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According to a recent study, only about one-third of Americans have a financial plan. While having a financial plan may seem like an unnecessary hassle, it can help you save money, pay off debt, and achieve your financial goals.

There are several different types of financial plans available, so you have to find one that fits your specific needs. If you don’t currently have a financial plan in place, now is the time to create one.

In this article, we’ll provide some insightful financial planning statistics that will able to help to set you on the right track.

What Percentage of Americans Have A Financial Plan

On average, only 27.88% of Americans have a financial plan according to published data we collected from Schwab, Riaintel, Fortunly, AICPA, Debt.com, Savology, Planadviser, Spendmenot, and CNBC.

What Percentage of Americans Have A Financial Plan

This is a troubling statistic, as those without a financial plan are much more likely to experience financial hardship in the event of a crisis.

There are many reasons why it’s important to have a financial plan, and chief among them is the fact that a financial plan can help you stay on track with your long-term savings goals.

If you don’t have a financial plan, now is the time to start one. There are many resources available online or through your local bank or credit union. And if you need help getting started, be sure to consult with a financial advisor.

What percentage of Americans have no financial plan

An estimated 72.22% of Americans have no financial plan according to the published report data we analyze from multiple sources. This is a huge problem because, without a financial plan, it’s difficult to make smart decisions about your money and achieve your financial goals.

A good financial plan will help you figure out how much money you need to save for retirement, what type of investments are right for you, how much debt you can afford to take on, and so on.

So if you don’t have a financial plan, now is the time to start putting one together. There are plenty of online resources and even personal finance coaches who can help you get started.

What percentage of Americans have a Financial Advisor

About 35% of Americans have a financial advisor, a recent study done by Northwestern Mutual. This number is likely to go up in the future, as people become more and more aware of the importance of having professional help when it comes to planning for their financial future.

Financial advisors can provide a variety of services, including helping you create a budget, saving for retirement, investing money, and more.

If you’re looking for help managing your finances, it’s worth considering hiring a financial advisor.

How many people actually have a financial plan?

About, only 72.02 million Americans have a financial plan according to our calculation and collected data from various sources.

Statistics show that those without a financial plan are more likely to experience poverty, bankruptcy, and debt.

There are several reasons why it’s important to have a financial plan. First, having a plan allows you to track your progress and stay on track with your goals.

Second, having a plan can help you save money and make better decisions with your finances. Finally, having a plan can help you prepare for unexpected events such as job loss or health emergencies.

On this page, you will find:

Financial Planning Statistics (In General)

  •  Only 30% of Americans prepare a long-term financial plan with both savings and investment goals. (Source: Gallup)
  • People who are most likely to make a budget are those who earn at least 75,000 USD annually. (Source: Debt.com)
  • The 2018 data from the Federal Reserve revealed that Americans hold over $1 trillion in credit card debt. (Source: Debt.com)
  • The outstanding auto loan debt that Americans had totaled $1.22 trillion in 2018. (Source: Debt.com)
  • Approximately 66.7% of Americans have challenges navigating between spending and saving. (Source: North Western Mutual)
  • Nearly 67% of Americans who utilize the services of a financial advisor believe they have clarity on how much to spend and save for later compared to 44% of those without a financial advisor. (Source: North Western Mutual)
  • Research from Northwestern Mutual found that 40% of US adults acknowledged that although financial planning is as important as a medical checkup, it is not their favorite thing and only 18% loved to do it. (Source: North Western Mutual)
  • Americans spend $1,048 on winter holiday decorations, food, gifts, and shipping costs. (Source: Debt.com)
  •  70% of Americans agree that their financial planning needs improvement. (Source: North Western Mutual)
  • 9% of Americans save 10% or less of their income. (Source: The tokenist)

Americans’ Financial Planning Statistics

Statistics in this section depict financial planning trends among Americans. 

1.  34% of Americans with an advisor are more than twice as likely to have a balance between spending and saving compared to only 13% without a financial advisor.

(Source: North Western Mutual)

A greater proportion of individuals who have a financial adviser than those who do not find it simpler to maintain a proper balance between spending and saving. The fact that 60 percent of individuals without an adviser were more likely than 37 percent of those with an advisor to say that debt reduction was their top goal may be the primary explanation for this.

2.  54% of the Americans with an advisor felt very financially secure compared to only 21% without an advisor.

(Source: North Western Mutual)

In the 2018 Planning & Progress Study conducted by Northwestern Mutual, it was shown that individuals who utilized the services of a financial expert felt more financially secure than those who did not.

3. 75% of Americans with advisors consider themselves disciplined financial planners compared to only 37% of those without a financial expert. 

(Source: North Western Mutual)

Ultimately, financial advisers assist their customers in becoming disciplined financial planners to a certain degree. More than 70% of individuals who worked with an adviser said that their strategy had been designed to withstand market cycles, compared to just 29% of those who did not work with an advisor who claimed the same thing.

4. 59% of Americans with an advisor believed that, if they work past retirement age, it would be by choice while 41% said it would be from necessity by 41%.

(Source: North Western Mutual)

For those who do not have an adviser, the situation is reversed, with 61 percent planning to work beyond the age of retirement due to a lack of other options. According to the results of the 2018 Planning & Progress Study, Americans who engage with financial professionals exhibit better levels of retirement preparedness, disciplined planning, and financial confidence than those who do not interact with financial experts.

5. 40% of Americans who do not have a financial expert to help them plan their finances expressed a range of negative emotions about financial planning.

(Source: North Western Mutual)

There were a variety of negative emotions expressed by people who did not consult with financial advisors, including nervousness about confronting the financial details of their lives (17 percent), preferring to put it off until they are forced to, frustration with their financial situation (9 percent), and skepticism about the value of planning (5 percent).

6.  34% of the Americans said they had not spoken to anyone about financial planning, according to the 2018 survey.

(Source: North Western Mutual)

Lack of planning is ranked among the top five barriers to achieving financial security in retirement.

7.  42% of Americans seek financial guidance when they have an important financial decision to make such as buying a home or making saving and investing while 25% seek financial guidance when they encounter a financial crisis.

(Source: PWC)

Most Americans seek financial guidance out of necessity.

Budgeting and Spending Statistics

Making a Budget will help you keep track of your finances, particularly spending and consumption. It helps prevent runaway expenditure, and instills discipline and focus on the big picture toward our financial goals.

Statistics in this section reveal the budgeting trends among Americans.

8.  Average Americans allocated $7,923 on food in their budget, $20,091 on housing, and $7,296 on Personal insurance and pensions.

(Source: The tokenist) 

According to the Bureau of Labor Statistics, more money was spent on housing than on food in the United States in 2018. Food was allotted $4,464 out of the total amount, with $4,464 going for meals at home and $3,459 going toward food away from home. Approximately 56 percent of the typical American household’s food expenditure is spent on groceries, while 44 percent is spent on dining out.

Household expenses such as taxes, utilities, maintenance, rent and mortgage payments as well as goods and services provided by the government were covered by the funds allocated to housing. Rent and mortgage payments account for 33 percent of total housing expenses.

In the area of personal insurance and pensions, the Social Security payroll tax is the single largest expense. In addition to pension payments and life insurance premiums, this group covers other expenses.

9. The average American’s budget allocated $9,761 to transportation compared to $4,968 on health care and $3,226 on entertainment.

(Source: The tokenist) 

The only thing that received greater funding was transportation, which came in second. The amount of money set aside for transportation was more than the amount set out for meals. Other than the cost of vehicles, the transportation budget included expenditures such as insurance and public transit, as well as fuel, maintenance, and financing charges. 40 percent of transportation expenditures are spent on the vehicle, such as the payment of a car loan; 21 percent are spent on petrol and oil; and the remaining 32 percent is spent on other costs, such as repairs and maintenance.

The health care vote head is in charge of health insurance prices, medical services, prescription medicines, and other medical supplies, among other things. Insurance pays for 69 percent of all health-care expenses.

The entertainment allocation accounts for both in-home and out-of-home entertainment expenses, as well as the expenditures of pet care, among other things.

10.  The budgetary allocation for apparel and services is $1,866, compared to $1,407 for education, $1,888 for charities, and $768 for Personal care products and services.

 (Source: The tokenist)

More money was given to clothing and services than was provided to educational institutions. Personal care goods and services received the smallest amount of funding. The amount of money donated to charity decreased with time, from $2,081 in 2016 to $1,873 in 2017, and then rose slightly to $1,888 in 2018.

11.  30% of Americans prepare a long-term financial plan that outlines detailed savings and investment goals.

(Source: Gallup)

According to a 2013 study, the only Americans who created comprehensive budgets were those with a college degree, independents, republicans, and those earning more than $75,000 per year in income.

12.  32% of Americans rely on online programs to manage their money while 24% rely on an accountant or certified financial planner.

(Source: Gallup)

Americans are somewhat more likely than other countries to manage their finances via the use of a computer or an online financial software rather than through the assistance of an accountant or a certified financial adviser.

13.  On average, Americans spend 1,048 USD on winter holidays.

(Source: Debt.com)

During the winter holidays, Americans spend more money than they do at any other time of the year. This money is divided as follows: $659 is spent on presents for family, friends, and colleagues, $227 on food and décor, and $162 is spent on miscellaneous items that are not gifts:

Loans and Debts Statistics

This section will focus on statistics on loans and debts. Read on!

14.  The Americans’ outstanding debt was $1 trillion by the end of 2016.

(Source: CNBC)

According to the Nilsen Report, a trade publication for the card and mobile payment industries, only 650 billion USD of the $1 trillion debt was subject to financial charges, whereas 1.407 trillion USD of student loan debt was subject to financial charges, according to the report. By the end of 2016, 157 million Americans had outstanding debt on one or more credit cards, compared to just 44 million with outstanding student loan debt. This implies that in 2016, almost four times as many Americans had credit card debt as there were students with student loan debt.

15.  A survey by the U.S. Census Bureau revealed that about 62.4% of American adults carry credit card debt balances compared to 17.5% of Americans carry student loan.

(Source: Debt.com)

Despite the fact that this data demonstrates how serious an issue student loan debt is for borrowers, more Americans are saddled with credit card debt. After home debt, student loan debt ranks as the second most common source of indebtedness.

16.  In 2016, the average auto loan financing for new cars was $28,667.30 compared to $17,241.59 of the average used car auto loan financing.

(Source: USA Today)

Last year, the average monthly payment on a vehicle loan was $499, an increase from the previous year’s figure of $483. In 2014, 62 percent of car loans had durations of more than 60 months, with 20 percent having terms ranging from 73 to 84 months in length.

17.  By 2018, More than 40 million Americans have student loan debt.

(Source: Money.com)

14 percent of the more than 40 million Americans who have student loan debt owing more than $50,000, accounting for 5.9 million of the total. In 2000, the proportion of people who owed that amount was almost three times higher. More than $50,000 was owing by 18 percent of the most recent cohorts of borrowers who started repayment in 2014, according to the Federal Reserve.

18.  The mortgage debt was 10.04 trillion USD in the fourth quarter of 2020 compared to $13.95 trillion in 2019.

(Source: Investopedia)

In the fourth quarter of 2020, the mortgage balance increased by $182 billion dollars. The total amount of housing debt is now $10.39 trillion, which is an increase over the previous quarter’s total of $9.99 trillion. A new record high of 1.2 trillion USD was achieved in newly originated mortgages, which includes refinances. This surpassed in nominal terms the volumes seen during the historic refinancing boom in the third quarter of 2003 and the $1.28 trillion recorded during the severe recession of 2007.

19.  The student loan debt in the US was $1.71 trillion by 2021 compared to $1.50 trillion in the third quarter of 2019.

 (Source: Forbes)

There are 45 million Americans with student loans so far. The student loan delinquency rate stands at 11.1% (90+ days delinquent).

20.  American Debt: Auto Loan Balances Hit $1.36 Trillion in 2020 compared to $1.16 trillion as of March 2019.

(Source: Investopedia)

Despite the pandemic, America recorded an increase in auto car loans.

21.  Almost 186,000 American consumers had a bankruptcy notice in the third quarter of 2018.

(Source: The tokenist)

By the conclusion of the fiscal year March 31, 2021, bankruptcy filings had dropped by 38.1 percent. This precipitous decline occurred at the same time as the COVID-19 epidemic, which caused widespread economic disruption in March 2020. Annual bankruptcy filings were 473,349 cases in March 2021, down from 764,282 instances in the same month the previous year.

Savings Trends in the US.

Statistics in this section reveal savings trends in the US.

22.  As of February 2017, the average personal savings rate in the US was 5.6%.

(Source: Debt.com)

This means that the average American household saved a little over half of what they should have saved. Experts recommend that the personal saving rate should be 10% of the income.

23.  The personal saving rate in the United States decreased from 19.8% in January to 13.6 percent in February 2021.

(Source: Statista)

At the end of 2020, the personal saving rate was 13.7%. It was however 11% in 1960. In 2020, personal savings exceeded $2.3 trillion.

24. A 2019 study revealed that 64% of Americans were not prepared for retirement and 48% did not care.

(Source: GO BankingRates)

According to the GO Banking Rates study, 13.7 percent of Americans have no money set aside for retirement, while 28.6 percent had less than $10,000 set aside.

27 percent are more likely than the general population to have no retirement savings. Even though the majority of millennials have begun saving for retirement, they are just 6 percent more likely than older generations to have saved for their own future.

Sixty-three percent of Generation X had more than $10,000 in savings, with 40 percent having more than $100,000.

Demographic Financial Management Statistics

The following statistics show financial management trends among different demographics.

25.  In 2012, 43% of millennials are more likely to have outstanding student loan debt than 34% of young adults.

(Source: TIAA Institute)

Because of the increasing expense of higher education, students have been taking out more and bigger student loans. Concerns about student loan debt repayment are more prevalent among millennials than among any other generation.

26.  By 2016, 58% of millennials were saving for retirement compared to 55% of boomers and 65% of Gen Xers.

(Source: Ramsey)

When it came to investing for retirement, millennials fell between between the baby boomers and the Generation Xers. More than any other generation, Generation Xers put money aside for retirement.

27.  Almost 60% of millennials had less than $10,000 saved for retirement in 2016 compared to 50% of Baby Boomers.

(Source: Ramsey)

Despite the fact that millennials have had fewer than twenty years to accumulate their retirement assets, they are not that far behind many of their elders who are near to retirement.

28.  60% of millennials engage in expensive credit card behaviors, compared to 43% of older working-age adults in 2018 and 54% of young adults in 2009.

 (Source: TIAA Institute)

A large proportion of millennials make financial choices that are both costly and long-term in nature. People who have retirement accounts have taken out loans or made hardship withdrawals from their accounts in proportion to their income. Even more concerning, just 36% of millennials have determined how much money they will need to save for their retirement.

29.  In 2018, 41% of millennials had a cushion for emergencies, compared with 30% in 2009.

(Source: TIAA Institute)

When it comes to saving money for emergencies, millennials are less inclined to do so than older working-age people are. They were, on the other hand, more inclined to do so than their 2009 counterparts.

Young people are particularly vulnerable to financial fragility and anxiety due to high levels of debt, poor savings, and high-cost money management habits, all of which are prevalent among millennials.

Three-quarters of millennials reported feeling anxious or stressed about their money, and 68 percent of millennials said they couldn’t come up with $2,000 in 30 days if they needed to in an emergency.

30.  The average millennial debt load is $30,580.

(Source: Ramsey)

Millennials should prioritize debt repayment in order to relieve themselves of the stress of monthly loan payments. This will allow them to increase their savings to the required 15 percent of their income and, as a result, retire with more than $1 million.

31.  By 2020 the average American had $90,460 in debt, according to a 2021 CNBC report.

(Source: Debt.org)

There were many other kinds of consumer debt products featured, ranging from credit cards to personal loans, mortgages, and school loans. In 2020, the average amount of debt owed by Generation Z will be $16,043, millennials will owe $87,448, Generation X will owe $140,643, baby boomers will owe $97,290, and the silent generation will owe $41,281.

Final Thought

Our financial situation has the greatest impact on and permeates our life of any element of our existence. Your buying capacity and purchasing power will eventually leak through to define who you are in the marketplace, regardless of how well you compartmentalize other parts of your life.

Even if you try to hide from your financial situation, your financial situation will eventually find you.

Because of this, money management and financial data are very essential. A broad-based personal and national overview of money management data will keep you in touch with the statistical trends that are taking place in your immediate environment, ensuring that you are not caught off guard by the way the economic landscape is changing.

The assistance of a financial professional may assist you in staying on track with your financial life. Saving and spending should be done in a balanced manner, and the advice and assistance they provide will assist you in maintaining that balance.

When it comes to money management, budgeting is an essential step. A budget assists us in making decisions about how we intend to spend our money.

Creating a budget serves as a financial road map that you may follow over the course of your financial life. It assists us in keeping track of and controlling our expenditure.

FAQs

What does the term money management mean?

Monitoring expenditures, creating a budget, investing, and spending money are all part of the process of managing one’s financial resources. Everything from budgeting for where every paycheck should be spent to establishing long-term financial objectives and selecting assets that will assist you in achieving those goals falls under the umbrella phrase of financial management.

What is the importance of money management?

Money management provides us with a comprehensive overview of our financial situation. It also assists us in overcoming the barriers to wealth creation by allowing us to establish important financial disciplines. It provides us with a clear purpose for our money as well as solid money management techniques, which enable us to have much more control over our financial destiny.

What is budgeting?

Budgeting is the process of putting together a strategy for how you will spend your funds. A budget is a spending plan that outlines how much money will be spent in each category. Making a spending plan helps you to know ahead of time if you will have enough money to complete the tasks you have set for yourself. Budgeting is finding a way to balance your expenditures with your income.

What is the role of a budget?

Your financial position may be improved by using a budget to plan, organize, monitor, and analyze your spending and income. It helps you maintain control over your expenditures so that you can regularly save and invest a part of your earnings. In pursuit of your long-term financial objectives, a budget may assist you in staying on track.

What are the three basic principles of money management?

In addition to properly differentiating between your requirements and your desires, and understanding your priorities, there are three fundamental principles of money management. Another important concept is budgeting, since individuals who stick to a budget are less likely to go over their financial limits. The third premise entails the establishment of a savings and disaster relief fund.

Sources

Gallup

Debt.com

Northwestern Mutual

The tokenist

Northwestern Mutual

Pwc

The tokenist

Gallup

CNBC

USA Today

Money.com

Investopedia

 Forbes

Investopedia

Statista

GO BankingRates

TIAA Institute

Ramsey

Debt.org

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