Woman was nervous about her funds.
While adults have at all times been concerned about having enough retirement savings and emergency funds, young adults are increasingly concerned about becoming homeless. Acornsa number one savings and investing app, today released its 2024 Money Matters Report™, which make clear Americans’ current financial concerns. The report shows that a few third of Generation Z and Millennials (29% and 32%, respectively) fear their financial situation may lead to homelessness, nearly 3 times higher than Baby Boomers and older respondents (11%). .
The principal reasons for this fear and the highest three financial worries of adults are cost of living, inflation and debt. In addition, over 1 / 4 of Americans surveyed (27%) have never had an emergency fund. Noah Kerner, CEO of Acorns, explains that this fear is comprehensible. “If you are worried about losing your job or not having enough income to fight inflation and not being able to borrow money at reasonable interest rates, then worrying about not having a home doesn’t seem to be taboo.” In fact, the Department of Housing and Urban Development (HUD) counted 653,104 homeless Americans in its 2023 Point in Time report, which measures homelessness within the United States on a single night each winter. That’s a 12.1% increase from the identical report in 2022.
Adding to those financial burdens are concerns about macroeconomic problems. More than half (52%) of respondents expressed concern concerning the impact of world wars and conflicts on their financial security. 25% said they were “extremely worried” and just 8% said they were “not worried at all.” The rise of AI and climate change are also impacting financial security, with 39% and 42% respectively expressing concerns about financial security.
“Between global conflicts, AI and climate change, we live in a time that feels uncertain and unstable. These problems are coming at us from all directions and it is a natural consequence that people have increased levels of anxiety,” Kerner says.
While the 2024 Money Matters Report shows an increase in uncertainty, it also confirms the impact of early financial literacy education on future financial security: Two-thirds of Americans say they might be higher off today in the event that they had more financial literacy earlier in life would have. Additionally, Acorns customers and individuals who use financial planning tools reminiscent of Acorns and/or financial advisors are significantly more optimistic about their expected future financial security than the broader survey pool.
Nearly 1 / 4 (23%) of American adults say they didn’t receive financial education as children, and two-thirds (66%) of people that didn’t receive much financial education consider their financial security can be higher in the event that they did they might have received more financial literacy as children. Generation Z (72%) and Millennials (75%) are significantly more more likely to say they might be higher off today, which is especially interesting since these generations also reported receiving more financial literacy education than older generations.
Kerner believes that financial education is crucial because knowledge gives you power. “Because it’s not taught in schools, most grow up without the basics necessary to manage their personal finances.” He explains that that is why Acorns places a lot emphasis on education and advice. “We want to inform at the moment of decision-making so that our users are actively learning.”
According to the report, these fears will proceed, as only 35% of respondents expect to be financially safer next 12 months than they are actually, while most individuals (44%) expect their financial security to be concerning the same .
