NATIONAL SURVEY: Two-Thirds of Middle-Income Americans Feel School Failed Them on Financial Education, with Youngest Most Challenged
60% say they are not saving enough for retirement
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Primerica Household Budget Index™ - In
A majority of those under age 65 said their financial education fell short, with the youngest age brackets expressing the highest level of dissatisfaction, including 73% of those ages 18-34, 69% of those 35-49, and 65% of ages 50-64. In contrast, a majority (61%) of men over 65 felt their education did a good job preparing them — the only demographic to believe so — while a majority (57%) of women in the same age group said the opposite.
Specifically, most middle-income Americans said schools did not prepare them for tasks such as doing taxes (71%), paying back student loans (67%), taking out and paying back loans (64%), or setting a household budget (59%).
“We are seeing a clear lack of confidence among middle-income Americans who believe their education failed to prepare them to manage their personal finances, with an overwhelming majority of young people feeling left behind,” said
The latest FSM™ survey coincides with the release of Primerica’s Household Budget Index™ (HBI™), which indicates middle-income households experienced a slight dip in purchasing power after a stronger start to the year, as rising costs for necessities like gas slightly outpaced income gains. The HBI fell to 101.2% in February from 101.6% in January but is still up notably from 95.9% compared to one year ago.
“Gas price increases are often immediately felt by middle-income Americans, with a direct impact on their purchasing power with every fill-up. Relative to a year ago, middle-income households are doing a bit better as the prices of most necessities have increased only a small amount and gasoline has come down some while incomes have risen at a faster pace on average than overall inflation,” said
Key Findings from Primerica’s
- Schools fall short on financial education, with generational divide. The majority (66%) of middle-income Americans feel the education they received during their upbringing didn't equip them to manage their finances as adults. Nearly half (49%) say that it did not prepare them well at all, with a third (33%) saying it prepared them very or somewhat well.
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Middle-income Americans are increasingly concerned about credit card debt. More than a third of middle-income Americans (38%) are more concerned about their credit card debt compared to a year ago. A majority who feel this way also report spending less overall (71%, up 9 points since
December 2023 ), and some say they are looking at additional income sources (32%, up 6 points) or debt consolidation (16%, also up 6 points). - Most middle-income Americans merge finances with their partner after marriage. About three-quarters (73%) of married Americans merge their finances with their partners, a fifth (20%) keep their finances separate from their partner, and less than a tenth (7%) say they do something else. Of note, college-educated women show a higher tendency to keep their finances separate from their partners (64% merge, 21% separate, 15% something else).
- Middle-income Americans are saving less for retirement. The percentage of people putting less money into their retirement accounts has increased 7 points over the past two years even as 60% do not believe they are saving enough to retire comfortably.
- Rising cost of necessities remains an issue. Most middle-income Americans (88%) say recent increases in food prices have impacted them and their family. Individuals report having to buy cheaper options for similar products (68%), buy less food (54%), change their eating habits (48%), use coupons more frequently (37%), and buy more in bulk (30%).
Primerica Financial Security Monitor™ (FSM™) Topline Trends Data
|
Mar. 2024 |
Dec. 2023 |
Sept. 2023 |
Jun. 2023 |
Mar.
|
Dec. 2022 |
Sep. 2022 |
Jun.
|
Mar. 2022 |
How would you rate the condition of your personal finances? (Reporting “Excellent” and “Good” responses.)
Analysis:Respondents remain split on their assessment of their personal finances. |
50% |
50% |
49% |
50% |
52% |
53% |
53% |
54% |
60% |
Overall, would you say your income is…? (Reporting “Falling behind the cost of living” responses.)
Analysis: Concern about meeting the increased cost of living dropped over the past year. |
67% |
68% |
72% |
71% |
72% |
72% |
75% |
75% |
67% |
Do you have an emergency fund that would cover an expense of
Analysis: The percentage of Americans who have an emergency fund that would cover an expense of |
62% |
60% |
62% |
61% |
58% |
59% |
60% |
61% |
62% |
How would you rate the economic health of your community? (Reporting “Not so good” and “Poor” responses.)
Analysis: Respondents’ rating of the economic health of their communities has gotten worse over the past year. |
60% |
57% |
55% |
54% |
59% |
53% |
55% |
58% |
52% |
How would you rate your ability to save for the future? (Reporting “Not so good” and “Poor” responses.)
Analysis: A significant majority continue to feel it is difficult to save for the future. |
67% |
73% |
71% |
71% |
73% |
74% |
73% |
72% |
66% |
In the past three months, has your credit card debt…? (Reporting “Increased” responses.)
Analysis: Credit card debt has remained steady over the past year. |
34% |
35% |
34% |
33% |
33% |
39% |
37% |
29% |
25% |
About Primerica’s Middle-Income Financial Security Monitor™ (FSM™)
Since
About the Primerica Household Budget Index™ (HBI™)
The Primerica Household Budget Index™ (HBI™) is constructed monthly on behalf of Primerica by its chief economic consultant
The HBI™ is presented as a percentage. If the index is above 100%, the purchasing power of middle-income families is stronger than in the baseline period and they may have extra money left over at the end of the month that can be applied to things like entertainment, extra savings, or debt reduction. If it is under 100%, households may have to reduce overall spending to levels below budget, reduce their savings or increase debt to cover expenses. The HBI™ uses
Periodically, prior HBI™ values may be revised due to revisions in the CPI series and
About
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Public Relations
gana.ahn@primerica.com
Investor Relations
nicole.russell@primerica.com
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