Northwestern Mutual sponsored the Financial Realities study to help provide insight into how Americans are responding to the current economic landscape, and to explore how attitudes and priorities may be changing regarding the way people approach their finances. Independent research firm Harris Interactive conducted the online survey of 1,057 Americans aged 25 or older in March and April, 2010.
The first phase of the research, titled "Changing Timeframes" and released in June 2010, revealed that some of the most resounding financial realities of today include the following:
- Americans have embraced highly conservative attitudes toward money.
- 65% of respondents have experienced a significant financial challenge in the past 18 months.
- The majority of Americans are widening their time horizons for achieving financial goals.
- Saving will continue to outpace spending over the next 12 months.
- Young people are saving more than older generations.
- Women are more conservative than men.
For more information about the Financial Realities: Changing Timeframes research, we encourage you to:
The second phase of the research, titled “Generational Advice,” helps provide additional insight into Americans’ propensity to give advice against the backdrop of economic uncertainty, and explores how advice might be similar or different across generations. The findings revealed:
- Americans are advice-givers, with 75% of respondents saying that they feel a responsibility to pass along financial advice.
- Men feel less of an obligation to give advice than women, but in fact are more likely to actually give it.
- Good advice is ageless – every generation agrees in principle on the right things to do.
- Older Americans who have made mistakes present a cautionary tale, while Generation Y is showing signs that the most important lessons are sinking in.
For more information about the Financial Realities: Generational Advice study, we encourage you to: