Stress Test: Americans, Especially Women and Younger People,
Stressed by Finances
CFP Board Survey finds financial planning most helpful in reducing stress
Washington, D. C., April 15, 2015 (PDF) – Americans, particularly women and younger people, overwhelmingly experience stress when it comes to thinking about and managing their finances, according to a survey released today by Certified Financial Planner Board of Standards, Inc. (CFP Board). Nearly 9 in 10 of those surveyed (86%) feel stress when it comes to their finances, with women (89%) and younger respondents between the ages of 18-44 (91%) more likely to feel any stress about finances. Older Americans are the least likely age group to report financial stress, with only 78 percent of respondents age 65 or older reporting financial stress.
The survey, conducted on behalf of CFP Board by ORC International, found that Americans clearly recognize ways for successfully managing their financial stress, with financial planning the top solution. More than a quarter of respondents report that having a financial plan will help most in reducing their stress (27%), with younger respondents (ages 18-44) particularly confident in the value of having a plan (35%). Others preferred solutions for decreasing the level of financial stress include having more knowledge in certain finance areas (22%), more knowledge about their own finances (14%) and more time to focus on their finances (12%).
While the majority of Americans experience some level of financial stress, the reasons and occasions for their stress vary, as well as the ways in which they manage it:
More than half of Americans (53%) experience stress about their finances at certain times, including at the end of the month when bills are due (24%), around the holiday season (15%), and during tax preparation season (11%). A quarter (25%) feel stressed about finances all of the time.
While the majority of respondents say they get stressed about their finances, very few (13%) believe their stress definitely hinders their ability to make decisions about their money, while roughly a quarter (28%) say that it sometimes does.
The survey findings are particularly interesting in light of previous national research conducted by CFP Board and the Consumer Federation of America. According to the 2012 Household Financial Planning Survey, having a financial plan leads to greater confidence and lower debt. Those who have prepared a personal financial plan are more likely to feel on pace to meet all of their financial goals, such as saving for retirement or for emergencies.
Consumers can learn more about creating a financial plan and finding and working with a Certified Financial Planner™ professional at LetsMakeaPlan.org.
About the Survey Methodology
ORC International administered the online survey to a representative sample of 1,008 adults 18 years of age and older, from March 30 - April 1, 2015. Respondents for this survey were selected from among those who have volunteered to participate in online surveys and polls. The data have been weighted to reflect the demographic composition of the 18+ population. Because the sample is based on those who initially self-selected for participation, no estimates of sampling error can be calculated. A complete report can be found at CFP.net.
About CFP Board
The mission of Certified Financial Planner Board of Standards, Inc. is to benefit the public by granting the CFP® certification and upholding it as the recognized standard of excellence for competent and ethical personal financial planning. The Board of Directors, in furthering CFP Board's mission, acts on behalf of the public, CFP® professionals and other stakeholders. CFP Board owns the certification marks CFP®, Certified Financial Planner™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. CFP Board currently authorizes more than 71,000 individuals to use these marks in the U.S.
CONTACT: Jessica Lewis, Communications Specialist P: 202-379-2256 E: firstname.lastname@example.org Twitter: @cfpboardmedia
About Robert Schmansky, CFP®
Robert Schmansky is the founder of Clear Financial Advisors of Metro-Detroit. Rob has over a decade of experience helping individuals and families meet their financial goals and overcome money concerns. He is frequently quoted in the media on issues regarding personal financial planning, and has been a contributing writer for U.S. News & World Report, Forbes and Yahoo!Finance, and an investment expert for FiLife, a former Dow Jones/IAC joint Internet venture. He has been an adjunct instructor of economics and the required courses for candidates to sit for the CFP® exam. He is the 2013 PlanPlus Global Financial Planning Awards North American finalist.
CONTACT: Robert Schmansky, CFP® P: 248-677-1762 E: email@example.com W: www.clear.financial Twitter: @moneyclarity