CLEVELAND, Jan. 6, 2020 /PRNewswire/ -- According to
the new Financial Wellness Survey from KeyBank, 75% of consumers
consider themselves financially savvy, with 41% stating they're
savvier than most or consider themselves an expert when it comes to
personal finance. Despite this, more than half (54%) admit they
have made a financial "faux pas"—referring to a money "false step"
or error—and impulse buying tops the list as the most common "faux
pas" among all consumers (25%).
Financial "Faux Pas" Infographic:
https://bit.ly/2SZCFBx
Financial "Faux Pas" Fact Sheet: https://bit.ly/39L2StO
"The path to financial wellness is rarely linear. Inevitably,
there will be setbacks, which often present new opportunities to
course correct. The important thing to remember is there are small
steps you can take today—like checking your account balance—that
will propel you forward to create a healthy, sustainable and
resilient financial future," said Chenna
Cotla, Behavioral Economist in KeyBank's Financial Wellness
strategy group.
The findings revealed financial "faux pas" related to budgeting
are the most common type of money misstep, followed by savings,
debt management, investing, and insuring. For example, nearly
half (47%) of consumers who committed a budgetary "faux pas"
reported they had fallen victim to sudden spending whims more often
than other types of budgeting "faux pas," such as spending beyond
their means or paying for subscription services that go unused.
Additionally, among those who made savings "faux
pas":
- 1 in 3 respondents didn't save for an emergency.
- More than 1 in 4 admit to spending their tax return.
- More than 1 in 5 admit to not contributing to retirement
savings.
"The truth is not all 'faux pas' are created equal," continued
Cotla. "Some false steps with finances may be common, but that
doesn't mean they aren't serious. In fact, 1 in 3 consider not
saving enough/waiting too long to save for retirement to be the
most severe of financial 'faux pas.' If not addressed promptly,
such missteps can be a slippery slope."
Financial Confidence Does Not Equal Immunity to Budgeting
Missteps
Interestingly, despite feeling more confident in their financial
know-how, younger generations more often have budgeting issues
compared to older generations. For example, 1 in 5 Millennials
consider themselves a financial expert, compared to fewer than 1 in
10 Baby Boomers. Additionally, 1 in 3 Millennials who committed
budgeting "faux pas" reported feeling afraid to check their bank
account, compared to 1 in 5 Gen-Xers and just 1 in 10 Baby
Boomers.
Bouncing Back from Financial "Faux Pas" May Take Less Time
Than You Think
The good news is a large majority of respondents who committed a
financial "faux pas" (89%) feel they can recover within five years.
In fact, most people (59%) prefer to face their financial
"faux pas" head on. Those who have made a financial misstep will
either turn to their spouse/significant other or a family member
for support (48%), investigate online resources (26%) or seek
counsel from a banker/financial advisor (22%). However, 22% don't
talk to anyone because they're either too embarrassed or aren't
sure who to talk to.
"Don't overlook the resources at your disposal, especially when
you have the option to build a financial team with your banking
partner. With the help of Key's Financial Wellness Consultants and
digital tools, for example, you can protect yourself from financial
'faux pas' in the year ahead," said Patrick
Smith, KeyBank's head of Financial Wellness & Retail
Strategy.
In fact, 65% say they are most likely to take these three steps
to prevent money mistakes in 2020:
- Identify and prioritize "needs" vs. "wants" (30%)
- Determine a monthly budget and revisit on a weekly basis
(22%)
- Educate themselves through financial literacy courses
(13%)
Continued Smith, "We're here to help you move forward on your
financial wellness journey, wherever you are along the way. We
encourage everyone to set up an appointment with their local
KeyBank branch to complete a Financial Wellness Review and
partner with their banker to make informed, confident financial
decisions. January is Financial Wellness Month across the
country–the perfect time to take charge of your financial situation
and avoid potential financial faux pas this year."
For additional information, articles and tips on getting your
financial life in shape, visit www.key.com/resolutions
About KeyBank's 2020 Financial Wellness Survey
KeyBank
partnered with Schmidt Market Research to survey 1,200 consumers
nationwide on topics related to financial faux pas. Respondents
were 18 to 70 years old with a checking or savings account who have
sole or shared responsibility for household financial decisions.
Survey responses were collected from October
14 -21, 2019.
About KeyCorp
KeyCorp's (NYSE: KEY) roots trace
back 190 years to Albany, New
York. Headquartered in Cleveland,
Ohio, Key is one of the nation's largest bank-based
financial services companies, with assets of approximately
$146.7 billion at September 30, 2019. Key provides deposit,
lending, cash management, and investment services to individuals
and businesses in 15 states under the name KeyBank National
Association through a network of over 1,100 branches and more than
1,400 ATMs. Key also provides a broad range of sophisticated
corporate and investment banking products, such as merger and
acquisition advice, public and private debt and equity,
syndications and derivatives to middle market companies in selected
industries throughout the United
States under the KeyBanc Capital Markets trade name. For
more information, visit https://www.key.com/. KeyBank is
Member FDIC.© 2019. KeyCorp. CFMA #191216-710657
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SOURCE KeyCorp