Economic Challenges Caused Some Consumers to Stop Managing Personal Finances

San Francisco, CA/November 16, 2010: A new study finds that as a consequence of belt tightening from the recent economic downturn has caused millions of Americans consumers to stop monitoring their personal finances. 

The Javelin Strategy & Research report, Personal Finance Management (Part 1): What Consumers Really Want from PFM, finds that twice as many consumers do not currently monitor or manage their personal finances – from 8% in 2009 to nearly one in five (19%) in October 2010.

“The prolonged economic downturn has made money tight in millions of American households and caused the rise of a nation of cautious consumers. But contrary to what many may think, millions of consumers are monitoring their finances less, not more,” said James Van Dyke, President and Founder, Javelin Strategy & Research.

The Javelin report finds that because half of U.S. households maintain financial accounts at more than one institution, the task of consolidating financial records is considered complex and often tedious.  Because of the perceived difficulty, the task of monitoring finances is frequently avoided.

Summary findings from the Javelin Strategy report include:

  • Nearly one out of five consumers (19%) surveyed do not currently monitor or manage their personal finances. This figure is more than double the 8% rate recorded in 2009.
  • The percentage of consumers who say they sometimes manage their finances by logging on to check account balances skidded to 46% in 2010, down from 59% in 2009.
  • Online banking use has decreased as many consumers switched back to paper and pen to track their finances.
  • Consumers say their number one need is to be able to see all their account balances and transactions in one place.

“Americans today are feeling anxious about monitoring their finances and need tools that simplify, not complicate, their lives,” said Mark Schwanhausser, Senior Analyst, Multi-Channel Financial Services. He adds, "Consumers want to be able to access multiple accounts in one view, in real-time, and on the go.”

Source: Javelin Strategy & Research www.javelinstrategy.com/research

Posted by Mark Rodrigues at 11/16/2010 9:26 AM
Categories: Psychology, Online and Internet
Tags: online online banking Trends text messaging
 

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