Thursday, October 31, 2019

Let’s face it. There’s a lot to stress over these days: the job, the kids, the state of the nation...the list goes on. But according to a recent survey conducted by CreditWise from Capital One, the No. 1 cause of tension in our daily lives is finances.

According to the survey, which focused on credit behaviors and attitudes, 73 percent of respondents consider finances a source of stress in their lives, even more so than politics (59 percent), work (49 percent) and family (46 percent).

That said, people are looking on the bright side: 42 percent of those surveyed expressed optimism, expecting to be better off financially a year from now, while only 10 percent expect to be worse off.

Financial stress varies according to demographics, with younger consumers experiencing a bit more tension when it comes to money:

Current Financial Climate for Younger Consumers

Finances are the biggest point of stress, particularly for younger consumers, with 82 percent of Generation Z and 81 percent of millennial consumers surveyed saying finances are a source of stress in their lives.

Millennial women surveyed are significantly more stressed about finances (61 percent said they find finances very stressful) than millennial men (47 percent).

Younger consumers surveyed are also the most optimistic, with more than half (53 percent) of millennials who responded saying they will be better off a year from now and only six percent expecting to be worse off.

Another source of financial stress involves the ramifications of a good credit score—how to maintain one and what to do about a not-so-good one:

Credit Score Literacy

51 percent of U.S. consumers report that they regularly check their credit score, while a quarter (25 percent) report they check when a bank or credit monitoring service suggests they do.

Despite the frequency with which U.S. consumers check their score, 29 percent admit they are not confident they would know what to do if they saw something strange on their credit report.

When it comes to specific life events that could impact one's credit score, U.S. consumers report feeling the most concerned about their credit score when buying a house (62 percent), buying a car (60 percent), going through a wedding or divorce (34 percent) and holiday shopping (33 percent).

More than half (59 percent) of respondents want to learn more about tips to improve their credit score.

Digital tools are consumers' preferred way to manage their finances with around half (51 percent) of those surveyed primarily using digital/online tools.

The good news is that there are plenty of ways to get help when it comes to financial stress. Online budgeting tools, savings programs and tips for improving your credit score are a mere click away. Talk to your accountant or financial advisor to get pointed in the right direction. 

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