It`s not news that Americans think a lot about money. They think about it more often than they do sex, and argue about it more often than they do religion, politics or their children, according to the latest Money Magazine survey.
Nonetheless, with all that thinking and arguing, money–or the lack of it –isn`t necessarily a source of unhappiness, the
survey concludes. Sixty percent of Americans say their standard of living is comfortable, and 55 percent say they are satisfied with their financial situation. But 89 percent say they are happy, indicating that something other than money must be the source of happiness.
Money Magazine`s fourth annual survey was conducted by Lieberman Research Inc., based on a nationwide sample of 2,555 adults who make the main financial decisions for their households.
In general, Lieberman Research found that most Americans are satisfied with their financial situation, with higher-income people predictably more so than lower-income people. Savings are up from 1985, but debt is too. The majority of Americans are worried about the growing federal budget deficit, and more people believe they`ve been hurt by Reagan administration policies than helped.
Over the next year, those surveyed appear to be optimistic that home values will go up, but even more believe thatoil and gas prices also will rise. Inflation, mortgage interest and unemployment rates also will go up, they believe. Stockholders believe that the value of their shares will increase.
And with all the discussion of professional financial planning, only 10 percent say they`ve hired an expert for advice on savings, investment or insurance, although most have consulted with a banker, insurance agent or the like. Only 15 percent say they`re willing to pay a professional for financial planning.
When those generalities are broken down by age, income and sex, the answers become more interesting.
Overall, 60 percent say they are comfortable. In households with income of $50,000 and over, 88 percent say they are comfortable, while 37 percent of households with income less than $15,000 say they`re comfortable. Of the higher-income group, 12 percent say their standard of living was not comfortable, and 63 percent of the low-income group say they are not comfortable.
Of the men who responded, 64 percent say their standard of living is comfortable and 55 percent of the women say theirs is. ”This may be a reflection of the fact that men earn more money than women do,” the study notes.
A more telling question asked whether people expected their financial situation to be better or worse in a year`s time. Overall, 50 percent predict they`d be better off, 39 percent expect no change and 11 percent believe that things will deteriorate.
In the $50,000-plus households, 69 percent predict they will be better off next year while with 51 percent of the low-income group also thought so. Only 16 percent of the elderly think they`ll be better off in a year, compared with 72 percent of people younger than 35. Fifty-five percent of the men are optimistic, compared with 44 percent of the women.
However, women and the elderly profess to be happy. Most women–60 percent–say they are ”fairly” happy, and 27 percent say they are ”very”
happy. Only 13 percent are not happy. Of respondents age 65 and over, 29 percent say they are ”very” happy, 62 percent are `fairly” happy and only 9 percent profess to be unhappy.
The unhappiest people, according to the survey, are those in households with incomes less than $15,000. In that group, 18 percent say they are not at all happy. But even there, 60 percent say they are ”fairly” happy and 22 percent are ”very” happy. Fourteen percent of the blue-collar workers and people in households with incomes in the $15,000-$24,999 range say they are unhappy.
”Happiness is related to people`s expectations about what the financial future holds for them,” the study concludes. ”If they expect to be financially better off next year, they are more likely to call themselves
`very happy` people. If they expect to be worse off next year, they are more apt to label themselves `not happy` people.”
The survey draws a distinction between ”thinking” about money and
”worrying” about it. A whopping 82 percent say they think about money often, but only 56 percent say they worry about it. Those who worry, predictably, are blue-collar workers and those earning less than $25,000.
One surprise is that the elderly–39 percent–worry less about money than any other age group. That compares with 65 percent of those people younger than 35; 59 percent of those between 35 and 49; and 51 percent of those age 50-64.
Checking accounts remain the most common place for depositing money, followed by savings accounts, certificates of deposits, individual retirement accounts or Keogh plans, money markets and stocks.
Most people–72 percent–say they are in debt, with mortgages accounting for the bulk of loans outstanding. But America`s love affair with the credit card continues to be strong, according to the survey, with 73 percent saying they`ve made a charge on a card in the last year.
More than a quarter of respondents in households earning less than $15,000 say they charged at least $1,000 on a credit card in the last year, compared with 84 percent of those in households with incomes of $50,000 or more.
Men charged more than women, with 48 percent saying they charged at least $1,000, and 23 percent saying they charged $3,000 or more. Thirty-five percent of the women say they charged at least $1,000, and 12 percent say they charged $3,000 or more.
