CFPB Survey Finds More Than 40 Percent Struggle with Financial Well-Being

A newly published survey by the Consumer Financial Protection Bureau (CFPB) finds that 43% of consumers struggle to pay bills each month. The study, titled “Financial Well-being in America,” is a survey of more than 6,000 people across the United States in an attempt to measure financial well-being by comparing a number of demographic characteristics, like education, income, employment, and age to financial characteristics including savings, experiences, skills, and attitudes. After compiling survey responses and providing each answer with a score, the CFPB calculated a financial well-being score between 0 and 100 for each survey respondent. The average score among Americans was 54.

For those with a score below 50, there was a high probability of material hardship and difficulty making earning money to support the household. For the one-third of Americans that scored above 60, there was less than a 10% probability of material hardship or difficulty paying bills. Similar to previous studies by the U.S. Census Bureau and Federal Deposit Insurance Corporation, income level alone was not always a predictor of financial well-being. Rather, characteristics like education level, age, and savings levels acted as stronger predictors of financial well-being. Americans with less savings were more likely to struggle with financial well-being and experience hardship. The CFPB reasoned that, “These findings highlight the importance of savings and other safety nets in helping people to feel financially secure, one of the basic elements of financial well-being.”

Americans that have previously been contacted by a debt collector, denied credit, or utilized a non-bank short-term credit product were also more likely to also suffer from low financial well-being. The CFPB recognized that an individual’s financial well-being is influenced by a multitude of factors, with no one factor being dispositive. The Bureau notes, “We also hope it [National Financial Well-being Survey] provides inspiration and encouragement to the many policymakers, program directors, and other professionals whose mission it is to help people improve their finances to continue their efforts to address barriers to financial well-being.”