Resume Now, an online resume builder, conducted a survey of 1.100 U.S. workers to find out how they’re feeling about their financial situation. You can see the full October 2023 Financial Transparency survey here and read through the findings. Here are some of the findings that stood out to me.
- Over half of respondents (58%) said they had financial stress in their lives. The highest levels of stress were felt at both ends of the education spectrum; participants without a college degree (75%), Master’s degree holders (75%), and employees of small companies (72%). Conversely, the self-employed (39%) and healthcare industry workers (39%) showed the lowest financial stress.
I am a big proponent of self-employment – I have held side gigs for most of my career, and now, after leaving my full-time job, I live on gigs. If you’d like to explore gig work for yourself, you can find my e-books here. Self-employed workers live within their means and work constantly on developing new services or products and seeking out new customers. They understand that when you have several clients or customers instead of a single employer, it takes more than one business decision to put you out of work.
- Credit card debt (34%), building one’s emergency savings account (21%), and saving for retirement (30%) were the top financial stressors reported, which means that the respondents were at least worrying about the right things. 17% said they worried about having enough discipline to manage their finances responsibly.
- Inflation has been cutting into workers’ earnings and buying power, and it’s proving to be a big influence on their career plans. 41% said they were actively looking for a new job with a higher salary in their current field, and another 35% said that they were currently looking for a new job with a higher salary in a different field.
- If employers post jobs, 85% of respondents say they should always include salary information. 45% say they won’t apply to jobs unless they have transparent salary info listed.
- If they’re going to stay, they’re going to need financial incentive. 40% said they tried to negotiate a higher salary with their current employer within the last year and another 40% saying they plan to try to negotiate. This explains why workers in small companies are more stressed; they know the budget will not stretch far enough for raises of any significance.
Only 37% of respondents could afford an unexpected expense of $400. That explains why 55% say they’ve taken on a side job in the past year. A third of those have taken on more than one side job.
Emergency savings is also a source of concern. Here’s how long respondents say they could manage on their emergency fund. (Experts recommend saving up 6 months’ worth of expenses to be safe.)
- Less than 1 month – 6%
- 2 to 3 months – 21%
- 4 to 6 months – 38%
- 6 to 12 months – 25%
- 1 to 2 years – 9%
- 3 years or more – 1%
Financial stress takes a toll on workers’ physical wellbeing and productivity. Fears of recession, layoffs, and unexpected setbacks are cutting into our national workforce’s security and relationship with the leadership of their companies. If you’re an employer who wants to support your workers, consider adding financial planning and management courses to your training agenda. It’s one area that workers find it hard to ask for help, so if you take the lead, you can make a difference in your employees’ quality of life.
The FDIC offers a Money Smart program for people of all ages.
So does the Consumer Financial Protection Bureau. U.S. News and World Report offers a list of the best free online financial literacy resources here.
Wishing you a prosperous and less stressful New Year.
