Say Goodbye to the Picket Fence; “Peace of Mind” is the New American Dream
April 05 2017 - 10:48AM
Business Wire
Fifth Third Bank Survey Reveals Americans’ Top
Financial Goals
Gone are the days of defining the American Dream as a two-story
home surrounded by a white picket fence. Today, more Americans
value peace of mind than homeownership.
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Infographic: The New American Dream is
peace of mind
In fact, in a recent YouGov study commissioned by Fifth Third
Bank (NASDAQ: FITB), only 15 percent of Americans identified buying
a home as one of their top three financial goals. Instead, the
survey found top financial priorities include paying off debt
(43%), saving for an emergency (41%) and having a retirement plan
(28%). Even among non-homeowners, establishing peace of mind
through saving for an emergency (41%) and paying off debt (38%) is
a more significant financial target than homeownership (21%).
But despite redefining financial security as the New American
Dream, Americans aren’t making progress. Approximately 25 percent
report they aren’t contributing to their savings. And among
low-income Americans1, rates are even worse: 39 percent aren’t
saving at all.
What’s Standing in the Way
According to the U.S. Census Bureau, the median household income
rose in 2016 to $56,516, while the poverty rate decreased by 3.5
million people to 13.5 percent, the lowest it has been since 1999.
But this economic upswing didn’t translate to peace of mind for
most Americans; 73 percent cited at least one roadblock to
financial security. The three most common include:
- Not making enough money to be able to
save for emergencies (39%)
- Not making enough money to be able to
save for themselves (38%)
- Having too much debt (24%)
“The results of this survey give new insight into the
opportunities and obstacles Americans face when it comes to their
finances,” said Brian Lamb, executive vice president and chief
corporate social responsibility and reputation officer for Fifth
Third Bank, who analyzed the results of the survey. “With nearly
three in four Americans hindered from financial security, it is
important we commit ourselves to improving the financial quality of
life for consumers in the communities we serve.”
In addition to fear of debt – which Lamb attributes to vestiges
of the 2008 financial crisis – the YouGov survey indicated
financial knowledge may stand in the way of the American Dream… or
may at least have a hand in redefining it. Approximately 44 percent
of all Americans did not take any kind of financial education
courses in high school or college, even though nearly three in five
(54%) of those who did found the information helpful in managing
their finances today.
“These survey results underscore something Fifth Third has known
for a while: consumers are struggling to reach their financial
objectives,” said Byna Elliott, senior vice president and director
of Community & Economic Development. “That’s something we
really need to change. We can do better.”
What Can Be Done – Today
In November 2016, Fifth Third Bank committed $30 billion over
four years to lending, investments and community development in
low- and moderate-income communities within the Bank’s 10-state
geographic footprint – including a significant investment in
financial education for individuals at all ages and stages of life.
The Bank’s L.I.F.E. (Lives Improved Through Financial Empowerment®)
platform offers financial education programs for everyone from
fifth graders to adults, at no cost.
“There are three things an individual can do today to start to
achieve the New American Dream of financial security: plan ahead,
seek out savings and automate the process,” said Lamb.
- Plan ahead: Owning a home
doesn’t have to be your dream, but decide what it is, and create a
budget to support your goals. If creating a budget sounds like a
daunting task, try using a financial calculator.
- Seek out savings: Consider
expenses you could adjust to save some extra money. Can you
refinance your mortgage? Ask for a premium review from your
insurance provider? Dine out less frequently?
- Automate the process:
Automatically deduct savings from your income, and you likely won’t
even know it’s gone.
For more information about Fifth Third Bank’s financial
empowerment and education modules, visit
https://www.53.com/financial-empowerment/.
About Fifth Third Bank
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. As of December 31, 2016, the
Company had $142 billion in assets and operates 1,191 full-service
Banking Centers, including 94 Bank Mart® locations, most open seven
days a week, inside select grocery stores and 2,495 ATMs in Ohio,
Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West
Virginia, Georgia and North Carolina. Fifth Third operates four
main businesses: Commercial Banking, Branch Banking, Consumer
Lending, and Wealth & Asset Management. As of December 31,
2016, Fifth Third had a 17.9% interest in Vantiv Holding, LLC.
Fifth Third is among the largest money managers in the Midwest and,
as of December 31, 2016, had $315 billion in assets under care, of
which it managed $31 billion for individuals, corporations and
not-for-profit organizations. Investor information and press
releases can be viewed at www.53.com. Fifth Third’s common stock is
traded on the NASDAQ® Global Select Market under the symbol “FITB.”
Fifth Third Bank was established in 1858. Member FDIC, Equal
Housing Lender.
Study Methodology
All figures, unless otherwise stated, are from YouGov Plc. Total
sample size was 3,380 adults. Fieldwork was undertaken between 7th
- 10th March 2017. The survey was carried out online. The figures
have been weighted and are representative of all US adults (aged
18+).
1 For the purposes of this survey, low-income is defined as
Americans whose total household income is less than $40,000 per
year and $10,000 in assets.
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version on businesswire.com: http://www.businesswire.com/news/home/20170405005907/en/
Fifth Third BankStacie Haas,
513-534-5113Stacie.Haas@53.comorSamantha Molony, 513-271-7222 ext.
27smolony@wordsworthweb.com
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