Americans’ Financial Health Gets Better
The Good Accounting News:
Accounting News – According to the American Institute of Certified Public Accountants, the personal financial satisfaction of the U.S. population is steadily increasing. In fact, it’s reaching a 24-year peak for the fourth quarter of 2017. This Personal Satisfaction Index is calculated with consideration to personal pleasure and personal pain indexes. These include job opportunities and market gains across the trading floor, from NASDAQ to S&P and more.
Reports in accounting news say this fourth quarter just closed with a 5.2% increase in market gains. On the pain index side, considerations include taxes and inflation.
The Bad Accounting News:
So even though Americans in general seem to be in better financial health, Millennials which represent the largest generation in the U.S. isn’t doing too well. According to the AICPA, they’re twice as likely to worry about debt (43%) than Baby Boomers (19%). Almost 7 out of 10 Millennials said, in a survey, that they’re negatively impacted by debt in their day to day, resulting in anxiety, sleepless nights, fights with partners or spouses and even distraction at work.
So what are the main causes for debt?
36% of people survey reported that they didn’t make enough money to cover expenses. 41% blamed their mortgages, 33% attributed their debt to car payments. Health care costs and student loans represented 32% and 23% respectively. 30% blamed interest payments on credit cards. Only 16% of people said vacation and luxuries was why they were in debt.
According to NPR accounting news, Americans carry about $784 billion in credit card debt and owe about 1.34 trillion on student loans, not to mention household debt is at a record high, at $13 trillion. But NerdWallet reports higher numbers than NPR, with at an estimated $905 billion in credit card debt in 2017; an 8% increase from 2016. The average household according to their debt study analysis is carrying a credit card of $15,654 due to medical expenses.