Messy financial status isn’t something new to Americans. But the latest review from the American Institute of CPAs (AICPA) shows information about how bad Americans are doing on the whole. Here are some of the disturbing personal finance trends that should make you change your money habit.
Finance News Today – Disturbing Personal Finance Trends
1. The rise in credit card debt
According to the Federal Reserve Bank of New York, The United States credit card hit $870 billion in December 2018, and this represents the highest total ever. Though there is nothing wrong with using a credit card, if you don’t know how to use one responsibly, you’re better off without using a credit card.
2. Less than half of Americans are confident of achieving their retirement goals
According to the AICPA data, more than half of Americans are not confident in their ability to retire how and when they want to. Not to fall into this category, start saving for retirement as early as you can in life.
3. Several Americans aren’t planning a budget
According to the AICPA, only about 39% of Americans plan a budget. If you don’t have a budget, now will be the time to create one. You can start by listing your recurring monthly expenses from car payments to rent to leisure. Moreover, there are lots of money management tools out there, get one.
4. Most Americans don’t have emergency savings
Even though we are supposed to have saved 3 to 6 months’ worth of our living expenses for an emergency, about 40% adults don’t have mere $400 fund for an emergency – this is according to the U.S. Federal Reserve. Are you one of these people? Then it’s time to prioritize your emergency fund.
5. United States student debt
With the rate at which the cost of college is going up, several students are taking on a significant amount of debt to finance their educations. If your child is applying for college, try to encourage them to consider less expensive school and also avoid private student loans.