experian financial blogger partners survey results

1

EDELMAN INTELLIGENCE

Experian Financial BloggerSurvey Report

September 2016

2

WHO HOW MANY ACCURACY WHEN HOW

Adults, Nationwide n=1,000 Margin of Error

= +/- 3.1%

Data Collection Occurred

August 2-9, 2016

Online Survey (Average of 13

minutes)

RESEARCH OBJECTIVE: Garner mediagenic data around experiences, knowledge and perceptions related to

personal finance.

Research Methodology

Note that throughout this report, total percentages may add up to 99% or 101% due to rounding.

3

Key Findings At first glance, respondents feel optimistic about their finances, but stress

surrounding income expectations, debt reduction and retirement investments prevents strong confidence in their financial future Nearly half (46%) have less money in their savings than they had expected; almost

three-quarters of respondents say they are behind in their retirement savings

82% of respondents hold some type of debt, and although most agree debt prevents them from living life to the fullest, only half actually feel comfortable talking about debt

Lack of income and funds are given as the main reason for financial woes, not respondents’ fiscal behavior

Financial education is key to debt reduction and savings Those that are comfortable with stocks and bonds invest in them; but 70%

do not currently invest and 41% will not invest in the future due to lack of funds and knowledge

73% say they need more resources to help them pay off their debt

PERSONAL FINANCE

5

Although people feel better off than last year when it comes to financial security, only 17% feel “very secure” when it comes to their personal finances

Q2. Today, how secure do you feel about your personal finances? Q3. Generally, do you feel more or less financially secure than you did last year?

How secure do you feel about your personal

finances?

8% 27% 47% 17%

Not at all secure Not too secure Somewhat secureVery secure

Do you feel more or less financially secure than you

did last year?

43%

32%

26%More secure

No dif -ference

Less secure

64% feel secure

6

Moderate priority

And although the majority feel confident in their ability to achieve financial goals, that confidence is soft

Setting aside money to start a family

Saving for education

Having disposable income

Setting aside money for retirement

Building up my emergency savings

17%24%

20%24%

46%33%33%30%

40%24%

15%12%23%

35%18%

31%40%45%

38%68%

Financial Goals

Q5. Below is a list of different financial goals. How much of a priority are each of these for you, personally? (Showing % Moderate/Top Priority)Q6. How confident are you that you can achieve your financial goals on your current income? (Showing % Somewhat/Very Confident)

Confidence in Ability to Achieve

Financial Goals

42%

22%

Somewhat confidentVery confident

• Nearly half (42%) only feel “somewhat confident” in their ability to achieve financial goals

• Top financial priorities are paying for basic needs, building up emergency savings and paying off debt

64%

0 Top priority92%

78%75%73%

64%64%

59%43%

36%32%

7

5% 21% 44% 30%

Never Rarely Sometimes Frequently

How often do you feel stressed due to your finances?

Q4. How often, if ever, do you feel stressed due to your finances or financial situation?

Most adults report feeling stressed due to finances at least “sometimes”

74% feel stressed due to finances at least

“sometimes”

8Q7. Today, are you earning more or less than you thought you would be 5 years ago?Q8. About how often do you think about needing to increase your income?

About how often do you think

about needing to increase your

income? Daily 37%Weekly 18%Monthly 17%Quarterly 8%Annually 9%Less than annually 6%

Never 5%

55% think about

needing to

increase their

income weekly or more

Are you earning more or less than you thought you

would be 5 years ago?

30%

30%

41%More

About the same

Less

Nearly half of respondents (41%) are earning less than they thought they would be 5 years ago• Most think about needing to increase their income on a daily or weekly

basis

9

Not Enough Income

Unexpected Bills

Cost of Living

Overspending on Unnecessary Things

Debt Payments

Other

35%

21%

13%

13%

12%

6%

Do you have more or less money in savings today than

you expected you would 5 years ago?

30%

20%

46%

5%MoreAbout the sameLessUnsure

Q22. Would you say that you have more money or less money in savings today than you expected that you would 5 years ago?Q23. Looking at the following list, what would you say is the biggest obstacle to increasing your savings?

What is the biggest obstacle to increasing

your savings?

• Nearly half (46%) have less in savings than they thought they would 5 years ago

Low income is cited as the biggest obstacle to increasing savings

BUDGETING & SPENDING

11

58%

42%YesNo

Q12. Do you use a budget for your personal / household spendingQ13. For what reasons do you use a budget? (Asked if they use a budget; n=XX)

Do you use a budget for your personal /

household spending?

Nearly half (42%) do not use a budget; those that do, use one to control their spending

To help me stop worrying about my finances

To track my progress toward achieving my financial goals

To keep me on track to achieving my long-term financial goals

To better understand my spending habits

To motivate me to keep saving money

To help me control my spending

35%

38%

40%

45%

46%

69%

Why do you use a budget?

12

58%42%Yes

No

Q12. Do you use a budget for your personal / household spendingQ14. What is the primary reason that you do not prepare a budget? (Asked if they don’t use a budget; n=XX)

Do you use a budget for your personal /

household spending?

Those who do not use a budget simply believe it is unnecessary for them

Don't know how

Not enough time

Ineffective

Unnecessary

16%

16%

23%

38%

Why don’t you use a budget?

13

Sticking to a budget is the top skill respondents say they wish they knew how to do better

How to qualify for a loan

How to make a budget

How to invest in stocks/bonds

How to increase my savings rate

How to stick to a budget

5%

9%

25%

26%

28%

Gaps in Financial Knowledge

Q9. What is one thing you wish you knew how to do better financially? Q10. Which of the following statements comes closest to your opinion?

39%

61%

Which do you agree with?I have a hard time finding

financial education resources

Financial education resources are readily available to me

• 39% say they have a hard time finding financial education resources

14

About half of respondents report making an impulse purchase at least monthly; the top motivation is finding a great deal

Never

Less than annually

Annually

Quarterly

Monthly

Weekly

Daily

5%

17%

7%

20%

28%

18%

4%

How often do you make an impulse

purchase?

Q15. How often do you make an “impulse purchase” – meaning how often do you make an unplanned decision to buy a product or service just before purchasing it?Q16. When are you most likely to make an impulse purchase? (Asked if they make impulse purchases)

When are you most likely to make an

impulse purchase?

If I want to impress someone

If I’m unsure of my budget

If I’m having a bad day

If someone encourages me

If I’m in a good mood

If I recently got a paycheck

If I find a great deal

7%10%

15%

20%

27%

29%

70%

FINANCIAL ACCOUNTS

16

Most respondents check their account balances on a weekly basis

Q17. Which of the following types of financial accounts do you currently hold?Q18. How regularly do you check your account balance(s)? (Asked if they have any type of account)

How regularly do you check your account balance(s)?

Quarterly or less

Monthly

Weekly

Daily

4%

18%

44%

35%

None of the above

Informal savings club

Brokerage account

Retirement savings account

Credit card account

Savings account

Checking account

5%

5%

19%

45%

63%

67%

88%

Which of the following types of financial accounts do you

currently hold?

17

None of these

Company reputation

Mobile / paperless banking offerings

Access to ATMs

Interest rates

Banking fees

Customer service

7%

9%

9%

10%

15%

23%

24%

What has the most impact on

satisfaction?

Q19. How satisfied are you with your current bank or credit union? (Asked if they have a checking or savings account)Q20. Which one of the following would you say has the most impact on your satisfaction or dissatisfaction with your bank or credit union? (Asked if they have a checking or savings account)

57%38%

6%Very sat-isfiedSomewhat satisfied Dissatisfied

Financial Institution Satisfaction

Bank satisfaction is high — 57% feel “very satisfied” with their current bank or credit union• Satisfaction is driven by customer service and banking fees

Saving and Investing

19

On average, respondents spend only 13% of their income on savings and investments

Q11. Approximately what percentage of your income goes toward…?

Other necessities Housing Other spending Savings and Investments

35% 33%

18%13%

Approximately what percentage of your income goes towards . . . (Showing average)

20

The most common recent major purchases include cars and vacations

Q21. What is the last major purchase you saved for?

What is the last major purchase you saved for?

Car

Vacation

House

Wedding

Other

I have not saved for a major purchase

29%

23%

13%

4%

5%

26%

21Q26. Do you currently invest in stocks or bonds? Q27. How comfortable do you feel with your investments? (Asked if they invest)

53%

33%

Somewhat ComfortableVery Comfortable

Comfort with Investing

30%

29%

41%

Yes, I cur-rently invest in stocks or bondsNo, but I plan to invest in stocks and bonds in the futureNo, and I do not plan to in-vest in them in the future

Do you currently invest in stocks and bonds?

70% do not invest in stocks and bonds and 41% said they do not plan on investing in the future

86%

22

Those that do not currently invest their money say they don’t have enough money to invest or don’t know enough about the market/stocks.

Q28. Below is a list of factors that may prevent people from investing in stocks and bonds. Which of the following factors are stopping you from investing? (Asked if they don’t invest)

Factors Preventing Investing

Don’t have enough money to

invest

Don’t know enough about the

market/stocks

Stocks are too risky

Don’t trust stock brokers/the

market

Don’t want to pay high fees

51%

43%

34%

21% 21%

23

The majority of respondents (71% total) feel negatively about their retirement plans.

Q24. Next, thinking specifically about retirement savings…Where do you think you currently stand as far as retirement savings? (Asked if they have not yet retired)Q25. Approximately how much money do you have saved for retirement? [OPEN-END]

52% say they “don’t know” how much money they have

saved for retirement

Where do you currently stand as far as retirement savings?

Series1

34% 37% 21% 4% 4%

Too Far Behind to Catch Up Moderately behind Right on Track Ahead of ScheduleEnough Saved to Retire Now

71% report being behind on their retirement

savings

DEBT

25

Less than one-fifth of respondents do not hold any debt, and many of them (38%) expected to have less than they do now

I do not hold any debt

Student loan

Medical

Car loan

Mortgage

Credit card

18%

19%

27%

31%

32%

49%

Types of Debt Held

Q29. Today, do you have more or less DEBT than you thought you would be 5 years ago? Q30. Which of the following types of debt do you hold?

38%

34%

29%More debt than I thought 5 years ago

Less debt than I thought 5 years ago

Same debt that I thought 5 years ago

Do you have more or less debt than you thought you would 5

years ago?

26

40%

29%

31%Higher SameLower

The most common type of debt— credit card debt — is primarily caused by lack of cash flow and overspending

Q33. What do you think the primary reason is for your credit card debt? (Asked if they have credit card debt)Q34. On average, would you say that your credit card debt is higher or lower than it was last year? (Asked if they have credit card debt)

Primary Cause of CC Debt

Average CC DebtCompared to Last Year

Don’t know; I’ve never se-riously addressed it

Lack of savings

Other

I don’t see having debt as a problem

Inability to reduce monthly bills

Overspending

Lack of cash flow

5%

6%

7%

9%

10%

27%

36%

• 40% say they have higher credit card debt than they did last year

27

76%

16%8%

How many times in the past year have you paid credit card

late fees?

Q35. Approximately how many times in the past year have you had to pay credit card late fees? (Asked if they have a credit card)Q36. How would you rate your current credit score?

1-3 times

0 times

4 or more times

28% 27% 20% 14% 7%

Excellent Good Fair Poor Bad

How would you rate your current credit score?

Most claim they have not paid any credit card late fees in the past year and rate their credit score as “excellent” or “good”

5% are unsure

28

Respondents believe their bill payment history has had the biggest impact on their credit score

26%

14%12% 11% 10%

9%

4% 3% 3%

What has the biggest impact on your credit

score?

Q37. What factor has the biggest impact on your credit score?

29

Nearly three-quarters (70%) agree that debt prevents them from living their life to the fullest

Q32. How much do you agree or disagree with the following statements? (Asked if they hold debt; n=XX)

I need more resources to help me pay off my debt.

I will never fully pay off my debt.

21%

23%

12%

13%

28%

23%

15%

17%

34%

26%

36%

33%

17%

28%

37%

37%

Strongly Disagree Somewhat DisagreeSomewhat Agree Strongly Agree

I am comfortabletalking about my debt.

Debt prevents me fromliving life to the fullest.

How much do you agree or disagree with the following

statements?

• 73% say they need more resources to help them pay off their debt; however, only about half (51%) say they are comfortable talking about their debt

COLLEGE COSTS

31

53%47%

How do you currently feel about your student loans?

My student loans are out of control; I am anxious about how I will pay them off

My student loans are under control and I am

confident that I will pay them off on time

Q40. How do you currently feel about your student loans? (Asked if they have student loans)

Those with student loan debt are split when it comes to their confidence about paying it off • Nearly half (47%) say their student loans are out of control and they are

anxious about how they will pay them off

32

Most believe that college is worth it, but there are stipulations

When is college worth the cost?

Q38. When would you say college is worth the cost?

If you go to a very prestigious school

If you go to an in-state college

College is never worth the cost

If you choose a major associated with high paying jobs

If you get a scholarship that pays for all or most of tuition

If you major in a field with a lot of job opportunities

College is always worth the cost

5%

10%

11%

18%

28%

28%

34%

• While about one-third say that college is always worth the cost, 28% say that it is only worth the cost if you major in a field with many job opportunities or if you get a scholarship

33 Q39. If you could go back in time and go to college all over again, what is the one thing you would do differently? (Asked if they went to college)

OtherGet an internship (or get more internships)

Go to a different schoolBe more involved on campus and in extra-curricular activities

Find a way to graduate with less debtGet better grades and/or learn more in class

Build a better network of contactsI would do nothing differently

7%12%

15%17%

19%20%21%

32%

If you could go to college all over again, what would you do

differently?

About one-fifth (19%) of those who went to college would find a way to graduate with less debt if they could do it over again

34

Two-thirds of those with student loans regret taking them out; they agree that student loans negatively impact their ability to save for large purchases

16%

11%

18%

19%

29%

31%

37%

39%

Strongly Disagree Somewhat DisagreeSomewhat Agree Strongly Agree

I regret taking out such high student loans.

Q41. How much do you agree or disagree with the following statements? (Asked if they have student loans)

My student loans negatively impact my ability to save for large purchases.

How much do you agree or disagree with the following

statements?

MONEY MANAGEMENT

AMONG SPOUSES

36

Although most married couples share joint accounts, only 30% split handling financial matters evenly

Q42. Which of the following best describes how you and your spouse maintain your bank and credit accounts. My spouse and I maintain… (Asked if they are married or living with a partner)Q43. How do you and your spouse handle finances? (Asked if they are married or living with a partner)

How do you and your spouse maintain your bank

and credit accounts?

Unsure

1 or more separate &

one or more joint accounts

3%

24%

24%

49%

My spouse handles all our finances

My spouse handles most of our finances

I handle all our finances

I handle most of our finances

We split it evenly

10%

15%

18%

27%

30%

How do you and your spouse handle finances?

37

Only half of married couples discuss financial matters weekly or more . . .

Q44. Approximately how often do you and your spouse … (Asked if they are married or living with a partner)

Daily Weekly Monthly Quarterly or less

16%

36%32%

16%

Talk about financial matters

Approximately how often do you and

your spouse…

Only 52% of married couples talk about financial matters

weekly or more

38

6%

14%16%

12%

7%

24%21%

Approximately how often do you and

your spouse…Disagree on financial matters

Q44. Approximately how often do you and your spouse … (Asked if they are married or living with a partner)

. . . But disagreement on financial matters between spouses is fairly rare • Over half (52%) disagree on financial matters only annually or less

39

Married respondents agree that managing finances is difficult, but they are comfortable talking it out

I am completely comfortable talking to my spouse about money.

45%

28%

3%

25%

27%

10%

21%

29%

26%

9%

17%

61%

Strongly Disagree Somewhat Disagree Somewhat Agree

Q46. How much do you agree or disagree with the following statements? (Asked if they are married or living with a partner)

It feels like my spouse and I disagree about finances all the time.

Before marriage, I never realized how difficult managing finances together would be.

How much do you agree or disagree with the following

statements?

• Nearly half (46%) admit that before marriage, they never realized how difficult managing finances together would be; virtually all (86%) agree that they are comfortable talking to their spouse about money

DEMOGRAPHICS

41

Category Subcategory %

GenderFemale 51%

Male 49%

Age

18-24 14%25-34 18%35-44 17%45-54 18%55-64 14%65+ 19%

Region

Northeast 18%South 39%West 21%

Midwest 22%

Race/Ethnicity

White 64%African American 13%Hispanic/Latino 15%Asian American 5%

Other/Multi-racial 3%

Category Subcategory %

Employment Status

Employed full-time 53%Employed part-time 20%

Self-employed full-time 7%Self-employed part-time 6%

Retired 4%Other 10%

Level of Education

Less than High School Diploma 5%

High School Diploma 38%Technical or Vocational

School 3%Some College 18%

College Graduate (4-year degree) 10%

Graduate or Professional School 25%

Marital Status

Single, never married 32%

Married / Civil partnership 40%Living together with

someone but not married 9%

Separated 2%

Divorced 12%

Widowed 4%

DemographicsRespondent Demographics

Totals may not add up to 100 due to rounding

APPENDIX

43

Only about one-quarter of respondents (28%) grew up in a household where finances were discussed frequently

Q1. Thinking back to when you were growing up, how often were finances discussed in your household?

Series1

10% 28% 35% 28%

Never Rarely Sometimes Frequently

Growing up, how often were finances discussed in your household?

• 38% of respondents are from households where finances were “never” or “rarely” discussed

44

Medical

Student Loan

Credit Card

Car Loan

Mortgage

32%

26%

24%

18%

11%

51%

50%

58%

73%

35%

9%

15%

10%

4%

19%

7%

10%

8%

5%

34%

Less than 1 year 1-5 years 6-10 years More than 10 years

Years Paying Off Debt

Q31. How many years have you been actively attempting to pay off each of the following types of debt? [Asked for each type of debt they hold among those who have started paying it off]

How many years have you been actively attempting to pay off each

type of debt?

THANK YOU