Debt levels, economic concerns forcing Americans to make tough choices
Anxious Americans feel the need to choose — financially speaking, that is.
According to a new survey by diversified financial services provider Thrivent, concerns about the economy and rising levels of personal debt have an increasing number of Americans feeling pressured to prioritize their financial needs.
Most notably, Thrivent’s 2023 Financial Crossroads Survey found 53% of respondents would take a job working harder and longer hours to make and save more rather than making less money, but having more free time to do what they love (47%). The study also showed that 56% of respondents would save money for their children’s college over saving for their own retirement (44%).
Additional trade-offs showed that 73% of Americans would invest bonus money for the future over splurging on a vacation (27%). And 75% would save for their own retirement over funding their parents’ extended care (25%).
When it comes to their personal liabilities, the report said 42% of Americans would choose to pay off their debt if they received an unexpected large sum of money, far outweighing the other choices presented to them, like investing for the future (22%), making home improvements (6%), traveling and experiences (5%) or donating to a charity (3%).
When it comes to choices related to his clients’ financial futures, Andrew Fincher, financial advisor with VLP Financial Advisors, says he categorizes goals into “needs, wants, and wishes.”
“The needs are nonnegotiables, such as retirement monthly expenses, medical, recurring future car purchases and so on. From there we work over to vacations, paying for education or weddings and that type of expense, and then we work to legacy in wishes. If there’s a shortfall we cut from the wishes
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