Was It Only Just Dream? 1 Out of 3 Americans Believe American Dream Could Be Disappearing
Financial security and homeownership are at the heart of the American Dream, according to revelations in the latest State of the American Family Study released today by
The research study is based on a survey of more than 3,200 adults nationally representative of age, gender, race, ethnicity and education. The findings reveal that Americans are divided when it comes to their level of financial confidence and their ability to achieve the American Dream. With an average household income of
"Americans believe financial security is at the core of the American Dream, but it is alarming that so many think it is beyond their reach" said
In the red: Debt spurring Americans to act
The volume of debt in the
* 64% have a mortgage. Average mortgage debt is
* 56% have credit card debt. Average credit card debt is
* 26% have student loan debt. Average student loan debt is
Not surprising, more reported having student loan debt compared to when this survey was last conducted 5 years ago (22 percent in 2018 vs. 11 percent in 2013). Some good news: although a proportion of those who have credit card has held pretty steady (53 percent vs. 55 percent), the average amount of credit card debt has nearly been cut in half (
More good news: To help solve their debt problems, 70 percent are taking steps to improve their situation by prioritizing paying down debt. Other financial priorities include, saving as much as possible (66 percent) and developing a detailed financial plan (61 percent).
Despite taking action to prioritize their finances, more than a quarter wish they had better control of their finances.
Unprepared in case of emergency
The research found that if the worst did happen, many would not be financially prepared for it with at least six months of expenses saved in case of an emergency. Nearly one in ten (8 percent) have no emergency savings, and:
* 18% of Americans have less than 1 month of expenses saved if there was an emergency.
* 26% of Americans have 1-3 months of expenses saved if there was an emergency.
* 21% of Americans have 3-6 months of expenses saved if there was an emergency.
In other recent research* and indicative of Americans' community values, nearly seven in 10 Americans said community involvement is important to their overall well-being and nearly half agreed that being involved in communities improves their finances. In fact, more than half (53 percent) reported that they have supported someone in their community in a time of financial stress, and a quarter have been supported by others in their community during a time of need.
"Through our work in all types of communities across the
More insights and helpful financial tips
Helpful financial tips and an overview of research findings can be found at massmutual.com/familystudy
Methodology
The State of the American Family survey was conducted for MassMutual by Isobar
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