Financial Confidence

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Financial responsibilities and financial confidence by age $90,000 60% $75,000 $60,000 50% $45,000 $30,000 40% $20,000 30% $10,000 0 Under 25 Years 25-34 Years 35-44 Years 45-54 Years 55-64 Years 65 Years and older 20% Spending Confidence Source: BLS “Table 1300. Age of reference person: Annual expenditure means, shares, standard errors, and coefficient of variation, Consumer Expenditure Survey, 2013”Annual expenditure means, shares, standard errors, and coefficient of variation, Consumer Expenditure Survey, 2013” 14 Financial Confidence: Examining the U-Curve—and How We Might Improve the Confidence Trajectory
A detailed look by decade Under 25: “The young and free” Average income: $27,941 Average percent confident: 39% Average annual vehicle payments: $2,262 Average annual mortgage payments: $449 Average household size: 2 people Average yearly expenditures: $30,373 Source: U.S. Bureau of Labor Statistics, “Table 1300. Age of reference person: Annual expenditure means, shares, standard errors, and coefficient of variation, Consumer Expenditure Survey, 2013” While earnings tend to be low, those in their early twenties also have, on average, the fewest financial responsibilities. From a financial planning perspective, that makes this an ideal time to start building a habit of saving for emergencies and retirement—though data reveals that few are. Of incoming LearnVest members, this age group is the least likely to have an emergency savings goal (16.8% of LearnVest members versus 28–30% of users in the 25–34 and 35–44 age brackets) 9 . Surveys show that only 43% of eligible workers under 25 participate in 401(k) plans, compared with over 70% of those over 45 years old, and that they contribute less of their income to retirement—4.3%, versus 8.7% for Americans between 55–64. 10 15 Financial Confidence: Examining the U-Curve—and How We Might Improve the Confidence Trajectory
Page 1 and 2: Financial Confidence Examining the
Page 3 and 4: Financial Confidence and the Workpl
Page 5 and 6: Introduction How do people feel abo
Page 7 and 8: Curious about whether income played
Page 9 and 10: A closer look at earning power Larg
Page 11 and 12: The average income for Americans gr
Page 13: The data shows that average America
Page 17 and 18: Age 25-34: “The upwardly immobile
Page 19 and 20: Age 45- 54: “The light at the end
Page 21 and 22: found that people across age and in

Financial Confidence

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