Amidst COVID-19 still being a massive problem in America; financial insecurity is at an all-time high. 80% of Americans believe financial insecurity is a significant problem. With business closures and layoffs still heavily occurring, financial insecurity is only natural in today’s environment. 71% of American households are financially unhealthy, resulting in not being able to afford critical financial decisions.
Despite the financial insecurity Americans have, education is always useful for financially insecure individuals, but the issue is not who knows more about money. The problem is poverty, high-priced credit, and wage stagnation. Many Americans are not bad decision-makers regarding their finances. Leaders can help reduce the financial insecurity that America has and reduce the economic harms Americans currently face. Harms include household debt and workplace policies, especially with the COVID-19 pandemic.
Leaders such as employers, government, and financial institutions have the opportunity to address worker financial security and improve their attitudes toward their financial situations. 80% of Americans also live paycheck to paycheck, which is a significant factor. Along with Americans living paycheck to paycheck, many feel that their primary job does not cover the cost of living, and many do not have sufficient emergency savings funds.
How can Americans get out of this financial insecurity? Creating a path to financial security can be challenging. Having an understanding of the issue causing this insecurity includes examining financial habits and their attitudes toward retirement. Cutting down mindless spending and using credit responsibly is a strong starting point, and setting realistic financial goals by making a step-by-step plan to reach those goals.
Financial insecurity can cause negative emotions with worry, stress, anxiety, and physical health impacts. Discussing the future is daunting, but it’s the first step to overcome financial insecurity.