Americans have gotten more financially cautious over the past 10 years, but they've also made major strides in feeling financially secure, according to a survey by Northwestern Mutual.
Also, more people feel “being financially prepared for the future” is one of the defining factors in being successful, the research found.
The “Planning and Progress Study” by Northwestern Mutual in 2009 and 2019 explored attitudes and behaviors toward money and financial decision-making as well as issues regarding attaining the American Dream. The original survey in 2009 included 1,289 people aged 25 and up. To mark the 10-year milestone, the study looked back at the original cohorts, now 35 years old and over.
The study found that financial security and habits have improved, with 71 percent saying they feel financially secure as compared to 47 percent who felt that way in 2009. Also, 88 percent said their financial habits are better, 73 percent said their financial situation is better, 74 percent said they are carrying less debt and 74 percent said they are more frugal.
In addition, 66 percent have set specific goals for the next five to 10 years, up from 57 percent in 2009.
Americans are more mindful of their finances, the report noted, adding that the financial crisis of 2008 seems to have left a deep mark on people’s lives well beyond finances.
The report found that as a result of the financial crisis, 37 percent of adults have become less comfortable taking risks today versus 18 percent who are more comfortable.
It also found that despite the prolonged U.S. economic recovery over the past 10 years, American optimism has remained essentially flat. The study found that 54 percent, down from 58 percent in 2009, agree the American Dream is attainable for most Americans.
Seventy-three percent believe a person can accomplish anything if they put their mind to it, down from 82 percent 10 years ago, according to the survey.
Sixty-five percent believe they will get to where they want to be in life, the same as in 2009; and 36 percent believe the U.S. is generally headed in the right direction, up from 27 percent.