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Nearly Half Of Consumers Don't Have Enough Savings To Live On For More Than A Month

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AUSTIN, Texas, April 1, 2014 /PRNewswire/ -- RetailMeNot ( www.retailmenot.com), the largest digital coupon destination in the United States, today released concerning findings from a personal finance survey conducted with The Omnibus Company ( www.omnibus.com) in honor of Financial Literacy Month. Nearly half (49%) of consumers surveyed lack confidence in their knowledge or understanding of their personal finances. This deficiency in financial literacy is likely a contributing factor to why nearly half (48%) of respondents do not have enough money saved to last them more than a month if they were to lose all sources of income.

RetailMeNot, Inc. logo.

"A large percentage of people surveyed report they are living without any sort of financial safety net," says Trae Bodge, senior editor for The Real Deal by RetailMeNot. "Saving money is just one part of the financial literacy equation. It is also important that consumers spend wisely to be able to afford the items they need. Making small adjustments to shopping behaviors, like utilizing discounts for everyday purchases, in addition to putting away even a small amount each month, are important steps toward achieving overall financial health."

Savings Silver Lining

Of consumers surveyed who have enough savings to last them more than a month without additional income (52%), the amounts are substantial—on average, they estimate their savings would last them over eight months (34 weeks) without additional income.

Even though some consumers have money tucked away, they may not be monitoring these funds closely. One in four (25%) respondents with a savings account do not know how much is in it.

  • More males than females (30% vs. 20%) are unaware of how much is currently in their savings account.

Lack of financial knowledge could help explain why many respondents are concerned about their financial future—as more than 3 in 4 (78%) worry that they will not be able to retire at the time and in the style they hoped for.

  • Those who are not married are less confident than those who are married (18% vs. 26%) in their ability to retire at the time and in the style they hoped for.

The survey shows consumers are open to taking steps to better manage their finances, but they want to tackle it on their own. Nearly 2 in 3 (64%) would consider developing a budget, and over half (52%) would be open to setting a specific financial goal for the future, but less than 1 in 5 (16%) would be likely to hire a financial adviser.

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