According to results released by Springleaf Financial (NYSE: LEAF), some 43% of Americans couldn't afford to go one month without a paycheck and a further 19% couldn't miss a single pay check without having to borrow money or sell assets. These results were consistent among all demographics including the most educated and highest income consumers.
The Springleaf Financial Strength Survery was conducted by Research Now in October of 2014 amoug 2,010 US consumers.
The survey also showed that 24% had less than $250 remaining by the time payday came back around and 10% had less than $50 which isn't enough for any unexpected expenses. Even in consumers earning over $200,000 per year, 20% said they saved inconsistently or not at all. Among college graduates 27% couldn't miss one month of income without selling assets or borrowing money.
Part of the reason that Americans have issues managing their finances is because they never learned how. One in five adults claimed to have learned about money the "hard way" according to the survey. Basic financial skills aren't a part of general education, they're learned at home. Many adults (17%), even though they realize they could benefit from the knowledge, would rather go to a dentist appointment than spend 30 minutes learning about finances and money management. That's a sobering figure; it shows us just how important financial education is and how reluctant Americans are to pursue that knowledge.
We have a long way to go go get the American consumer on the right track and in the right frame of mind financially. Some other interesting data shows that in March of 2015, for the first time, consumers spent more on dining out at restaurants and bars than they did at grocery stores. The data, released by the Commerce Department, goes back to 1992 and shows us how frivolous Americans spending habits have become.
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