The Washington Post just sited the U.S. Census Bureau and Bankrate just released a new survey which finds that most Americans are completely financially unprepared. The Bankrate study was conducted from September 3-8, 2019. The methodology was a sample size of 2,016 respondents. The margin of error is +/-2.39% at the confidence level is 95%.
Recession or not … many Americans (the church) are already 'living on edge' financially.
More than a decade into the longest economic expansion on record, almost two-fifths of people say their main financial priority each month is just keeping their heads above water and paying for their living expenses. According to Bankrate’s September Financial Security Poll, many of those surveyed said that they have no financial budget.
The lack of financial preparedness highlighted by the survey could spell trouble for many households as people without a budget are often less equipped to handle financial emergencies.
Is there more than just keeping your head above water?
it seems every day economists believe the U.S. will experience a recession within the next year to year and a half.
A downturn could mean many companies will cut jobs, lenders will become more reluctant to approve loans and offer lines of credit and families may scramble to make ends meet during income interruptions.
Among this survey; 38% said their top financial priority is “just staying current on living expenses or getting caught up on all the bills.” 19% said they were mainly working on paying down debt, credit cards, and student loans.
One must increase their financial literacy.
Millennials who graduated during the last recession may be the most in need of basic financial planning help. More than half (51%) of adults between 23 and 38 said they were not using a budget.
According to the Council for Economic Education, as of 2016, only 17 states required students to take a personal finance course in high school. And only 20 states required an economic class.
A professor at the George Washington University School of Business said “I’m concerned about the lack of economic knowledge and financial literacy putting people at a disadvantage even without a recession.” Research shows wealth inequality between individuals can somewhat be explained by the different levels of financial knowledge. Knowing how to create and maintain a budget is a starting point, but people need more skills to successfully manage their money on a day-to-day basis and for the long term.
Topics like student loans, taking out a mortgage to buy a home and funding your retirement are all requiring more eduation.
You’re at a disadvantage if you don’t have this knowledge. You’re at a disadvantage because you’re making financial decisions every day.
During the “subprime mortgage meltdown”, i.e. the last recession, millions of Americans lost their jobs and many were living paycheck to paycheck, which meant many couldn’t pay their mortgages. Millions of Americans lost their homes. Experts are saying today the housing bubble is larger than it was back then. Which means the average American family is extremely vulnerable, which means the church is extremely vulnerable.
On Thursday, September 26, The Washington Post sited the U.S. Census Bureau saying data show income inequality in America is the highest it's been since Census started tracking it (the U.S. Census Bureau has been measuring this since 1967). So federal data shows the gap between the rich and the poor is now greater than ever before. With poverty and unemployment rates at historic lows, the separation between rich and poor is greater than it has ever been. Another startling stat is wealth inequality in the U.S. is far greater than it is in any country in Europe.
Unfortunately, the fruit of this condition is that more Americans than ever are convinced that socialism is the answer. This is confirmed by the rise of acceptance of politicians such as Bernie Sanders and Elizabeth Warren.
If you REALLY want to understand global finances let me recommend a website. www.TheGlobalEconomy.com is a site that provides business and economic data for 200 countries. It provides up-to-date numbers for GDP, inflation, credit, interest rates, and employment for 200 countries.