Dave Ramsey: 401(k) Savers ‘Scared, Confused’ and in Need of What?

'Tis the season, after all.
‘Tis the season, after all.

We’d be very surprised if he found them calm, cool and completely collected, especially in light of upcoming All Hallows’ Eve. Most Americans are scared and confused about their handling of personal finances and in need of serious financial education (or more broadly financial wellness), according to a new report from advisor-focused SmartDollar, as well as its consumer-oriented parent company run by bestselling author Dave Ramsey.

The study, based on SmartDollar’s financial wellness assessments completed earlier this year, finds more than half of the respondents are worried about their money, with 26 percent saying “scared” best describes their attitude, while another 25 percent feel confused.

That “anxious majority” contrasts with just 26 percent who say they feel hopeful with their money.

The study finds those who are anxious about their money aren’t limited to a particular generation or income bracket.

  • Generation X is the most anxious, with a total of 54 percent feeling worried.
  • But just over half of Millennials share the same emotions, along with 47 percent of Baby Boomers.

According to the data, most anxious workers share three common behaviors that keep them from feeling more confident about their money—living paycheck to paycheck (65 percent), rarely using a written monthly budget (70 percent), and being unable to cover a $1,000 emergency without borrowing (56 percent).

“Clearly many American workers have reason to be anxious,” Brian Hamilton, vice president of SmartDollar, said in a statement. “Failing to budget or maintain an adequate emergency fund, these employees are under constant stress.”

The good news, according to Hamilton, is that workers view their employers as “a trusted source of financial education. A financial wellness program focused on proven, practical action steps toward lasting behavior change is the solution.”

John Sullivan
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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.

2 comments
  1. The good news in the last paragraph is that they view their “employers” as a trusted source of financial education? I hope they mean their employer’s providers and 401k partners!

  2. Pingback: SIMPLE Solutions to America’s 401k Retirement Savings Gap | 401K

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