American financial confidence smallest since March

The financial confidence of American consumers has slid to its smallest stage in four months, states a brand new survey from However, most Americans still are not budgeting and monitoring their spending.

[B]Drop in Financial Security Index numbers[/B]’s Financial Security Index, released July 25, showed not only its smallest rate since March, it was also the largest year-over-year drop since August of last year. The United States economy maybe or may not be growing at a nearly imperceptible rate. However, it has not grown enough to make consumers feel any more off than they were a year ago.

There are five areas tracked by including job security, amount of debt, net worth, general financial picture and amount of savings. These areas all showed drops in the survey done of about 1,000 customers polled by telephone.

[B]The job security you want

The unemployment rate is still at over eight percent regardless of the truth that job security had the least decline of those polled.

Greg McBride is the senior financial analyst at He explained:

“Interestingly, despite another poor jobs report in early July, feelings of job security were the least affected and remain the component of financial security that Americans feel is most improved relative to one year ago. Just 19 percent of Americans feel less job security than one year ago.”

[B]Savings options[/B]

Savings was another problem since only 16 percent of American customers said they felt better than they did a year ago about their savings. About 40 percent said they were less secure than they were a year ago.

[B]Numbers with debt[/B]

About a quarter of those in the poll said that they felt more uncomfortable with their level of debt, which was up 18 percent in June. That means more Americans are overcome by debt.

[B]Those who are secure[/B]

About 28 percent of respondents reported a drop in their general finance security. Another quarter said they actually felt better with their situation now than they did in 2011.

The study concludes that the lack of wage growth is one of the largest factors preventing people from paying down debt, accruing savings and moving ahead.

McBride wrote:

<blockquote>“What’s really undermining consumer progress on financial security are stagnant wages. If incomes aren’t growing it’s difficult for people to make headway on debt and savings.”</blockquote>

[B]Focusing on finances[/B]

The bad economy is not the only issue. McBride explained that there are also issues with basic budgeting and tracking expenses.

“For a nation where just 1 in 4 households has an adequate emergency savings cushion, the fact that only 60 percent adhere to a fundamental behavior such as tracking expenses reveals a key weakness.”


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Thanks for the info

This is the reason why I believe we will be in for a repeat of 2008 sooner rather than later with the difference being the Fed has little left to throw at the problem.