According to a recent Commonwealth report, more than 80% of Americans agree that financial insecurity is a big problem. In today’s uncertain economic climate, where business closures and mass layoffs have become the new normal, this finding may not be surprising. However, Commonwealth’s survey results come from the summer of 2019, not 2020, when unemployment held at 3.7%, the stock market boomed, and a number of sectors experienced notable job gains. 

As our report demonstrates, even in this period of relative economic stability, a majority of Americans believed financial insecurity to be ubiquitous in the US. Moreover, three in four reported personal experience with financial insecurity at one point in their lives and 30% were currently experiencing it. The majority also believed that institutions—employers, government, financial institutions—have an important role to play in addressing worker financial security.

Released on July 30, our report Perceptions of Financial Insecurity in America: A National Survey of Working People in the United States reveals findings from a nationally representative survey of 2,000 workers across all income levels. The study sought to understand, broadly: 

• What are perceptions on how widespread Americans’ financial insecurity is? 
• What are people’s personal experiences with financial insecurity? 
• What did they see as causes of financial insecurity? 
• Who do people believe is responsible for “solving” the financial insecurity that is so widespread in America?

Highlights from the report:

Financial insecurity is widely perceived as a significant problem: 81% of respondents agreed that financial insecurity is a problem and 85% believed that it could happen to anyone, no matter their income level.

A majority of respondents understood external forces to be a significant factor in financial insecurity: 70% of respondents pointed to causes beyond a person’s control, such as the rising cost of living, stagnant wages, and racial and gender pay disparities. Only 30% attributed financial insecurity to primarily personal choices. Half of the respondents agreed with statements that there are historical discriminatory practices that continue to impact people of color and women from having equal access to financial opportunities today.

Demographics and experience play a major role in perceptions on the causes for financial insecurity: Black respondents, women, those making under $60,000, and those with current experience of financial insecurity were more likely to recognize the significant role of external factors. 

A majority of respondents believe institutions have an important role to play in improving financial security: Regardless of perceptions on the causes, the majority of respondents believe that private and public institutions have a critical role to play in financial security, with employers, financial institutions, and government recognized as the top three sectors.

In the summer of 2020, America finds itself at a crossroads. In the last several months, the country has faced a sudden economic crisis and historic protests of racial injustice—both of which have revealed complex systemic issues that many Americans have long understood to be barriers to financial opportunity for all. As public and private institutions move to pursue racial and economic justice, Commonwealth’s report provides data and actionable insights into what financial insecurity means to everyday Americans and what their perceptions mean for the business and policy leaders addressing this challenge.

Perceptions of Financial Insecurity in America: A National Survey of Working People in the United States is made possible by generous support from Metlife Foundation. 

About The Financial Opportunity Project

Decades of research points to the material, psychological and social value of wealth. Yet, building financial security is a persistent challenge for lower-income Americans who continue to become less wealthy, not more. In fact, nearly 40 percent of people in the United States cannot cover an unexpected $400 emergency expense, according to the Federal Reserve.

MetLife Foundation’s Financial Opportunity Project aims to reverse this trend. The four-year initiative, implemented by Commonwealth thanks to the generous support of MetLife Foundation, will uncover and highlight new consumer insights and pilot practices to enable wealth creation for millions of low-income individuals and families over time.

For media inquiries, please contact Jackie Jusko at jjusko@buildcommonwealth.org or by phone at 216-374-0945.