More Households Financially Savvy, Survey Says [AUDIO]
As we continue to climb back from the abyss of the great recession, there’s more evidence today that consumers have been taught a valuable lesson about saving and preparing for future economic jolts.
Fidelity investments surveyed more than 1,500 people. Their survey is called, “From Scared to Prepared.”
“The stock market may have hit new highs recently, but the 2008 Financial Crisis is still seared in the minds of investors. While the crisis was traumatic, it’s had a real silver-lining that has prompted many Americans to take action, moving them from scared to prepared,” Fidelity said in a statement.
They found many took big hits in the economic downturn, with almost one in five losing their jobs and 35 percent experiencing a big income drop.
“Those are certainly very personal hits that really impacted the abilities of families to save and certainly shook their confidence.”
Fidelity’s John Sweeney says the result is a wiser investor, who is saving more and is more savvy about their investments.
He says many those burned by the recession are now better prepared.
“You want to make sure that your ‘burn’ is less than your earn.”
More than half (56 percent) in the survey say they have moved beyond their feelings of fear and confusion to significantly alter their financial mindset and behavior in a positive way.