Only 37% of US households confidently manage their personal finances

September is Life Insurance Awareness Month, and World Financial Group is bringing attention to the importance of including life insurance as part of a personal financial strategy. Understanding the value of life insurance and the options that best fit individual circumstances is key for individuals and families. With high prices and high interest rates, U.S. households continue to feel the strain and concern of not being prepared for the unexpected.

“Achieving financial confidence is vital for fostering a sense of security and control,” said Todd Buchanan, president of WFG, one of the country’s largest insurance agencies with more than 79,000 independent agents. “Life Insurance Awareness Month is another reminder that there’s work to be done to help families address gaps in financial security, including planning for the unexpected."

WFG is committed to empowering individuals with the knowledge they need to make informed decisions about their financial futures. Part of that commitment is hearing about financial needs directly from clients and the general population. Its independent Financial IQ™ study periodically assesses financial resilience among the U.S. general population, WFG insurance agents, and WFG clients. Findings in 2023 showed that 26% of U.S. households dipped into savings in response to the rising cost of living. The study also indicated that financial resilience is being eroded and prolonged pressure on households puts people at risk when another crisis hits.

In the study, financial confidence followed a similar trajectory. Only 37% of U.S. households were confident that managing their personal finances will help them achieve financial security in the future, down from 43% the prior year.

"Many American households continue to feel the impact of years of unprecedented economic strain," said Buchanan. “There is a gap in financial protection in the underserved middle-market community, a challenge our agents are committed to addressing. WFG is in the business of building and protecting financial wellbeing, and helping our clients prepare for their financial future with life insurance.”

Additional findings from the Financial IQ Study include:

18% of U.S. households have forfeited health care needs (e.g., routine checks ups, medications, etc.) due to rising cost of living. 

• The rising cost of living is forcing U.S. households to make significant sacrifices. Of the general population surveyed 48% said they could sustain basic outlays for no longer than three months if they were unable to work.

 

A third (36%) of U.S. households feel anxious or concerned about their current financial situation.

• 36% of the U.S. general population feel anxious about their current financial situation, 34% feel concerned, and 26% feel strained by their current situation.

• Taking steps to plan and manage money can help. 20% WFG clients indicated they are far less likely to feel anxious about their current financial situation and just 14% feel strained.

46% of U.S. respondents aim to be financially secure in retirement.

• Financial aspirations are deeply personal and tied to family life, ambitions, and values. Survey findings indicated 78% of WFG clients have a greater range of long-term financial ambitions and goals compared with the general population at 49%.

• 63% of WFG clients also indicated that they aspire to have peace of mind and that they can handle financial shocks, versus 43% of the general population.

Learn more about WFG's services and how their financial professionals can help ensure you have a financial strategy and protection in place to secure your short- and long-term financial future. Test your literacy and financial resilience to assess your understanding and confidence around finances at www.WorldFinancialGroup.com.