What Does the Future Hold?
2020 will be remembered for a long time to come. So much changed so fast, and it’s hard to figure out what is going to happen next. How do you begin to get used to this new normal, and what are the things for which you should be glad? Surely, there has to be some light at the end of the tunnel.
The issue is that before COVID-19, studies showed that only 28% of Americans were financially healthy. This means they’re able to cover expenses and have some left over to invest or stash away in their savings. While that’s all very well for the folks who have, what about the rest of us? 55 percent of us are coping financially, while 17 percent are considered financially vulnerable.
Becoming financially literate is part of the journey for all of us to feel fiscally secure and not at risk. Unfortunately, only 24 percent of Millennials show signs of at least basic financial literacy. The future for Millennials doesn’t look as bright as it should. Having an app doesn’t necessarily mean you understand what is going on or how to manage your finances. While almost 70 percent believe they have it covered, experts seem to disagree and suggest the number might be as low as 24 percent being able to even deliver the basics when it comes to financial literacy.
While the fact is that 84 percent of Americans have higher family income than their parents did at their age, the younger generation hasn't fared quite as well. The reality check means that when you look at inflation just earning 10 points more than your parents did at your age doesn’t matter when the cost of living has shot up by 30 percent!
It isn’t only the younger Americans that don’t have things all squared away. About 1 in 3 of us use some sort of household budget plan regularly. That’s about the same number of people who have a long-term plan for their money. Only 30 percent of Americans are thinking about savings and investments for the future. Only a quarter of American citizens have or use some sort of written financial plan at all.
No matter what the future holds, we will have to live in it, and it behooves us to make the best future possible, not just for ourselves but for future Americans as well. The sooner we all take a good look at our finances and start learning how to live in a position of strength, preferably debt-free with long-term stable goals, the better.
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