A new study says that two-thirds of Americans are reducing their spending due to the current economic state.
Wells Fargo recently published a study that was conducted and partnered with Versta Research to better understand Americans’ economic situation today. The study analyzed how Americans think, feel, and act regarding their financial status.
The study was conducted using an online survey based on 3,403 adults and 203 teenagers between the ages of 14 and 17.
In this study, Americans expressed their personal financial stories, how they were financially guided growing up, their personal goals, how finances impact their goals, and how financial conflicts have influenced their family lives.
ChulaVistaToday spoke with Emily G. Irwin, Managing Director & Head of Advice Relations, Advice and Planning Center of Excellence, Wells Fargo Wealth & Investment Management.
The Managing Director told us that Americans are heavily influenced by the public perception of success due to the possibility of being judged or viewed down upon.
“Americans are sharing with us that they have a love/hate relationship with money. It seems constant, and they can’t catch a break. They feel judged about how people view them, how they spend their money, how they invest it, and how much they pay for their homes, particularly with younger generations.”
According to the data gathered, more than half of Americans consider the economy a negative issue in their day-to-day lives and their long-term future.
Some of the most important findings are the following:
- Over half (56%) say they always worry about finances, even when they have sufficient.
- Half (50%) of U.S. teens confess they have lied regarding their financial spending.
- Over half of Americans (57%) admit needing a “mental reset” regarding their financial status.
- A significant majority of Americans (82%) consider finances more of a private topic, with the majority feeling reluctant to talk about their money.
Irwin says that social media could also be a reason why these numbers are concerning within the country’s younger demographic.
Platforms such as Instagram and TikTok, to name a few, are social media platforms that teenagers typically use to showcase their fashion sense and high-quality purchases.
“People feel judged because of the clickability,” she said. “It’s very easy to find out how much people spend on their homes, bags, and other things, making people feel like they are not doing enough.”
Another factor that Irwin thinks is impacting the American people is the topic of what defines “success” in life. In other words, perhaps many Americans are setting expectations too high to the point where they are setting themselves up for disappointment.
“For many Americans, money is very much an outward appearance of success,” said Irwin. “It’s an indicator of how we accomplish ourselves professionally and even personally. Americans are not looking at where they are financially today but instead at how far they are from their expectations, which can produce even more stress.”
Nonetheless, the Managing Director remains optimistic about reducing the negative and alarming data regarding how the country’s economy impacts personal spending “because Americans are now sharing that they have these sentiments regarding their financial situations.”