Our generation is facing financial challenges due to the rising costs of health care and education, diminishing employer benefits, and uncertainty about the future of Social Security. As the economy bumps along, more and more studies and surveys will be conducted to better understand how you feel.
In February 2008, the Gen X Money Mindsets Study was released by Schwab, one of the largest financial services providers. They commissioned the study in order to better understand and serve Gen Xers. The study of more than 5,000 Americans aged 25 to 40 revealed six distinct money mindsets:
- Paycheck to Paycheck - 25%
- Stressed out, pessimistic, and not confident about financial matters.
- Spend Now, Pay Later - 17%
- Optimistic, unrealistic, and incurring significant debt.
- Confident and Risk-Tolerant - 15%
- High income, active lifestyles, and fully engaged in their financial future.
- No Money, No Worries - 15%
- Low income, very optimistic, little trust of financial firms or advisors.
- Cautious Savers - 14%
- Financially conservative and concerned about money.
- Overwhelmed but Optimistic - 13%
- Significant debt, financially anxious, but positive about the future.
The study also identified some other interesting trends. Almost 45% of those interviewed said that they have too much debt to even think about saving or investing, and more than 35% feel they will be in debt for the rest of their lives.
What do you think about this study? Do you find yourself falling into one of the above categories, or is your mindset more complex? The data collected is significant, but I must say that I find it hard to fit myself into just one of the categories. I have felt confident, cautious, overwhelmed, and optimistic all in the same week. What about you? Do you use any strategies or tools to help you alleviate your financial anxieties?
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