E-mail updates
Follow on Twitter
Subscribe to RSSOne in five Americans is burying his or her head in the sand when it comes to managing personal finances, a report by Javelin Strategy & Research has shown.
Even though the recent financial crisis and ensuing recession has made it more important than ever to carefully track where our money is going, the number of Americans who say they don’t check their finances at all -- whether on a bank’s Web site or using personal finance software like Quicken -- has more than doubled, rising from 8 percent in 2009 to 19 percent in 2010, the report shows.
Javelin even found that those of us who do check our financial situations regularly using a bank’s Web site, a spreadsheet program like Excel or by logging on to a financial institution’s Web site are doing so less often.
The number of survey respondents who used a bank’s Web site is down from 59 percent in 2009 to 46 percent in 2010, while the even the number of Americans who said they use a simple pencil and paper to check their finances fell from 50 percent in 2009 to 46 percent in 2009.
“When your 401(k) is turning into a 201(k) we find that people just don’t want to open that [statement] envelope,” said Mark Schwanhausser, a senior analyst at Javelin and the author of the report. “We’re finding the same thing is happening when it comes to personal finances.”
The report’s findings have important policy implications for America’s financial institutions, said Schwanhausser. They need to make sure they are doing a better job of giving their online customers the ability to track their finances more effectively, he said.
“Right now, most banks don’t do that well, but there’s an opportunity here for them to make their online tools more practical, to show you how much you’re spending each day and what you’re spending your money on. It needs to be more of a Mint-like experience,” said Schwanhausser, referring to the popular online financial management Web site.
“The more information you have, the easier it is to make smart decisions about your money,” he added.
(Thanks to WalletPop for pointing out the report.)
Leave a Comment:
People still have money to worry about?? Must be nice, I am pretty sure everyone is getting poorer and poorer from what I can see.
Why be responsible with your finances when you can sit around and wait for the next handout? It worked for those that are "too big to fail"... of course they had us to bail them out. I suppose the lazy citizens have our grandchildren to pay their way, as long as government keeps borrowing from the future.
Times are tough and banking is even tougher.
Who would want to look at a bank statement where you made $1.00 in interest and paid $5 for that ATM withdraw or the teller fees. Now it costs money to put money in the bank.
Amen.
why would anyone except a wallstreet banker or investment greedhead want to look at their bankstatement?
For most of us, it's depressing or self-defeating
Exactly! That's one of the main reasons I avoid looking at my finances. It always makes me depressed. Ignorance is bliss!
Well I feel very bad reading all this. Did you people know that there is a such a thing like credit unions. They usually do not charge bunch a fees (because they are not for PROFIT) and if they do they charge minimum. So before you hand your money to some bank try checking out your local credit union and you might fell better. No fees, nice access to the account on the web and all sorts of nice services. They are totally no depressing.
Yea, and their not as evil as people who make a profit. I mean, when you guys go to work, you don't ask to be paid for it right?
What 'work' did they do exactly? You do realize (I doubt) with fractional reserve banking 90% or more of the money never existed. This money was never really loaned, it never belonged to the bank, and they have the gall to ruin peoples lives when they have lost their jobs, lost their futures. Of course the consumer, screwed by 40 years of pro business and anti worker legislation, is going to be depressed with constant reminders of debt or alleged debt. Even reduced income can be depressing as the article says, when $40,000 in your 401k went to $15,000 overnight thanks to the wild party the banks had the last 10 years.
We've seen that those of us who are responsible will simply be played as chumps. Other people have lived for years for free in houses they could never afford, have collected unemployment while sitting on their butts for years, have come here illegally and been given free health care and college educations -- we're tired of playing by the rules.
Screw it.
Congress just gave themselves a raise and they along with the bankers are the only ones who can check their statements. The rest of us are living pay check to pay check.
The government has to stop giving favors out just because they have friends who want an opportunity too. If that person did not earn it then they should not get it!!!
Stop doing the friends help friends only model for this counrty it's skrewing all of the people who are trully deserving.
In other words if you are a faker and don't do Sh#t don't expect Sh#t!!!
That includes members of congress.
What also kills me is that Charles Rangle was just found guilty of ethics violations but nobody said anything when Cheney was breaking laws left and right and nothing was done. Don't you fools think the American public can see through your BS??? Don't pick and choose when you want to throw one of your mates under the bus.
kc - for a hard-working American, you seem to have a lot of time to troll the blogs all day. I'd be willing to bet a lot of that income is capital gains that you pay 15% tax and no SS/Medicare on. Unlike us working stiffs, who pay 7.65% SS/Medicare AND income taxes. Welfare for the non-working, I call it.
Oh wow, are you that creep that keeps peeking in my window?
Since you don't know me, what I do for a living, or how much I pay in taxes, I'll just assume you're a troll and put you on the ignore list.
Just tried to get a loan from USAA for a motor home. I was told that even if I used it as a primary residence that they would only loan me 10-15% DTI this means that I could only have a payment of about $250.00 a month. This works out great if you are an officer but if you are enlisted it will not even buy you a card board box.
My advice to all enlisted is put your money in a commercial bank.
This kind of mind set is what got us into the current position...
People didn't care what they spent.... hey, I've got room on the card, buy it...
I deal with the ARM when it kicks in....
I can get unemployment.
You would be surprised how many people cant even do a simple budget.
Did I miss the news about all the people responsible for the sub prime mortgage fiasco being strung up on the whitehouse lawn? Oh, they all got away with it. Well never mind.
Yep, pjam09, I guess you are the only one who worked for their money. You folks slay me with your constant blame the victim approach to every problem/issue.
Well - to hell with all the blues. I'm still alive, still kicking, and still keeping track of where my money goes. Built it myself with a little Excel dexterity.
And I do have new rules. If they got a bail out - they ain't on my shopping list. If their profits cause me to gasp - they ain't on my shopping list.
The Banks and the WS Casino get none to little. Cash. Talks.
I agree with you whole heartedly. The government officials and the bigwigs want us hardworking middle class (if even exsist anymore) individuals to be patriotic, buy american and "do the right thing" while they constantly steal, cheat, lie, and not to mention take all the businesses to other countries so that a handful of CEOs can make $100 million (who in the hell makes $100 million dollar decisions by themselves?)
In saying all of that, my spending habits and loyalty are also limited!
Being "under water", as the house financing banks call it; if I can do it, I will keep very close track on what's happening with 'MY MONEY!'
Americans are just giving up, why worry about finances when they feel they can do nothing about it. THats the whole problem, people before them had no idea about finances and look were they are not, houseless and some don't even have a job. The rest of Americans feel the same way and feel what are they going to do, take my house away. That is why consumer confidence is at rock bottom. Everytime they get ahead, the government finds way to take it back. Americans need to realize, in order to stay ahead, you must keep up to date with your finances. Just today, I saved $50 on my homeowners insurance. I stay on top of every bill I have and look for ways to save money anywhere I can. I hope Americans don't give up on their finances and start taking them seriously.
Screw the banks. Keep your money at home and get a shot gun.
I remember having money. Back when I had a job, and the unemployment rate in my county was not above 12%. All that education and busting my butt to try to get ahead must have been "the good old days" because now I've got nothing to show for it and my house is being foreclosed. Can't wait to live on the streets. Maybe if I turn to crime, I can get a bailout, too.
Jackass
I balance my checkbook twice a month, always have. Quicken just makes it easier. I pay attention to my budget and pay my bills on time. That's why I have a top credit rating even though I don't make a lot of money. I have friends who make more than I do who have had to borrow from me because they ran out of money before they ran out of month. If you don't take care of your finances you're just asking to get in trouble. Banks make mistakes too and you won't catch them if you're not watching.
Considering how relatively financially illiterate most Americans are anyway, this is an even more depressing situation. Magical thinking will save the day, I suppose.
My wife and I were on the brink of bankruptcy during the early 90s recession, but we decided we wouldn't go that route, that come hell or high water, we wouldn't just give up, give in, and walk away. We worked, sometimes three jobs, and we scrimped and sacrificed. We aren't rich by any means today, but we have a cushion, we didn't stiff our creditors, we have no credit card debt, and we live comfortably. Yeah, it sux that the Wall Street crooks got away with so much, but neglecting your own finances won't bother those crooks one bit. But it will eat away at your own integrity. Resist the urge. There's ALWAYS something you can do.
Well said bagboy,when I started reading this post,I was ready to let go on a tirade also, but after reading your comment, it changed my perception of the situation. You are right on the money(pardon the pun). There is always something you can do the most important of all is to pray!
pjam09, I am happy for you that you can maintain a position so far above the rest of us serfs.
kc-2656817, Anyone who has unemployment didn't sit on thier butt to get it. Unemployment isn't a government hand out. Get your facts straight. Oh I dare you to seek out all these folks without a job and call them lazy. Let me know how that works out for you.
If you can't see who the real big thieves are then your blind.
Someone here said it best, the working class are chumps. We keep trying to play by rules that were designed to feed the ones above and stand on the backs of the people below. We've always thought it to ourselves, but now we're saying it out loud more often. It's simple... we don't try as hard to keep track of our money because there's not enough of it left to drain our energy on. The only people who really wish you would worry about it more are banks because it gives them the chance to squeeze some of it out of you while you waste your time trying to "make it". Haven't ya'll noticed the bank advertisement that was obstructing your view as you tried to read the article? WISE UP!!
Perhaps I will check my finances more often when the person who wrote this article checks their work. See fourth paragraph.