Highlights From the FINRA Foundation National Financial Capability Study slide image

Highlights From the FINRA Foundation National Financial Capability Study

Financial Capability in the United States ▸ While people's ability to make ends meet has improved over the years, patterns of spending relative to income have not changed. In 2021, roughly one in five reported that they spend more than their income, 34 percent indicated they spend about equal to their income, and 43 percent said they spend less than their income. These percentages have remained consistent across all five NFCS waves. Spending vs. income Spending more than 20% 19% 18% 19% 19% income Spending about equal 35% 36% 38% 36% 34% to income Spending less than income 42% 41% 40% 41% 43% 2009 2012 2015 2018 2021 Note: Individual bars do not sum to 100 percent because the percentage of respondents who answered "Don't know" or "Prefer not to say" are not displayed. ► The percentage of respondents who always pay their credit cards in full has increased steadily over the five waves of the NFCS to nearly 3 out of 5 respondents (59 percent). In the past year, I always paid my credit cards in full (among respondents with credit cards) 59% 49% 52% 54% 41% 2009 2012 2015 2018 2021 Because self-reported home values are often inaccurate-making it difficult to calculate the exact amount of equity respondents have in their homes—the NFCS uses a simple measure of home equity that asks participants, "Do you currently owe more on your home than you think you could sell it for today?" In response to this question, 7 percent of homeowners reported being "underwater" in 2021. Though this figure does not differ substantially from 2018 and 2015 (9 percent), it continues a gradual recovery from the collapse in home values during the Great Recession.³ < 4 > Highlights From the FINRA Foundation National Financial Capability Study
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