Wondering how much money you should have in your emergency fund? Or what percentage of your income you should be saving for retirement?
Financial decisions like these can be crucial. However, with the overwhelming amount of information available, finding the right answer may seem daunting and complex.
If you find yourself overwhelmed by financial choices, you’re not alone. According to a recent BW survey conducted online by The Harris Poll in July, only 47% of Americans feel confident in their ability to make sound financial decisions.
As age and wealth increase, financial confidence grows
Confidence in financial decision-making rises with age, income, and education levels.
Only 30% of Gen Zers (ages 18-27) feel confident in their financial decision-making abilities. This percentage increases to 39% for Millennials (ages 28-43), 47% for Gen Xers (ages 44-59), and 62% for baby boomers (ages 60-78).
Only 38% of Americans with an annual household income below $50,000 feel confident in their financial decision-making, compared to 49% of those earning $75,000-$99,999 and 55% of those earning $100,000 or more.
Education also plays a role in financial confidence.
Only 37% of Americans with a high school diploma or less feel confident in their financial decision-making, while 45% of those with some college education and 58% of college graduates express confidence.
Accessing reliable information is crucial and easily accessible
The first step to making informed financial decisions is knowing where to find trustworthy information. Fortunately, you likely have access to numerous free or affordable resources.
Financial institution: Start by checking with your bank or credit union for online and in-person resources that can guide you towards sound financial decisions. Their employees can also provide answers to basic banking questions.
Employers: Many companies offer financial planning services to employees. Check with your HR department to see if this benefit is available to you.
Online brokerages: If you’re already investing, your brokerage likely offers educational materials and advisors to help you with investment strategies and retirement planning.
Nonprofit foundations or trade associations: Some financial advisors provide free or discounted services to those in need. Organizations like the Financial Planning Association offer pro bono financial planning. Keep an eye out for financial education events hosted by local community organizations and public libraries.
sentence: The cat quickly ran up the tree to escape from the chasing dog.
Rewritten sentence: To evade the pursuing dog, the cat swiftly ascended the tree.