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Americans Less Optimistic About Financial Future
Less
Than Half of All Adults Think Things Will Get Better
Oct. 1, 2003 - New
research in 85 markets shows that 45.5 percent of all
adults are optimistic, at least in the short-term, about their
financial future but for senior citizens over 65 it is only 11.6
percent.
The percentage of
optimists in each of six age groups shows a significant decline from
the younger groups to the older groups:
> Among those who are
18-24, 58.6 percent are financial optimists
> In the 25 to 34 age group, 59.8 percent are optimists
> For the 35 to 44 age group, 52.4 percent expect to be better off in
six months
> For the 55-64 age group, the number of optimists drops to 35.1
percent.
> Among those over 65, just 11.6 percent expect to see their personal
financial position improve in six months
The MediaAudit/
International Demographics, Inc., study is based on the results of the
question "Do you expect to be better off six months from now?" The
study concludes, says Bob Jordan, co-chairman of International
Demographics, that "It's become apparent over the years that the
answer to this question is influenced by factors other than area
economics or even individual financial prospects."
For instance, fifty six
percent of the adult residents of Colorado Springs are "financial
optimists," the highest percentage in the 85 metro markets surveyed in
2002 by The Media Audit, vs. Pittsburgh, which has the lowest
percentage, 37.3. And the rationale goes like this:
African-Americans and
Hispanics have greater percentages of the financial optimists in their
groups than do Caucasians and Asians. In addition, younger adults,
ages 18-35, have a greater percentage of financial optimists than
older groups. In Colorado Springs 31.1 percent of the population is
over age 50 and 16.9 percent of all adults are African-American or
Hispanic. In Pittsburgh, 45.3 percent of the population is more than
50 years old and just 8.6 percent of residents are African-American or
Hispanic. Colorado Springs has the greatest number of financial
optimists in the 85 markets served by The Media Audit and Pittsburgh
has the fewest.
Jordan says, "...If we
were to apply the Colorado Springs/Pittsburgh analysis to the New York
City metro market we would expect NYC metro to have a level of
optimism higher than Colorado Springs. But it has fewer people over 50
and more African-Americans and Hispanics, so only 41.5 percent think
they will be better off in six months."
Markets with the
highest percentage of financial optimists are: Colorado Springs,
Atlanta, Charleston (SC), Columbia (SC), Memphis, Norfolk-Virginia
Beach, Jacksonville, Las Vegas, Reno, and Houston-Galveston, all over
50%.
And markets with the
lowest percentage of financial optimists are: Pittsburgh, Peoria,
Madison, Des Moines, Hartford, Buffalo, Wichita, Spokane, New Haven,
and, Columbia-Jefferson City (MO), all under 40%.
Race also has a
significant impact on financial optimism. Of the 17,968,000 African-
Americans in the 85 markets, 58.2 percent expect to be better off in
six months. Among Hispanics, 54.7 percent are optimistic while only
41.3 percent of Caucasians and 39.9 percent of Asians are optimistic.
Says Jordan, "African-Americans are still significantly less affluent
than the general population, but are steadily becoming more affluent
and that, we assume, is the basis for their high levels of financial
optimism."
> 32.3 percent of those
earning under $25,000 expect to be better off in six months
> When incomes are between $25,000 and 34,999 the percent of financial
optimists is 41.3
> In the $35,000 to $49,999 income bracket there are 46.3 percent who
expect to be better off in six months
> In the $50,000 to $74,999 bracket there are 49.4 percent
> Over $75,000 a year the percent is 52.6
> And over $100,000 is 54.4 percent
It comes as no surprise
to find that income impacts an individual's financial optimism. What
may come as a surprise is that the level of financial optimism among
the young, ages 18-34, is higher (59.3 percent) than it is among those
who earn $100,000 or more a year (54.4 percent). |
