Optimism lags behind an overall improved economy.
In 2009, Northwestern Mutual commissioned a study among U.S. adults aged 25+ to explore their attitudes and behaviors toward money and financial decision-making, as well as their opinions about broader ideas such as the attainability of the American Dream. The project was ultimately named the “Planning & Progress Study” and has been conducted every year for the last decade.
To mark the 10-year milestone of the research, the Planning & Progress Study kicks off this year with a look back at the original cohort surveyed – people who were aged 25+ in 2009 and are 35+ today. The findings reveal deep changes in their attitudes toward money and risk.
For starters, overall financial security and financial habits have markedly improved:
- 71% feel financially secure today vs. only 47% who felt financially secure in 2009
- Compared to 10 years ago:
- 73% say their financial situation is better now
- 88% say their financial habits are better
- 74% are carrying less debt
- 74% are more frugal
- 66% have set specific goals for the next 5-10 years, while only 57% said the same in 2009
Optimism remains flat…
Despite the stronger financial footing, Americans have gotten substantially more cautious over the last 10 years. Much of that can be pegged back to the financial crisis of 2008 – something that left a deep behavioral mark on people’s lives which extends well beyond finances.
“In many ways, 2009 feels like ancient history, but the imprint that period left is still visible in the data we collected in 2019,” says Emily Holbrook, director of planning at Northwestern Mutual.
In 2009, Northwestern Mutual commissioned a study among U.S. adults aged 25+ to explore their attitudes and behaviors toward money and financial decision-making, as well as their opinions about broader ideas such as the attainability of the American Dream. The project was ultimately named the “Planning & Progress Study” and has been conducted every year for the last decade.
To mark the 10-year milestone of the research, the Planning & Progress Study kicks off this year with a look back at the original cohort surveyed – people who were aged 25+ in 2009 and are 35+ today. The findings reveal deep changes in their attitudes toward money and risk.
For starters, overall financial security and financial habits have markedly improved:
- 71% feel financially secure today vs. only 47% who felt financially secure in 2009
- Compared to 10 years ago:
- 73% say their financial situation is better now
- 88% say their financial habits are better
- 74% are carrying less debt
- 74% are more frugal
- 66% have set specific goals for the next 5-10 years, while only 57% said the same in 2009
Despite the stronger financial footing, Americans have gotten substantially more cautious over the last 10 years. Much of that can be pegged back to the financial crisis of 2008 – something that left a deep behavioral mark on people’s lives which extends well beyond finances.
“In many ways, 2009 feels like ancient history, but the imprint that period left is still visible in the data we collected in 2019,” says Emily Holbrook, director of planning at Northwestern Mutual.
Definitions of success…
The attributes that best fit people’s definition of success continue to favor relationships, health and lifestyle over material, career and wealth. The top six attributes cited in 2019 include:
- (Tie) “Spending quality time with family”
- (Tie) “Being Healthy”
- “Having a good relationship with your spouse or partner”
- “Being financially prepared for the future”
- “Having a good work/life balance”
- “Being a good parent”
Each of these far out-shadows things like “Earning a high income” (No.12), “Owning the home of your dreams” (No.11), and “Having nice belongings” (No.19).
In 2009, the answers were very similar with only slightly more priority going to work/life balance and slightly less to being financially prepared for the future. The top six attributes were:
- “Spending quality time with family”
- “Having a good relationship with your spouse or partner”
- “Being healthy”
- “Having a good work/life balance”
- “Being a good parent”
- “Being financially prepared for the future”
Here again, these attributes were cited substantially higher than “Owning the home of your dreams” (No.15), “Earning a high income” (No.16), and “Having nice belongings” (No.19).
This is the first round of findings from the 2019 Planning & Progress Study, an annual research project commissioned by Northwestern Mutual that explores Americans’ attitudes and behaviors toward money, financial decision-making, and broader issues impacting people’s long-term financial security. Future waves will explore topics such as debt, retirement, the middle class, generational differences and more.
