Are Americans Doing Better Financially? Or Spending More Recklessly?

401k, AICPA, milestones, debt

Making moves in light of—or in spite of—current finances.

Millennials may be delaying major milestones due to financial concerns, but apparently, that’s not the case for many Americans.

New research shows the number of adults spanning all generations who have postponed at least one big life decision for money reasons has fallen from 51 percent to 35 percent over the course of the last three years.

What’s better, according to the American Institute of CPAs (AICPA), “putting off specific life events for financial reasons has been nearly cut in half for a few areas.”

The study, conducted last month by The Harris Poll on behalf of the AICPA, found:

At first glance, these figures could indicate positive improvements in the state of the economy and Americans’ individual finances. But further insight might instead suggest that spending above and beyond our means—regardless of financial hardship—just might be the new normal.

More people are pressing on with some of life’s most expensive endeavors, yet research shows fewer people are embracing beneficial financial habits. In fact, “the percent of Americans to report making at least one positive change to their financial behavior since the recession has declined (68 percent in 2018, compared to 85 percent in 2015),” according to the AICPA.

Among those surveyed:

“As the economy continues to pick up steam and we put the recession further in the rearview mirror, it is important to be cautious and not forget the difficult financial lessons we learned,” Greg Anton, CPA, chairman of the AICPA’s National CPA Financial Literacy Commission, said in a statement.

“When making a major life decision, don’t just focus on the immediate costs. Consider the long-term financial implications as well. Taking on too much credit card debt to buy things your savings can’t cover, or making big purchases when you aren’t financially stable, are reckless moves in any economy,” Anton concluded.

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