The economy may be rising, but what about our personal finances?

Tuesday, July 13th, 2010 By

A busted piggy bank has littered the floor with ceramic fragments and spare change.

The recession may be on its way out, but personal finances remain in a shattered state, according to CFP survey respondents. (Photo: ThinkStock)

According to a recent survey by the Washington-based Certified Financial Planner Board of Standards Inc. (CFP), Americans anticipate that the national economy will be more likely to improve than decline during the next six months. However, as Bloomberg reports, the CFP study also shows that the majority of Americans do not have as much faith that their personal finances will improve. Developing a savings, financing college and preparing for retirement are all areas of great concern.

Personal finances don’t light up the headlines like recession busting

The CFP survey results indicate that 44 percent of respondents expect an upturn in the U.S. economy before their own personal finances, compared with 28 percent who believe a “double dip” recession will occur. CFP chair Robert Glovsky told Bloomberg that “Americans are generally hopeful, and much of the economic news leads us to conclude that we are out of the recession, and a double dip is unlikely.”

However, that hope largely does not extend into the arena of personal finance. Consumer confidence may be up while the declared unemployment rate was down .2 percentage points from May 2010 to June 2010 (it was 9.5 percent in June), but the CFP survey indicates that nearly two-thirds of Americans (65 percent) indicate that their worries over basic matters of long-term personal finance have grown significantly since the beginning of the recession. Many consumers believe they need cash now, but are frequently ineligible for a bank loan due to the still-tight credit market. Relying upon a bad credit personal loan is an alternative, but not one that has inspired consumers to view their financial futures in the most positive manner.

Worrying about the big three

The CFP survey, which was conducted via telephone by market research firm Penn Schoen Berland, found that the vast majority of the 1,000-member sample group of consumers ages 18 and older were afraid they wouldn’t be able to maintain sufficient savings, pay for college or have enough money put away for retirement. Adding to the worries surrounding their personal finances, 80 percent of respondents felt that Congress and federal regulators hadn’t taken an active enough role in pushing legislation to regulate financial markets. However, various media sources indicate a reform bill may pass through Congress soon.

Sources:

Bloomberg

CFP.net survey

How the Dodd-Frank bill would reform Wall Street:

Previous Article

« NAACP convention resolution accuses Tea Party of racism

At the NAACP convention this week, a resolution condemning Tea Party racism has led some Tea Party leaders to call the NAACP racist as well. tea party protesters holding a racist sign at a rally
Next Article

Senator says BP-Libya oil deal linked to Lockerbie bomber release »

A U.S. senator who wants Abdel Baset al-Megrahi back in jail suspects that a BP-Libya oil deal was tied to the Lockerbie bomber's release. wreckage of pan am flight 103

Leave a Reply

Other recent posts by Steve Tarlow

Payday loan alternatives are often more expensive

Many payday loan alternatives offered by banks and credit unions are just as – if not more – expensive than same day loans themselves…
a pile of pennies, nickels, dimes and quarters

Lansing Journal article shortchanges payday loan facts

The Lansing State Journal has added to the pool of uninformed articles attempting to scare people away from taking a payday loan. READ ON…
A woman peering through a magnifying glass, happy to have discovered something. Perhaps if the Lansing State Journal had used a magnifying glass when writing their recent payday loan scare piece, they'd see that they are missing lots of evidence.

Cash Store cannot bar class action suits, says Wisconsin court

A Wisconsin court ruled that contract language in the Cash Store's personal loans contracts cannot stop customers from joining class actions…
One of Cottonwood Financial LTD's The Cash Store locations. A Wisconsin appeals court has said personal loans contracts cannot prevent customers from their right to file or join class action lawsuits.