Well, duh …not investing in a 401k is considered to be the biggest financial mistake for most Americans, followed by not having an emergency fund.
For millennials, not having an emergency fund is the No. 1 mistake, followed by having a low credit score (most likely because retirement “is so far off”).
These are findings of a recent survey from TD Ameritrade, which adds that a depressing number of Americans have trouble discussing finances, even with a financial advisor.
In fact, many would rather discuss politics, health issues and religion over money and personal finances, yet more than a third wish they could discuss their finances more freely.
“In many American households, money isn’t something you talk about,” Wende Rhodes, vice president of Branches at TD Ameritrade, said in a statement. “While politics and religion are topics regularly debated, money conversations seem to be stigmatized or off-limits, and that needs to change.”
The finance taboos breakdown
A third of Americans feel that it’s not polite to discuss finances in social settings, and the fear of being perceived as a failure is the number one reason millennials don’t openly discuss the topic.
Student loan debt is the most uncomfortable financial topic to discuss (36%), followed by childcare expenses (30%) and living paycheck to paycheck (26%).
While many Americans feel comfortable discussing key financial elements with their spouse/partner/significant other, only 45% feel comfortable discussing student loan debt with them.
Americans are twice as likely to discuss housing, medical and living costs with their significant other than with a financial advisor.
Money spent at restaurants or for takeout is the most uncomfortable topic to discuss with financial advisors with only 16% of Americans feeling comfortable.
Half of Americans (51%) and seven in 10 millennials (71%) think that society would be healthier if people felt they could discuss personal finances more freely.
Mistakes are common
The data shows that Americans aren’t comfortable discussing their personal finances, especially financial mistakes that they’ve made. Three-quarters of Americans admit to having made a financial mistake, with a lack of financial education/knowledge (36%) as the primary cause.
Yet Boomers are twice as likely as millennials to not share their financial mistakes with others (25% vs. 12%).
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
