Every so often, the COUNTRY Financial Security Index is released. It’s an interesting little survey that provides insight into how secure people feel about their financial situation.
Lately, as you might imagine, financial insecurity has been relatively high. And, even though financial worries can provide stress, it has encouraged better financial practices, such as paying down debt, using less credit and saving up more. So it is a mixed blessing that the financial security index has improved for the first time in more than a year. Here are two points the index makes about long-term financial confidence:
- There was a 14-point increase to 66 percent in the number
of Americans confident they will have the financial resources to send
their children to college, marking the most to feel confident in
education funding since August 2008.
percent are confident they will have the money to enjoy a comfortable
retirement, up seven points since August and the highest level of
confidence since February.
Additionally, younger people are feeling more optimistic about the future — more so than their older counterparts. Here is what COUNTRY says about that:
“It is understandable why those nearing retirement age are not
experiencing the same boost in confidence, since they have less time to
recover from set-backs experienced in the recession,” adds Brannan.
“This recession is a lesson for all of us that financial security needs
change at different stages of life, and we should periodically update
our plans as those needs change.”
In the end, how you feel often depends on your personal situation. If you want to be more secure in your finances, even during times of economic trouble, it is vital that you live within your means, build up your savings and emergency funds, and invest for the long term. While you can’t fully prepare for every eventuality, you can increase your chances of making it through when you plan ahead and live prudently.