8 Statistics That Reveal Major Money Problems in the US

8 Statistics That Reveal Major Money Problems in the US

Cynthia Measom   Wed, April 27, 2022,

When it comes to financial literacy, many Americans are struggling. From carrying perpetual credit card debt to taking out payday loans with astronomical interest, people are making bad decisions daily that contribute to their financial detriment.

To uncover just how serious the issue is, GOBankingRates researched statistics from the 2021 Financial Literacy and Preparedness Survey, which was conducted online within the United States by The Harris Poll on behalf of NFCC and Wells Fargo, as well as other statistical sources.

Here Are Eight Concerning Statistics On Financial Illiteracy In The U.S.

62% of Americans Say They Are Worried About Their Finances

According to the NFCC/Wells Fargo survey, the majority of Americans have financial concerns and many are experiencing increased worry about meeting basic household expenses, making debt payments on time, having enough money for emergencies or being able to save for future goals than they were a year ago. Of course, inflation will only serve to increase their worries.

Only 44% Follow a Budget

Following a budget allows you to track and control your money, which can lead to greater financial success. However, less than half of Americans have a budgeting plan in place, according to the NFCC/Wells Fargo survey.

38% of Households Carry Credit Card Debt From Month to Month

According to the NFCC/Wells Fargo survey, although half of Americans are carrying credit card debt, 38% are carrying the same amount of debt from month to month.

"Too often people will use credit cards to pay for everything but neglect to pay off the balance before the end of the month," said consumer analyst Julie Ramhold with DealNews. "In some cases, this is their only option to buy things like food or pay for utilities. But in many cases, people look at credit cards as a buy now, pay later option -- that is, buy whatever they want now and then just pay off the debt over time."

She added, "In truth, the better thing to do is if you're using the credit card for purchases that aren't necessities, make sure you have the funds to pay for them otherwise; then you can put them on your card but pay off the balance before it has a chance to accrue interest."

23% Say They Are Not Saving for Retirement

While two-thirds of the general population are saving for retirement, over one-fifth are saving nothing, according to the NFCC/Wells Fargo survey.

Retirement is the last dog at the bowl for most people," said Cyndie Martini, CEO and founder of Member Access Processing. "Because retirement always seems to be in the far distance, it is the last thing that most people save for. Other expenses take precedent over saving for retirement. At the same time, costs for the retired, including the cost of medical insurance and retirement communities is rising."

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