Executive Portfolio

This article was written by Danielle

A new study released by Bankrate, Inc. shows that although estimates indicate that a quarter of Americans owe more on their mortgage than their homes are worth, the long-held dream of home ownership continues to be top of mind. The poll, conducted by Princeton Survey Research Associates International, is included in the new Bankrate Financial Literacy series on Families and Finance, which can be seen here: http://www.bankrate.com/finance/financial-literacy/families-and-finance.aspx.

Among the findings about family concerns:
– 70 percent of Americans aren’t sure how they’ll save enough for
retirement while another 50 percent fret about their ability to afford
college for a family member;
– More than two-thirds of respondents (67 percent) would postpone having
children to establish their careers and finances while 30 percent
would consider not having children at all due to the increased
financial burden;

– 60 percent of those polled say they would change or delay marriage
plans if they found out their future spouse had substantial debt or
bad credit. 69 percent of women find this to be a deal breaker versus
51 percent of the men.

Among the findings about finances:
– Although almost half (48 percent) of Americans worry about losing or
being unable to afford their home, more than nine out of ten (92
percent) of the respondents believed that a home is a good investment
for the future;
– Despite rises in the national savings rate, many Americans haven’t
changed their savings habits. Only 17 percent said they increased
savings, as opposed to 44 percent saving the same amount and 36
percent saving less than before;
– Among employed Americans, only 35 percent have adequate savings to
weather a job loss lasting more than six months;

– 61 percent of respondents with a college degree believe that stocks
and mutual funds offer the best chance for long-term financial returns
compared to 49 percent of Americans overall.

“These results provide an interesting illustration of the public’s mindset in a difficult economy,” said Julie Bandy, editor in chief at Bankrate.com. “While nine out of 10 still believe in the American dream of homeownership, nearly half worry about losing their homes. And even though American families are worried about reaching other financial goals — most notably retirement — most appear to be unable to save more money.”