Does America's impending "fiscal cliff" fall into the category of "do as I say, not as I do" when it comes to practicing prudent financial management?
Even as Americans exhort Washington D.C. to get its financial house in order to avoid a looming fiscal crisis, many of people admit to their own bad financial habits, according to the 2012 Bad Financial Habits Survey from Allianz Life Insurance Company of North America released today.
When asked to identify their own financial bad habits, 30 percent of respondents cited “not saving any money” while 18 percent indicated “spending more than I make.”
“Americans want Uncle Sam to address the economic issues that are affecting the country’s finances, yet it’s troubling that they’re guilty of many of the same poor spending and savings habits themselves,” Katie Libbe, vice president of consumer insights for Allianz Life, said in a statement. “It’s our hope that discussion about these topics will prompt more Americans to take action to secure their own financial future.”
Besides “not saving money” and “spending too much on things I don’t need,” other poor financial habits cited by of American consumers in 2012 included: saving some money, but not as much as I could (24 percent); not having a household budget (18 percent); spending more than I make (18 percent); don’t educate myself about financial planning (15 percent); pay bills late (12 percent); and only make the minimum payment on credit cards (10 percent).
Other financial vices cited by respondents included: playing the lottery/gambling (9 percent); not seeking professional help with my finances (9 percent); and not contributing to my employer-sponsored retirement plan (5 percent). Three percent of respondents listed their worst financial habit as “contributing to their employer-sponsored retirement plan, but not taking full advantage of their employer match.”
In contrast, 24 percent of survey respondents said they're not guilty of any of the bad financial habits presented to them in the poll.
Elsewhere in the survey, 44% percent of respondents listed unemployment as their top economic concern, followed by 31 percent who cited the impending fiscal cliff when the elimination of tax break cuts and mandatory government spending cuts kick in on Dec. 31.
Other economic events respondents identified as “most worrisome” included: home prices sales, cited by 11 percent of respondents, down from 15 percent in 2011; the volatile stock market, chosen by 9 percent, down from 10 percent in 2011; the European debt crisis, listed by 4 percent of respondents, down from 5 percent in 2011
Allianz Life Insurance’s survey of 1,000 respondents was conducted online in November by Ipsos. Allianz Life offers insurance and annuities in all states except New York, where products are issued by Allianz Life Insurance Company of New York.