Financial Fitness for 2016

Financial Buddy Can Help Maintain Goals

Date: January 4, 2016
Contact: Paul Golden 303-224-3514, [email protected]

6 Money Mistakes to Avoid in 2016

  1. Don’t spend mindlessly.
    Do determine your Life Values, set financial goals, and make purchases that align with your priorities.
  2. Don’t let your financial paperwork, bills and statements pile up.
    Do take the time to get organized. Stay on top of your finances so you are aware of important information about your accounts and know when payments are due.
  3. Don’t shortchange your savings.
    Do save for short-term goals. But make sure you save for long-term goals and emergencies as well. Learn more about the three categories of savings.
  4. Don’t waste money on interest by making minimum payments.
    Do try paying even an extra $10 each month on your credit card balance. Reducing your outstanding debt faster means more money in your pocket.
  5. Don’t procrastinate your financial responsibilities.
    Do tackle a financial goal, whether it is reviewing your insurance policies or creating a will. Bonus points for opening a savings fund, since time is on your side.
  6. Don’t ignore the future.
    Do actively plan and manage your retirement. Even if it seems far away, begin to determine how you will pay yourself in your retirement years.

DENVER—A recent survey from the National Endowment for Financial Education (NEFE) finds over two thirds (68 percent) of U.S. adults will make a financial New Year’s resolution for 2016, a sign that many Americans remain as focused on their financial health as their physical health. The survey also finds that one in three (30 percent) rate the current quality of their financial life as worse than they expect it to be. The survey was conducted online in December 2015 by Harris Poll on behalf of NEFE, among more than 2,000 U.S. adults.

“If you want to be successful with your financial resolutions in 2016, set thoughtful, but realistic, goals,” says Paul Golden, spokesperson for NEFE. “If your goal is to establish and build an emergency savings, start with a small amount like $500 dollars to show yourself that you actually can achieve that mark then set the bar higher. It’s not uncommon to be hit with an unexpected expense so you have to be prepared.”

Respondents in the NEFE survey cited the most prevalent financial setbacks in 2015 as transportation issues (24 percent), housing repairs (22 percent), and medical care for an injury/illness (19 percent). Additionally, the survey finds the top anticipated expenses for 2016 include paying off debt (36 percent), home improvement and maintenance (33 percent), and transportation-related expenses (33 percent).

As with any resolution, lofty goals are soon forgotten before January comes to an end. But with financial resolutions, a buddy can help. A past NEFE study found 85 percent believe having someone who understands their financial goals and can assist in holding them accountable would be helpful.

“A financial buddy can be anyone: a spouse, a trusted friend, a family member or a co-worker, and it doesn’t have to be someone with whom you share all of your financial information,” says Golden. “The greatest characteristics of a financial buddy will be someone who shares the same values and vision and someone who can bring perspective to the financial highs and lows that you experience.”

What’s Behind Your Financial Decisions?
Ever wonder why you feel good about spending money on vacations, but avoid saving for retirement? Why you buy new golf clubs, but procrastinate when it comes to giving your kids an allowance? The answer may lie in your unique values and how they influence your financial decision making. Take the LifeValues Quiz to learn more.

For help with setting goals and getting finances in order in 2016, visit www.smartaboutmoney.org.

Survey Methodology
Harris Interactive® fielded the study on behalf of the National Endowment for Financial Education from December 15-17, 2015, via its QuickQuerySM online omnibus service, interviewing 2,021 U.S. adults aged 18+. Data were weighted using propensity score weighting to be representative of the total U.S. adult population on the basis of region, age within gender, education, household income, race/ethnicity and propensity to be online. No estimates of theoretical sampling error can be calculated; a full methodology is available by clicking here.

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Contacts

  • Paul Golden

    Media Relations Director

    Direct: 303-224-3514
    Cell: 303-918-3620
    [email protected]

  • Patricia (Pat) Seaman

    Senior Director of Marketing and Communications

    Direct: 303-224-3538
    [email protected]