Americans are Stressed over Money and Not Saving Enough, Says Strategic Consulting Services

April 06, 2015 (PRLEAP.COM) Business News
New York April 6, 2015 Strategic Consulting Services (www.strategiccs.org), a New York firm providing financial advisory services for consumers reports Americans are more stressed about money and saving less. Recent reports show money is a significant source of stress for a majority of Americans, who also aren't financially prepared for financial goals like retirement. With more of Americans forced to work through retirement, America's planning and budgeting problems are bringing emotional stress that's also impacting physical health.

According to the American Psychological Association's Stress in America report money and financial stress is common across the nation. While financial stress has declined since a peak of 2007, many Americans say they struggle to achieve healthy living goals like eating and sleeping because of stress. Money is a 'somewhat' or 'very significant' source of stress for the majority of Americans (64 percent) and even more so for younger generations. Money is a significant source of stress for 75 percent for Gen Xers, 76 percent Millennials, and 77 percent for parents of children under the age of 18.

The stress gap is also noticeable between the classes and sexes. Women report a higher level of stress than men and lower-income households (making less than $50,000 per year) report higher levels of stress than Americans overall. Adults in lower-income households are twice as likely as those in higher-income households to feel stress about money most of the time. One in five Americans have considered skipping or have skipped necessary doctors' visits due to their finances. 29 percent say their stress about money is increasing and more than one-quarter of adults report feeling stressed about money most or all of the time.

Despite how Americans report their feelings about money, indicators show a negative outlook for our long-term financial health. The 2014 Retirement Confidence Survey by the Employee Benefit Research Institute shows that more than 35 percent of Americans have less than $1,000 saved that could be used for retirement, not counting their primary residence. In contrast, approximately 60 percent of Americans have less than $25,000 in total savings and investments for retirement. Less than half of workers have ever tried to calculate how much money they will need saved for retirement, a number that hasn't changed since surveys from 2003.

Americans' savings habit has declined over recent decades, with the average American saving now only four to five percent of their income a year. At this rate it takes the average American 25 years to save just one year's worth of living expenses. The statistic that 60 percent of Americans have less than $25,000 saved is especially significant when considering the average American owes $15,611 in credit card debt, $32,264 in student loan debt, and $155,192 in mortgage debt.

"Financial stress is something we all face, but where the gaps are growing tells us much about financial health. With so few focused on saving and building a nest egg for retirement, our economic problems are compounded by the concern about social security and retiring Baby Boomers. Savings for retirement requires sacrifice and it can't be pushed off. Those in their 20s to 40s who aren't saving today are losing the benefit of time compounding their money's value. What's most important however is to build a plan and then monitor your savings against your goals," says Ben Kittle, Senior Financial Consultant at Strategic Consulting Services. "We each can help reduce stress over money by building a plan and monitoring spending to help make better decisions. So many Americans unfortunately don't have a plan or even a monthly budget, and they spend their money on emergencies and whims and not on the bigger picture."

About Strategic Consulting Services
Strategic Consulting Services is a financial services firm with teams specialized in Debt Management, Mortgages and Business Services. With a comprehensive client-focused approach, the Company provides assessments looking beyond immediate financial issues to help clients build greater financial strength with smart habits and choices. Since 2007, Strategic Consulting Services has helped individuals and small businesses create savings plans, reduce debt, and make wiser spending choices. For more information visit www.strategiccs.org.

Share Article