Just a Third of Americans Are Confident Managing Their Finances
Low confidence could stem from many Americans not seeking out advice — professional or otherwise — according to a Thrivent study.
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Let’s just say not everyone’s as good with their money as they should be.
Only a third of Americans are currently confident about managing their finances, according to a new survey from the financial services firm Thrivent. The company suggested the low confidence could be the result of roughly three in 10 Americans not seeking out any type of advice — professional or otherwise. While it’s an ominous sign for the country’s financial health, it does suggest there’s plenty of opportunity for firms to attract new clients and assets as the average American income continues to grow.
“People are grappling with many financial challenges all at once, so there’s a growing need for professional advice,” Thrivent advisor Sarah Hamlen told The Daily Upside.
Get in Shape
Financial fitness is exceptionally poor among younger generations with only 21% of Gen Z and 26% of millennials reporting they were very confident managing their finances. That may be a given as younger folks tend to be inexperienced investors and savers, with many still chipping away at student loans. However, those levels didn’t rise all that much when you look at older demographics:
- Just 29% of Gen X and 38% of baby boomers reported having a handle on their money, the survey found.
- Additionally more than half of Americans said they were worried about their ability to retire, and yet just 28% are currently saving for the day they finally exit the workforce.
Spreading Awareness: There’s an awareness gap that advisors need to tackle to get Americans the help they need, said Oasis Group CEO John O’Connell. He suggested advisors promote additional thought leadership through traditional marketing like newsletters and blogs, but also new media like Instagram Reels (for those young’uns) and Facebook videos.
“Many advisors are not actively promoting their firms and capabilities beyond their referral network,” he told The Daily Upside. “Promoting the industry as a whole is the responsibility of all financial advisors.”
