Financial Confidence

Introduction
How do people feel about their finances? While
it might be assumed that financial confidence
increases with time—along with wisdom and
salaries—LearnVest research found the opposite.
In this paper, LearnVest looks at data from our
own members, statistics from the U.S. Bureau of
Labor Statistics, and several recent studies to try
to answer the confidence question. Specifically,
we examine the sharp decline in confidence after
age 25, and how increased financial responsibility
paired with stagnant income growth can culminate
in a crisis of confidence for people in their mid-
30s and 40s. In delving into the root causes, we
also begin to explore how the financial planning
industry can help rewrite the confidence story.
5 Financial Confidence: Examining the U-Curve—and How We Might Improve the Confidence Trajectory