New Allstate Financial "Life Tracks" poll reveals divide in American abilities to make ends meet
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A little more than half (59 percent) of Denver area residents say they have enough money left over at the end of the month after paying for essentials according to the new, second installment of Allstate Financial's "Life Tracks" poll. Additionally, 34 percent are living paycheck-to-paycheck while another four percent say they don't earn enough each month to pay for essentials. In the late December 2012 survey that polled 18 cities across America, responses pointed to an overall lack of financial management skills and resources, but an over-confidence in their abilities to manage their personal finances.
"Like the rest of the country, Denverites are torn between their desire to stay optimistic and the reality of their actual financial situations," said Jeff Healy, Regional Financial Sales Lead. "As we continue to push ourselves to do better with the start of each New Year, we also need to be realistic and seek help in making careful steps to securing our futures."
In Denver, respondents stood out from the rest of the nation in several of the survey responses. While most of the results were consistent with the national survey, these few rang true for the residents of Denver:
When asked how their personal financial situation compared to other people like them, such as friends, neighbors and co-workers, only 25 percent of Denverites said their situation was better, whereas 30 percent of national respondents answered the same.
However, when prompted to think back to their family's financial situation when growing up, 64 percent of Denverites responded their personal financial situation now compares better. Nationally, 52 percent of responders feel their situation is also better.
This second Allstate Life Tracks poll examined overarching themes as well as unique traits Americans possess across the different "life tracks" experiences (see www.allstate.com/financial). Nationally, the poll revealed four themes that emerged consistently across all "Life Tracks:"
Divided we stand: The split between those with money left over after paying for expenses and those that don't is reinforced by findings from the poll. An even 50 percent of American respondents feel their personal financial situation is "excellent" or "good," while another 50 percent say it is "fair" or "poor."
Positive thinking:Despite the range of financial experiences, nearly all (91 percent) Americans are confident in their own ability to manage their personal finances. In Denver, 89 percent of respondents said the same.
Debt perception: Although they have earnest intentions to pay off debt, Americans are "treading water" when it comes to debt, savings and investments. Eighty-two percent of Americans say they make some kind of debt-related payment each month.
In Denver, 80 percent of respondents are making debt payments: 61 percent make credit card payments, 50 percent have a mortgage, 32 percent make car payments, 20 percent have student loans and 17 percent have medical debts
Priorities, priorities: Every day, Americans consciously decide to place a higher priority on activities other than their finances, yet they recognize they need to do more to improve their financial situations.
In Denver, respondents said they spent an average of ten hours a week watching television, four hours working out and five hours browsing the internet. However, they only spend two hours a week paying their bills and managing household finances each week.
While an individual's recommended actions for tackling their financial fitness challenges depend on his or her personal situation, three basics are relevant to everyone:
Do your homework: You can find a wealth of valuable yet free information about managing your finances, such as personal finance websites, books, newspapers and seminars. Financial professionals can guide you through this information and help you set financial goals. For information about specific products, such as life insurance, you also can ask for a referral from professionals you currently deal with and trust - such as your auto/home insurance agent.
Set goals and a timetable to achieve them. But - rather than trying to make progress on all your goals at once - prioritize those goals every year and focus on the two or three that are most important to you.
Make a date once a year for an annual life insurance checkup to double-check that the amount and type of coverage is right for your current situation.
Survey Methodology
Reported results are from a nationally representative survey of 1,000 American adults age 18+. The survey was conducted December 15-19, 2012 via landline and cell phone. The survey has a margin of error of +/-3.1% in 95 out of 100 cases. The survey was conducted by FTI Consulting, Inc
The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurer, serving approximately 16 million households through its Allstate, Encompass, Esurance and Answer Financial brand names. Widely known by its slogan "You're In Good Hands With Allstate®," Allstate offers insurance products (auto, home, life and retirement) and services through Allstate agencies, independent agencies, and Allstate exclusive financial representatives, as well as via www.allstate.com, www.allstate.com/financial and 1-800 Allstate®. As part of Allstate's commitment to strengthen local communities, The Allstate Foundation, Allstate employees, agency owners and the corporation provided $28 million in 2011 to thousands of nonprofit organizations and important causes across the United States.
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Contact:
Stephanie Howell
Office: 303.779.3791
Mobile: 303.842.3715
Stephanie.Howell@allstate.com