FINRA Finds Most Americans are Financially Better Off in 2016
Most Americans are in much better shape financially in 2016 than they were in 2012, when the last FINRA report on Financial Capability in the United States was released. They’re finding it easier to pay their bills and are increasingly satisfied with their finances. “This does not apply to everyone, however,” said Daniel Lerner, EVP of David Lerner Associates. “It seems that minorities and young people are still feeling the pinch.”
Here are the main areas of improvement in the 2016 FINRA report:
- They have set aside enough money to cover living expenses for three months - increased from 40% in 2012 to 46% in 2015.
- They find it not at all difficult covering expenses and paying bills – up to 48% in 2015 from 40% in 2012
- They are certain that they could come up with $2,000 in the next month to meet an unexpected need - rose to 39% from 35%.
The groups having the most trouble with making ends meet, planning ahead, managing financial products, and financial knowledge are African-Americans, Hispanics, Millennials, and those without a college education.
One universal concern uncovered by this FINRA report is the cost of healthcare. More than a quarter of respondents say they avoided some kind of medical service in the past year due to cost concerns. Another area that touches everyone is saving for the long term — the portion of people participating in retirement savings accounts hasn't improved since the first survey six years ago.
How to improve your financial capability
Retirement may seem way off in the future, but the best way to ensure that you can retire one day is to start saving early. Use this retirement calculator on the David Lerner Associates website.
Make sure your children can get a college education, so that they are not in the “young people without a degree” category.
Educate yourself on financial matters. The David Lerner Associates Newsroom has a wealth of information that can improve your financial knowledge.
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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com
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