Around 62% of people feel that they currently don’t get holistic financial advice, according to WalletHub’s new 2022 Financial Health Survey. In response to this consumer need, WalletHub launched WalletScore, a free feature that diagnoses your overall financial health based on your credit, spending, emergency preparedness and retirement funds.
Below are additional highlights of the survey, as well as a Q&A with WalletHub analyst Jill Gonzalez (video and audio files included).
- Young people want more in-depth financial advice. Young people are nearly 3 times more likely than those over 59 to say a complete look at their financial health would be very helpful.
- A credit score is one piece of the puzzle. 55% of people think a credit score alone is not sufficient for managing their finances.
- There is demand for a free WalletScore. 52% of people would like to get their WalletScore for free.
- Emergency preparedness is lacking. 30% of people say they are not prepared for a financial emergency.
- Retirement plans are in trouble. More than half (53%) of people say they are not on track for retirement.
- A complete financial picture is much needed. 40% of people think a complete look at their financial health would be very helpful.
The complete survey results can be found at https://wallethub.com/blog/financial-health-survey/104845. Consumers can sign up to get their free WalletScore by visiting https://wallethub.com/wallet-score.
Q&A with Jill Gonzalez, WalletHub analyst
What exactly is a WalletScore?
“A WalletScore is a free new way to improve your overall financial health. It is a tool that diagnoses your financial health based on your credit, spending, emergency preparedness and retirement funds,” said Jill Gonzalez, WalletHub analyst. “A WalletScore includes even more information than a credit score, and it considers how prepared you are for the future rather than just rating your past. Checking your WalletScore has no impact on your credit, and it also provides actionable advice on how to improve your financial health.”
How do consumers feel about assessing their financial health?
“Around 40% of Americans want to take a complete look at their financial health, according to a recent WalletHub survey. This number varies based on age, with young people being three times more likely to be interested than people over age 59,” said Jill Gonzalez, WalletHub analyst. “Consumers should get a complete look at their financial health because a credit score only offers information about a person’s borrowing history. This information is useful, but it’s only one piece of the financial puzzle. A credit score does not reflect things like a person’s spending habits outside of their credit accounts, or how prepared they are for emergencies or retirement based on their savings.”
How prepared are Americans for their financial future?
“Unfortunately, a lot of Americans are struggling with preparedness for the future. In fact, 30% of people say they are not prepared for a financial emergency, which can easily end up causing a person to miss payments and take on unsustainable debt. Another alarming statistic is that more than half of people (53%) are not on track for retirement, which if not corrected will lead to elderly Americans staying in the workforce longer or struggling financially,” said Jill Gonzalez, WalletHub analyst. “The first step to being more prepared for your financial future is getting a solid grasp of where you stand now. Once you understand where you need to focus – for example, cutting back unnecessary spending to build an emergency fund or allocating a bigger portion of your savings to a retirement account – you can create a plan to get your financial health back on track.”
What component of financial health do Americans most need advice on?
“When it comes to financial health, Americans most need advice on investing, with nearly 24% of people choosing that as their top concern. With how volatile the stock market has been during the COVID-19 pandemic, it makes sense that people want to be able to make more informed choices about where to invest their money,” said Jill Gonzalez, WalletHub analyst. “The second biggest component of financial health that Americans need advice on is preparing for retirement, followed by spending.”