CINCINNATI, April 15, 2016 /PRNewswire/ -- Nearly half
of Americans – 48 percent, to be exact – consider themselves
financially savvy, according to a recent study by Fifth Third Bank
(NASDAQ: FITB).
But their finances don't reflect that claim, says Jada Grandy, senior vice president and Community
Reinvestment Act strategies director for the Bank, which
commissioned the survey in time for Financial Literacy Month, which
is celebrated annually in April.
"Americans seem to know and understand the concepts that lead to
financial wellbeing. But the results of this survey suggest we
aren't putting those theories to practice," she says, noting that
47 percent of Americans report frequently living paycheck to
paycheck. "We want to empower Americans to take control of their
finances so they can live more empowered, fulfilled lives."
The national survey examined the financial beliefs and behaviors
of American adults. The results provided a snapshot of our nation's
financial literacy.
Americans are confident in their financial expertise.
- 48 percent of Americans consider themselves financially
savvy.
- 45 percent know they should set aside 20 percent of their
income for savings.
- More than half1 of Americans know an emergency
financial fund should hold six months of living expenses.
- 25 percent of Americans are debt-free.
- 46 percent agree retirement savings should begin in a person's
20s.
But they aren't putting theory to practice.
When asked
about their financial habits, however, results show a significant
gap between financial literacy theory and practice.
- 70 percent of Americans currently have some form of debt.
- 30 percent of those in debt have no plan to pay it off.
- Two-thirds2 of respondents do not have six months of
living expenses saved in an emergency fund.
- 30 percent of Americans don't have an emergency fund at
all.
- More than half3 of respondents don't contribute to a
401K, IRA or other retirement plan.
What's the good news?
Financial independence –
defined as living debt free (with the exception of a mortgage) and
no longer living paycheck to paycheck – is a goal for 82 percent of
Americans. To help them put financial knowledge to real practice,
the Bank has published its Top Ten Steps to Financial Empowerment
at www.53.com/life. Fifth Third is committed to financial
empowerment and offers its free L.I.F.E. (Lives Improved through
Financial Empowerment®) programs to consumers through many ages and
stages of life.
About Fifth Third Bank
Fifth Third Bancorp is a
diversified financial services company headquartered in
Cincinnati, Ohio. The Company has
$141 billion in assets and operates
1,254 full-service Banking Centers, including 95 Bank Mart®
locations, most open seven days a week, inside select grocery
stores and 2,593 ATMs in Ohio,
Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West
Virginia, Pennsylvania,
Missouri, Georgia and North
Carolina. Fifth Third operates four main businesses:
Commercial Banking, Branch Banking, Consumer Lending, and
Investment Advisors. Fifth Third also has an 18.3% interest in
Vantiv Holding, LLC. Fifth Third is among the largest money
managers in the Midwest and, as of December
31, 2015, had $297 billion in
assets under care, of which it managed $26
billion for individuals, corporations and not-for-profit
organizations. Investor information and press releases can be
viewed at www.53.com. Fifth Third's common stock is traded on the
NASDAQ® Global Select Market under the symbol "FITB." Fifth Third
Bank was established in 1858. Member FDIC
Copyright © 2016 Fifth Third Bank, Member FDIC, Equal Housing
Lender, All Rights Reserved.
1 55 percent of respondents know how much money is
recommended for an emergency fund.
2 69 percent of respondents do not have six months of
living expenses saved in an emergency fund.
3 55.2 percent of respondents do not contribute to a
401K, IRA or other retirement plan.
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SOURCE Fifth Third Bank