This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

We're Facing Up to Our Financial Hangover

NEW YORK (TheStreet) -- Americans are waking up to a long financial hangover from the Great Recession, and despite some good economic news of late, don't like what they see when they look in the mirror.

Analysts at Financial Finesse, an El Segundo, Calif., financial wellness services provider, call it an "awakening," and that's probably the best description of Americans realizing they may never meet their lifetime financial goals and have no control over their finances.

The good news? Financial Finesse reports that Americans have largely stopped blaming the economy for their financial troubles and are deciding it's up to them to cut spending and boost savings.

Liz Davidson, CEO and founder of Financial Finesse, says the initial shock from the Great Recession has largely worn off, and while major damage was done, workers see it as their "personal responsibility" to take back control of their finances and savings.

"Now that the economy has stabilized for the most part, employees are taking the opportunity to assess their situations in more detail," Davidson says. "They've stepped on the financial scale, so to speak, and are going 'Wow, this is worse than I thought.'"

"This is a good thing even if it is causing them to feel more stress over their circumstances, because they seem to recognize that they can no longer point to the stock market or the economy as the reason for their discomfort; they're taking action to address their vulnerabilities through factors they themselves can control."

Actually, the level of financial anxiety among Americans is rising, Financial Finesse says. Just 18% of adults reported high levels of financial stress in 2012, but that jumped to 23% last year.

Some other key data:

Fewer blame the economy and markets. Only 43% of Americans cite the economy or the financial markets as a chief source of stress, down from 47% last year. (That could be because the economy is improving slightly, and because the stock market has largely performed well in recent years.)

More people worry they won't meet financial goals. Adults who say they worry because they can't meet financial goals such as buying a home, saving for college or saving for retirement rose to 42% last year from 35% in 2012.

Women worry more. Women see their financial predicament in darker terms than men, wit 27% of women reporting high levels of stress compared with 17% of men last year.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs