General Population Survey 0
Methodology Thrivent Financial’s 2015 Money Mindset Report was conducted by Wakefield Research (www.wakefieldresearch.com) among 1,001 nationally representative U.S. adults ages 18+ between July 16 and July 27, 2015, using an email invitation and an online survey. Quotas have been set to ensure reliable and accurate representation of the U.S. adult population ages 18+. Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. For the interviews conducted in this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 3.1 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample. For more information visit www.thrivent.com/moneymindset
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Key Findings – Wise with Money Key findings from the report indicate that although financial security is a common concern for Americans, respondents lack confidence in managing their finances and are ill-prepared for the future.
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Only 27 percent of Americans are very confident they are making the right decisions with their money. And the same percent (27 percent) admit they currently live above their financial means.
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It’s no secret that many Americans struggle to keep up with their daily expenses – but some are closer to the edge than others. Sixteen percent of Americans struggle to keep up with day-to-day expenses. Meanwhile, 32 percent are fairly stable, but just making ends meet and only 10 percent feel they have more than they need.
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Most Americans aren’t protecting their finances for the future. More than half of Americans (53 percent) don’t have life insurance, 62 percent don’t have a retirement fund and 89 percent don’t have disability income insurance.
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Many Americans face struggles with their finances for a variety of reasons – 32 percent don’t have an emergency fund, 25 percent don’t have a long-term financial strategy and 21 percent don’t have a short-term plan. Additionally, 79 percent of Americans don’t have a financial advisor.
Key Findings – Generosity Although the findings reveal Americans are struggling with money, they still see themselves as generous and prioritize giving back.
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Americans consider themselves to be very generous. Indeed, 71 percent – including 79 percent of Millennials – think they’re more generous than the average American.
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Most consider “generous” to be a pretty high compliment: 61 percent would rather others call them generous than financially successful.
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More than 1 in 3 (35 percent) Americans think the purpose of the money they make is to give back – whether during their lifetime or after.
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Fifty-nine percent of Americans who would donate more if they made more money feel they’d need to make $5,000 or more a year in order to give more.
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Fifty-nine percent of Americans think donating time makes a bigger impact than donating money.
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Sixty-four percent of Americans, including 70 percent of Millennials, regularly volunteer for a nonprofit organization. The biggest percentage of Americans volunteer at churches and with organizations that help those in poverty.
Key Findings – Faith and Finances Those who turn to their faith communities also feel more equipped for the years ahead. Millennials are most likely to refer to faith communities in times of financial need.
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People who are having financial troubles want to turn to someone they trust. Perhaps that’s why nearly 1 in 4 (23 percent) Americans, including 38 percent of Millennials, have turned to a faith community, religious leader or faith-based financial education for financial advice.
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Those who have turned to their faith communities also feel slightly more prepared for their future. Twenty-eight percent have a long-term financial plan, compared to just 19 percent of those who have not turned to a faith community.
WISE WITH MONEY
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Future Financial Uncertainty •
79 percent of Americans do not have a financial advisor and only 21 percent of U.S. adults have a long-term financial plan in place.
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51 percent of men have a retirement fund, compared to 28 percent of women.
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Baby boomers plan the most, but 50 percent of this generation still doesn’t have investments in stocks and bonds, a long-term financial plan, mutual funds, a financial advisor or annuities.
Which of the following, if any, do you have? Total 28%
21%
29% 32%
Investments in stocks or bonds
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Millennials
Gen X
21% 21% 22% 23%
21% 17% 20% 25%
A long-term financial plan
Mutual funds
21%
Baby Boomers
16%
21% 25%
Financial advisor
55%
61% 57%
50%
13% 12% 9% 16%
Annuities
None of these
Future Financial Uncertainty—continued •
Less than 1 in 3 Americans has an emergency savings account.
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62 percent of Americans, including 72 percent of Millennials and 56 percent of Baby Boomers, do not have a retirement fund.
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More than half of Americans (53 percent) don’t have life insurance and 89 percent don’t have disability income insurance.
Which of the following, if any, do you have? 47%
Total
53% 49%
35%
38%
43%44%
Millennials
Gen X
45% 38%37%
28%
34%
32%31%29%34% 12%
Life Insurance Retirement fund
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Baby Boomers
Debt
Emergency savings account
6%
17% 12%
Disability income insurance
18% 14% 11%
22% 5%
A college savings account
10%13%
26%
22%19%
6% 9%
Long-term None of these care insurance
Current Financial Stability •
16 percent of Americans struggle to keep up with day-to-day expenses.
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Meanwhile, 32 percent are fairly stable, but just making ends meet.
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Only 10 percent have more than they need for themselves and their families.
Which of the following best describes your current financial situation? 32%
31%
16% 11%
I require financial assistance.
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10%
I am struggling to keep up I am fairly stable, but just I am fairly secure, able to I have more than I need with day-to-day expenses. making ends meet. make ends meet and have for myself and my family. some left over.
Status on Spending •
More than 1 in 4 (27 percent) Americans admit to living above their means, including 35 percent of Millennials.
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Less than half (44 percent) of Americans live exactly within their financial means.
In general, how far below or above your financial means do you currently live?
27%
29%
Above their financial means. Within their financial means.
Below their financial means. 44% 9
Status on Spending—continued •
The majority of Americans (57 percent) frequently purchase items they want but don’t need, with 67 percent of Millennials admitting to making purchases they don’t need.
How often, if ever, do you buy things that you want, but don’t need? 7% 12%
All the time Some of the time
36%
Hardly ever 45%
10
Never
Struggling With Finances •
Nearly one-third (32 percent) of Americans do not have an emergency fund.
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One-quarter of Americans do not have a long-term financial plan and 21 percent don’t have a short-term plan.
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65 percent of Americans admit to having struggled with their finances.
In which of the following ways, if any, have you struggled with your finances? 32% 35% 34%
29%
I do not have an emergency fund.
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Total Millennials Gen X 25% 28% 27% 24% 22% 21% 23% 21% 20% 17% 17% 14%
Baby Boomers 19% 15% 18%
11%
I do not have a long- I do not have a I spend more than I do not manage my term financial plan. short-term financial what I make. debt well. plan.
44% 35% 26%
30%
2% 1% 2% 4%
Other
I have not struggled with my finances.
Confidence in Financial Decisions •
Only 27 percent of Americans are very confident that they make the right decisions with their money.
How confident or not confident are you that you make the right decisions with your money? 53%
27% 16% 4%
Very confident
12
Somewhat confident
Not very confident
Not at all confident
GENEROSITY
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Earning With Purpose •
While half of Americans state that the purpose of the money they make is to protect their family’s future, 62 percent admit that the purpose of the money they make is to support the lifestyle they want to live now.
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More than 1 in 3 (35 percent) Americans think the purpose of the money they make is to give back—whether during their lifetime or after.
Which of the following describe the purpose of the money you make? (Select all that apply) 62%
50%
27%
19%
To support the lifestyle I To protect my family's To give back during my To give back after I'm want to live now. future. lifetime. gone.
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Earning With Purpose—continued •
The majority of Americans (71 percent) want to make more money to have more money, while 29 percent want to make more so they can give more.
Which of the following best explains your motivation to become financially secure?
29%
So I can have more money.
71%
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So I can give more money.
Living Generously •
71 percent of Americans (including 79 percent of Millennials) think they’re more generous than the average American.
Compared to the average American, how much more or less generous are you? Total 57%
15%
20%
59%
60%
Gen X
Baby Boomers
53% 24%
14%
11%
Much more generous.
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Millennials
30% 19%
20% 5%
Somewhat more generous.
Somewhat less generous.
2%
6%
5%
Much less generous.
Living Generously—continued •
61 percent of Americans would rather others call them ―generous‖ than ―financially successful.‖
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70 percent of women would rather be called generous, compared to 51 percent of men.
Which of the following would you rather be called by others?
Generous
39% 61%
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Financially successful
Importance of Giving Back •
In the past year, Baby Boomers have donated 12 times on average to a nonprofit organization while Millennials have donated 8 times.
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75 percent of Americans have donated money to a nonprofit organization in the past year.
In the past year, approximately how many times, if any, have you donated money to a nonprofit organization? Total
Millennials
Gen X
Baby Boomers
39% 25%
23%
28%
23%
30%
28%
31%
25% 14%
Never
18
1–3 times
13%
17%
4–5 times
38% 25%
27%
14%
6+ times
Obstacles to Donating •
When it comes to donating, Americans say the biggest obstacle is that they ―can’t afford to give.‖
Americans’ Top 3 Obstacles to Donating More Money to Nonprofit Organizations
42% Can’t afford to give.
23%
Already give enough to nonprofit organizations.
13%
Cant give enough to make a difference.
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Impact of Time vs. Money •
While not all Americans volunteer their time, they do recognize its importance: 59 percent think donating time makes a bigger impact than donating money.
What makes a bigger impact?
Donating time
41% 59%
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Donating money
Making More to Give More •
88 percent of Americans would give more to nonprofit organizations if they made more money.
I would give more to nonprofit organizations if I made more money. 43%
45%
9% 3%
Agree strongly
21
Agree somewhat
Disagree somewhat
Disagree strongly
Making More to Give More—continued •
59 percent of these Americans feel they’d need to make $5,000 or more a year than they already make in order to donate more.
Approximately how much more money per year would you want to make in order to donate more? Less than $5,000
27% 41%
$5,000–$9,999 $10,000–$19,999
21%
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$20,000 or more 11%
Volunteering Breakdown •
64 percent of Americans, including 70 percent of Millennials, regularly volunteer for a nonprofit organization.
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Church, and other religious institutions, is where the biggest percentage of Americans volunteer.
26%
Which of the following types of nonprofit organizations, if any, do you regularly volunteer for? (Select all that apply) 24% 19%
18%
17% 12%
10% 3%
2% A religious An organization that An organization that institution, such as helps those in helps children a church poverty
A school
An organization that An organization that An organization that An organization that fights disease helps the eldery helps the helps animals environment
Other
Which generation volunteers most?
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70%
63%
61%
Millennials
Gen X
Baby Boomers
FAITH AND FINANCES
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Financial Support From the Faith Community •
Nearly 1 in 4 (23 percent) Americans, including 38 percent of Millennials, have turned to a faith community, religious leader or faith-based financial education provider for financial advice.
Have you ever turned to a faith community, religious leader or faith-based financial education provider for financial advice?
Which generation is most likely to turn to their faith community for financial advice?
38%
23% Have turned to faith community.
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77% Have not turned to faith community.
Millennials
23% Gen X
12% Baby Boomers
Financial Support From the Faith Community
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1 in 5 Americans (21 percent) who self-identify as ―religious‖ think their faith community would give better advice than their significant other on managing daily finances.
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22 percent think they’d get better guidance from their faith community than their significant other during a personal financial crisis.
Which generation is most likely to turn to a faith community for advice on managing daily finances?
Which generation is most likely to turn to a faith community for guidance during a financial crisis?
27%
25%
24%
26%
Millennials
Gen X
Millennials
Gen X
14% Baby Boomers
18% Baby Boomers
Positive Impact of Faith Community •
Those who have turned to their faith communities are slightly more prepared for their future: 28 percent have a long-term financial plan, compared to 19 percent of those who have not turned to a faith community.
Those who have turned to their faith communities are more likely to have a long-term financial plan. Have not turned to faith community. Turned to faith community.
19%
28% Have long-term financial plan
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