Mutual Insights Survey Shows Financial Optimism Up

Mutual Insights Survey Shows Financial Optimism Up

February 20, 2024 | Category: Corporate

Positive changes lead some to feel better about financial future
When it comes to consumers' concerns about money, a lot changed over the course of 2023. Inflation eased, gas prices dropped, fewer people were without jobs and interest rates stayed steady. Consequently, people were feeling a bit better about their financial future as the year drew to a close.

In a March 2023 Mutual Insights survey conducted by Mutual of Omaha, just one in four respondents expressed confidence in their immediate financial future. By November, that number had jumped to almost six out of 10.

Those numbers correspond with data from the Conference Board Index, a measure of expectations for the next six months, that also show consumer confidence in job prospects, inflation and business conditions increased in December to its highest level since 2021.¹

That uptick in optimism is likely due to changes in the economy that left some people with surplus cash that they're putting to work to improve their finances.

Consumers voice their optimism
"I have started paying for life insurance," said one Mutual Insights respondent, an 18-26-year-old female earning between $75,000 and $100,000 annually. "I also have an IRA for my schooling, that I continue adding money to, so when I'm done with school I won't owe, and I can pull out additional money."

"I am working on investing more, saving more and trying to pay off debt," said one millennial female earning between $40,000 and $75,000 per year. "I am also looking into side hustles and additional streams of income."

"I believe taking a proactive approach to protecting my financial future is necessary. Financial education is key, and I'm commenced on an interesting journey in that regard," said a millennial male earning more than $150,000 per year.

Financial confidence varies by generation
While the latest survey reveals a general increase in overall confidence, it also shows some shifts among generations. In November, all generations, except millennials, expressed higher confidence than they did in March. Generation Z was the most confident with 32% in total agreement and baby boomers were the least with 23%.

The November Mutual Insights survey revealed financial optimism among women is also up. In March, 15% of women and 39% of men were totally confident in their financial future. In November, that number jumped to 24% of women and fell to 31% of men.

If you're looking to build a financial plan in 2024 to protect your financial future, be sure to review these mistakes to avoid to ensure you get your plan started right.

¹https://www.bloomberg.com/news/articles/2023-12-20/us-consumer-confidence-rises-to-5-month-high-on-better-outlook?srnd=premium

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