A new survey by personal finance platform Unbiased has revealed some troubling gaps in the population level of Americans when it comes to financial literacy, their confidence in the retirement planning, and a mediocre financial education while they were at school.
Unbiased’s 2023 Unbiased Financial Confidence Survey revealed that only 33% of adults in the US consider themselves confident in their financial knowledge, and a further 17% say they do not feel financially secure at all. When asked why they lacked confidence, 29% mentioned that they had not been taught financial matters in school. Even with this data, more than half of all consumers said they would be too intimidated to seek financial advice, even if they needed it.
The survey also revealed that, despite their dominance in the media, financial terms and products, such as NFTs and cryptocurrencies are misunderstood by a large percentage of the US population. Worryingly, most consumers don’t feel confident in their retirement planning or budgeting abilities.
“When it comes to our physical health, we rely on medical experts for recommendations to keep us on track, but unfortunately, that mentality is not the same regarding our financial health. While almost half of US residents find financial issues complex, an even higher number are too intimidated to seek financial advice,” said Karen Barrett, founder and CEO of Unbiased. “In addition to being intimidated, many say they don’t seek the opinion of a financial advisor due to perceived cost, lack of assets, or because they don’t know who to turn to.”
The highlights of the survey revealed that:
– 33% of consumers feel somewhat confident about financial decisionsand 17% say they don’t feel confident at all.
– When asked to choose three financial areas in which they felt most secure, respondents mentioned savings (53%), banking (47%) and credit cards (42%). Only 21% felt confident about retirement planning.
– Respondents mentioned that they felt less confident (36%) about retirement planning and pensionsin third place behind cryptocurrencies (44%) and the stock market (47%).
– 29% felt that their lack of financial confidence was due to not being taught about it in school, while the 47% mentioned that the products are too complex.
– Regarding what may prevent them from seeking a financial adviser, 44% stated that their services cost too much, 26% felt they did not have enough assets and 23% responded that they did not know where to find support.
As a personal finance information portal, Unbiased.com offers free guides, tools, insights and information on topics ranging from buying a home to investment trends and insurance.
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