Nearly Half of Consumers Don’t Have Enough Savings to Live on for More Than a Month!

Times are hard every where. Plain to see the struggle people have each and every day. I came across this recently and had to share…

RetailMeNot (www.retailmenot.com) released concerning findings from a personal finance survey conducted with The Omnibus Company (www.omnibus.com) in honor of Financial Literacy Month. Nearly half (49%) of consumers surveyed lack confidence in their knowledge or understanding of their personal finances. This deficiency in financial literacy is likely a contributing factor to why nearly half (48%) of respondents do not have enough money saved to last them more than a month if they were to lose all sources of income.

“A large percentage of people surveyed report they are living without any sort of financial safety net,” says Trae Bodge, senior editor for The Real Deal by RetailMeNot. “Saving money is just one part of the financial literacy equation. It is also important that consumers spend wisely to be able to afford the items they need. Making small adjustments to shopping behaviors, like utilizing discounts for everyday purchases, in addition to putting away even a small amount each month, are important steps toward achieving overall financial health.”

Savings Silver Lining

Of consumers surveyed who have enough savings to last them more than a month without additional income (52%), the amounts are substantial—on average, they estimate their savings would last them over eight months (34 weeks) without additional income.

Even though some consumers have money tucked away, they may not be monitoring these funds closely. One in four (25%) respondents with a savings account do not know how much is in it.

  • More males than females (30% vs. 20%) are unaware of how much is currently in their savings account.

Lack of financial knowledge could help explain why many respondents are concerned about their financial future—as more than 3 in 4 (78%) worry that they will not be able to retire at the time and in the style they hoped for.

  • Those who are not married are less confident than those who are married (18% vs. 26%) in their ability to retire at the time and in the style they hoped for.

The survey shows consumers are open to taking steps to better manage their finances, but they want to tackle it on their own. Nearly 2 in 3 (64%) would consider developing a budget, and over half (52%) would be open to setting a specific financial goal for the future, but less than 1 in 5 (16%) would be likely to hire a financial adviser.

Educating Future Generations

A large majority (92%) of respondents believe it is up to parents to educate future generations about money matters, yet less than half (47%) of parents indicate they are confident in their own understanding of the topic.

There are some things you can’t learn in the classroom—nearly 7 in 10 (68%) respondents believe assigning chores for allowance is one of the best ways to teach children financial lessons, while only about 2 in 10 (22%) percent would say the same about enrolling their children in a financial class.

  • Those ages 50+ are more likely than 18- to 49-year-olds (75% vs. 63%) to feel that assigning chores for allowance is one of the best ways to teach kids financial lessons.
  • Younger respondents age 18 to 34 are more likely than people age 35 and older to think playing a game is a good method to teach children financial lessons (36% vs. 26%).

Nearly 3 in 10 (29%) of those surveyed feel a person should become financially responsible for themselves when they move out of their parents’ house or when they get their first full-time job. Less than 1 in 10 feel this should happen at more family-centric milestones like when they get married (6%) or have kids (4%).

  • More non-parents than those with kids (32% vs. 22%) feel that a person should become fully financially responsible for themselves when they get their first full-time job.
  • The largest majority of parents (27%) think a person should become financially responsible for themselves when they move out of their parents’ house.

For more information on Financial Literacy Month and tips for smarter shopping, visit The Real Deal by RetailMeNot.

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Have you thought about this?  I know that I am on fixed income and without my hubby working… we would just not make it. Our savings was wiped out when I became sick 4 years ago. Do you have any financial backup if something should happen to take away your main income?

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18 Responses to Nearly Half of Consumers Don’t Have Enough Savings to Live on for More Than a Month!

  1. We have some savings, but I hate to think about what would actually happen if my husband lost his job. I only work part time and we’d be up a creek.
    Robin (Masshole Mommy) recently posted…My Running PlaylistMy Profile

  2. We have an emergency bank account that we could live off of for a year or more, but I know way too many people who do not, I think it is sad that they don’t or can’t financially plan ahead.
    Amy Desrosiers recently posted…Shop Your Way Reward Max Program-Just $39 Per Year! #AdMy Profile

  3. Debbie L. says:

    Saving accounts are so important. Just the peace of mind that if anything goes wrong you will be okay is so important to us. Life throws some major curve balls – you never know what will happen next!

  4. This is a big wake-up call. It’s so easy to just keep putting things on a credit card.
    Lois Alter Mark recently posted…jane goodall: lessons learned from “jane’s journey”My Profile

  5. Jennifer B says:

    We have a little saved up but could always use more!
    Jennifer B recently posted…Fragile Creatures by Kristina CircelliMy Profile

  6. Pam says:

    This is such a scary statistic! I have tried to teach my kids to save, and we save, but it’s alarming how many people don’t.
    Pam recently posted…Spring Flower Cupcakes Ideas #RecipeMy Profile

  7. Sandra says:

    Wow, that is shocking. I knew that it was probably bad, but not the bad. We need to teach kids earlier. And that you can wait for things, we don’t “need” it all the time.

  8. Shauna says:

    I know, I am so super-scared about the future. We lost everything in the housing drop and are working hard to rebuild.

  9. Lisa Jones says:

    EVERY ONE IS OUT WORK OR HAS A LOW PAYING JOB IT”S NOT LIKE IT WAS IN THE 80′s IT’S SCARY HOW CAN YOU SAVE IF YOU CAN’T EVEN MAKE ENDS MEET!!!
    Lisa Jones recently posted…Retail Round Up 4/4!My Profile

  10. Thankfully my husband does our finances and he is very smart with money and he has made smart choices for our family if anything ever happened.
    Mama to 5 BLessings recently posted…Link Up Your Giveaways @ Super Saturday Link Up (Giveaway Linky)My Profile

  11. I don’t think many people have a financial back up plan. It’s so hard these days to think about savings and making sure you have enough put away for the future! Luckily, we both have nice retirement accounts
    Karen @TheMissingNiche recently posted…Helping Children Cope and Keeping Depression at BayMy Profile

  12. Rachael says:

    I have no savings at all. I’m trying to build my own coaching business so that I can have a savings for the future. It will never happen if I stay at my job. I only make enough to just get by.

  13. brett says:

    we’re kind of not-normal

    but we do have savings in place for at least 6 months. we have only our mortgage for debt. we buy whatever possible on our discover and pay it off monthly.

    we’re just too afraid NOT to have savings. so we save more.

  14. Lexie Lane says:

    Saving is so challenging, especially when things just keep coming up in your life. I think that’s what people struggle with. Sadly, I think that’s why we have this downfall in our economy … most people just couldn’t handle their finances. More people live in the moment rather than live for later.

  15. An emergency fund is so important. Perhaps this post will encourage others to start one.
    Janeane Davis recently posted…Debt – It Exists – Don’t Hide From ItMy Profile

  16. My husband and I have had a savings for the past 10 years, and we estimate that if could pay 6 months of our bills if it had to. If we ever have to borrow from it, we return it from the next tax return. I don’t think I could sleep at night without it. I left my job last year, however, and we lost about 70% of our income, so I don’t know how our savings will fare. It really is a top priority for us, though. We have continued to scale down the size of our home, utilities and grocery costs so that we can maintain it. Fingers crossed that we can continue!
    Wendy @ ABCs and Garden Peas recently posted…Lunchbox Tips {featuring Philadelphia Soft Cream Cheese Spread} #Cbias #SpreadTheFlavorMy Profile

  17. Rosie says:

    I’ve been thinking a lot about this lately actually! In NZ I think one thing that people lack is education on how to manage money well! I seriously think it’s something that should be taught at schools, as it’s one of those life lessons that will help you forever. Thanks for posting this info!
    Rosie recently posted…The Business Plan Project: Lesson Seven: MarketingMy Profile

  18. Well, we do not have any savings, that went when my husband had to go on workman’s comp a few years ago. The money he got from there, was not enough to keep us afloat! After that, they laid people off, lowered hours and well, my husband kept his job with less hours and it’s been hard to get our savings back up! My husband is 10 years away from retiring, so I am praying I can get something saved to help us out before that time. I make some money blogging, but it’s nothing like 2 yrs ago!
    Sandra @MyFrugalSavings recently posted…Play2Shop #Review & $50 Amazon or Paypal #Giveaway!My Profile