STUDY: AMERICANS STRUGGLE WITH MONEY, BUT FINTECH CAN HELP

According to a February 2016 report from Prosper Marketplace, nearly 60 percent of the population does not have financial freedom and many struggle to accomplish their financial goals.

In an effort to better understand the current state of financial wellness and Americans’ sentiments toward their financial standing, the Prosper Marketplace Financial Wellness Study surveyed 1,000 adults about their money habits and resolutions.

Overall, showed that amidst ongoing economic volatility, Americans are struggling to make ends meet, and few (only 29 percent) feel strongly that they are in control of their finances. Many do not have the financial freedom to enjoy life but improving financial wellness is a top priority for 2016 and beyond.

Here are some of the most interesting findings:

  • Only 29 percent of people feel very strongly that they are in control of their finances
  • Nearly 50 percent of people surveyed are living paycheck to paycheck
  • Nearly 50 percent said they could not absorb a financial shock. The group most likely to be impacted – Americans over 55 years old – are the most worried about their financial future. Millennials feel more secure in their finances;
  • Over 60 percent of Americans have credit card debt and two-thirds are going deeper into debt by not paying them off in full each month;
  • Debt relief is ranked a top priority for improving standing; closely followed by consistent progress in paying off debt (44 and 34 percent, respectively);

Additionally, the survey asked people about the impact of technology on one’s financial wellness. Here’s some of the findings:

  • 65 percent of Americans are currently using technology to improve their financial well-being, and those people say it’s making them feel more in control of their finances (84 percent);
  • The majority of respondents use between one and three applications to manage their finances, and most use those apps at least a few times a week
  • 18 percent of people who are not currently using online apps or sites for finances say they plan to do so.
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