We’re average students, getting a “C” when it comes to understanding finances, Americans say
10 April 2019 - 11:30PM
Business Wire
More than half of Americans say they’d earn a “C” or lower when
it comes to financial literacy, according to a new survey conducted
by Harris Poll on behalf of Prudential Financial, Inc. (NYSE:
PRU).
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20190410005187/en/
(Graphic: Business Wire)
Nearly three quarters (73%) take responsibility for their own
grade. That’s not such a surprise given that nearly half of
American adults (46%) spend more than two hours on social media
each week, while fewer than a fifth (17%) spend that much time
managing their finances.
Information overload may be to blame. Two thirds of Americans
(66%) say the list of things they need to learn to successfully
manage their finances keeps on growing, not shrinking.
“Our industry needs to drive home the importance of financial
education, and lead the way in providing it, to help clear a path
toward financial wellness,” said Caroline Feeney, head of
Individual Solutions at Prudential. “It’s important for us to help
Americans understand how to manage day-to-day finances, achieve
important financial goals and protect against future financial
risks.”
Among other key findings:
- Nearly a quarter (23%) of Americans say
their debt is higher than their retirement savings.
- 15% of Americans who say they have no
debt also have saved nothing toward retirement.
- Only 12% of Americans would use a
financial windfall to add to retirement savings—worth considering
as they head toward the April 15 tax deadline and the potential for
refunds.
Previous data from Prudential’s Financial Wellness Census shows
more than a quarter of Americans have a skewed sense of their
financial health, with many optimistic about their financial future
despite objective measures showing them falling behind in achieving
their financial goals. In fact, the census data showed less than
half of Americas are on track to meet their goals, including
planning for retirement.
Financial literacy programs and professional financial advice
can play a key role to get Americans back on the right track.
According to the Census, while nearly two thirds of Americans don’t
have a financial advisor, many say they cannot afford one (42%) or
that they have enough assets to need an advisor’s help (26%). The
truth is that advice is more within reach than ever before—and it’s
not just for the wealthy.
“Advisors are increasingly playing the role of financial
counselor, helping consumers make the shift from retirement
uncertainty and financial insecurity into actions that help them to
achieve financial wellness before and into retirement,” said
Feeney. “Our lifelong personal financial wellness journeys often
require a combination of smart solutions, good advice and guidance
about appropriate investment tools and products.”
Today, people can access advice along the spectrum, from
self-directed methods, to hybrid advisors who serve as coaches help
clients along the self-directed path to full-service, high-touch
advice. Prudential, in part, supports individuals in finding their
path to financial wellness as a founding member of the Alliance for
Lifetime Income, where the company playing a leading role in
launching awareness and education campaigns for consumers and
financial professionals about the importance of lifetime income.
More information is available at retireyourrisk.org.
Survey Methodology
This survey was conducted online within the United States by The
Harris Poll on behalf of Prudential from March 26 - 28,
2019 among 2,045 U.S. adults aged 18+. This online survey is not
based on a probability sample and therefore no estimate of
theoretical sampling error can be calculated. For complete survey
methodology, including weighting variables and subgroup sample
sizes, please contact Prudential.
About Prudential Financial, Inc.
Prudential Financial, Inc. (NYSE: PRU), a financial services
leader, has operations in the United States, Asia, Europe and Latin
America. Prudential’s diverse and talented employees are committed
to helping individual and institutional customers grow and protect
their wealth through a variety of products and services, including
life insurance, annuities, retirement-related services, mutual
funds and investment management. In the U.S., Prudential’s iconic
Rock symbol has stood for strength, stability, expertise and
innovation for more than a century. For more information, please
visit news.prudential.com.
The Prudential Insurance Company of America, Newark, NJ.
1019978-00001-00
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190410005187/en/
Kristin Meza973-367-4104kristin.meza@prudential.com
Prudential Financial (NYSE:PRU)
Historical Stock Chart
From Mar 2024 to Apr 2024
Prudential Financial (NYSE:PRU)
Historical Stock Chart
From Apr 2023 to Apr 2024