What They Mean in 2020 - Key findings from the "Money & Savings" survey by Synchrony Bank and Money.com.
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MONEY
&WhatSAVINGS
They Mean in 2020
Key findings from the “Money & Savings”
survey by Synchrony Bank and Money.com.
Illustrations by Edmon de Haro
Introduction
In good times and bad, most Americans While 4 of 5 of those who responded
are united in one economic goal: saving describe themselves as savers rather
money. But how, and if, they save, as than spenders, and most placed a high
well as what they are saving for varies value on a sense of control over their
widely, no matter the financial climate. finances, the study revealed fascinating
That’s because savers are people, with differences among savers. Here are
different hopes, dreams, aspirations and some of our key discoveries on money,
values. This new survey of more than savings and happiness.
2,000 savers—a partnership between
Synchrony and Money.com—started
with the most basic questions: Are you
saving money? And what are you
saving for?
Table of Contents
3 Budgeting for Life, and
for the Unexpected 11 Couples and Common
Financial Ground
5 Looking to the Future 13 Confidence and a
Sense of Control
7 Declaring—and Defining—
Financial Independence 15 When I Win the Lottery
9 Women, Men and How
They Look at Money 17 Bonus:
Tax Matters
02
1
Budgeting for Life, and for the Unexpected
In many ways, a working household budget is a map
to financial wellbeing, but it’s not something everyone
has, or uses. Among the 65% of savers who have a
personal or household budget, 79% say they always
or usually stick to it.
To keep their budgets and savings on
track, an impressive 88% of survey
respondents set aside an emergency
fund. But the protection those funds
offer varies, and only a little more
than half (53%) could pay for a year
of general household expenses from
their emergency funds. And 68% of
all savers say that they have dipped
into savings to cover unexpected
bills, such as healthcare or car
repairs. The good news is that
we tend to get better at
budgeting as we age. Retired
savers are the most likely
to stick to their household
budgets and have a
robust emergency fund.
I had health expenses that were denied by
my insurance carrier. I needed to go on a
payment plan with the provider and hospital,
and an austerity budget for myself.”
—Woman, 61
0365% 79%
Budgeting for Life, and for the Unexpected
And
36%
always or usually
stick to their budget
HAVE A
HOUSEHOLD/ But
PERSONAL
BUDGET FOR of those earning
$75k-$100k
SAVINGS AND
85%
still worry about
EXPENSES unexpected expenses
43%
While
of savers earning
47%
$50k-75k have set up
an emergency fund of women are actively
VS. 30%
building emergency funds
Only
say it’s enough to cover of men
mortgage or rent 042
Looking to
the Future
One major reason people save money is to deal with
life’s many uncertainties—91% of respondents say the
ability to save gives them a sense of control over their
finances. But that’s not always enough. Half of the
people between the ages of 45 and 54 often feel that
their finances control them. While nearly the same
proportion of women and men are actively saving for the
future, especially retirement (61% and 60%, respectively),
women are nearly twice as likely as men (42% versus 22%)
to worry they won’t have enough for retirement.
But retirement isn’t the end of the road. A full 89% of
retirees describe themselves as savers, compared to 79%
of those yet to retire—more than half are still saving for
the future in general. Among their specific goals, 45% are
saving for a vacation, and 34% for home improvements.
I have a 401(k) and IRA for retirement savings.
If the market encounters a large downturn, that
would impact my retirement savings and strategy
considerably. Inflation is also a concern.
—Woman, 62
0561% 13%
Looking to the Future
OF ALL CONSUMERS OF THOSE EARNING
IDENTIFY LESS THAN $50K
52% 39%
RETIREMENT AS A AREN’T SAVING
TOP SAVINGS GOAL ANY MONEY
Not only are
of retired consumers still of retirees are still
91% 50%
actively saving for the future saving for retirement
of all consumers say of those aged
the ability to save gives 45–54 feel that
them a sense of control their finances often
42% VS. 22%
While over their finances control them
of women worry
about not having of men
enough to retire
063
Declaring—and Defining—
Financial Independence
Financial independence means
not relying on others for financial
support (i.e., parents, grandparents,
relatives, government) to meet
day-to-day expenses.”
—Man, 32
One surprising discovery is that for
many people, financial independence
has more to do with peace of mind than
it is a matter of spending capability. While
just over half of all savers associate financial
independence with the ability to buy whatever
they want, 99% say it means having a feeling
of control over their finances. More than
90% of savers say financial independence is
connected with having a retirement plan. But
there are challenges: 57% of savers between
45 and 54 are worried their savings won’t be
enough to cover their retirement needs.
Control is also important, with three-quarters of happy savers
reporting that they handle day-to-day decisions by themselves,
or alongside a spouse or significant other, compared with just
25% who leave such decisions to their partner. And that sense
of control varies along gender lines. While young savers say
they are still working on independence, older ones are more
likely to say they’ve achieved it.
0799%
Declaring—and Defining—
Financial Independence
10% & 26%
OF SAVERS SAY INDEPENDENCE MEANS THE
ABILITY TO PAY ALL BILLS EACH MONTH
YET
WORRY ABOUT
96% VS. 88%
of men of women PAYING THEIR DEBTS
of savers 65 or older have
92% & 57%
achieved the financial of those
independence to splurge 35–44 years old
77% VS. 91%
of all savers associate of those aged 45–54
financial independence with worry they won’t have
having a retirement plan enough to retire
of women of men
SAY THEY FEEL IN CONTROL
OF THEIR FINANCES 084
Independence means not having to check with
my husband before I purchase something,
because I know I have my own money.”
—Woman, 66
Women, Men and How
They Look at Money
More than 80% of men are happy
with their financial lives, compared
with just 60% of women. But that
dissatisfaction may drive better
money habits. Women are more likely
to seek ways to save, and to act on
good deals when they see them. Women
also tend to be more collaborative when
making important financial decisions.
Generally speaking, men’s higher level of satisfaction
translates to a lower level of concern about specific challenges.
Only 39% of men worry about paying for their kids’ college,
versus 51% of women. While 26% of women are concerned
about paying off debt, only 10% of men feel that way. And
women are nearly three times as likely (20% versus 7%) to worry
about living paycheck to paycheck. Curiously, while 89% of
men describe themselves more as savers than spenders (versus
76% of women), women are less likely to take money from their
savings account for splurges, and more likely to associate
financial independence with freedom from debt.
09Women, Men and How
They Look at Money
81% VS. 60%
Men Are
10% VS. 17%
Happier with
their finances for women
Less likely to
worry about money for women
68% 54%
Women Are
VS. formen
26% 10%
More likely to
work with spouse
VS. formen
on big decisions
More concerned
about paying
off debt
105
Couples and Common
Financial Ground
One thing the study confirmed is that
money can place real stress on relationships.
More than three-quarters of all savers have
fought over money with their spouse or
significant other in the past six months, and
more than one-third in the past month.
Some couples have the same
attitudes toward money, but it can
also be the case that one person is a
saver and the other is a spender.
Among couples, savers involved with
other savers were the most likely to be
happy (87%). Fortunately, they’re
also the most common, according to
the survey, representing 55% of all
couples. At the other end of the Financial
spectrum, just 63% of spenders with independence
a spender spouse (7% of all couples)
describe themselves as happy. means having
When it comes to decision-making,
enough
individual autonomy on the small stuff, savings and
along with mutual consultation on guaranteed
major choices seems to be the
approach that most happy couples
income for
share. The youngest savers, aged my wife and
18–34, are the most inclined to work I to sustain
with a spouse or significant other on
key financial decisions. The stress that
the lifestyle
money places on a relationship also that we enjoy,
seems to be directly related to how without having
much money a couple has. While 58%
of the least affluent savers (with under
to work.”
$50k in income) have fought over —Man, 60
money in the past month, just 31% of the
most affluent savers (with incomes of
$200k-plus) have done so. 1166% VS. 55%
Couples and Common
Financial Ground
COLLABORATE
WITH A SPOUSE OR
SIGNIFICANT OTHER ON
35% 58%
OF SAVERS OF THOSE
AGED 18–34 AGED 55–64 BIG FINANCIAL DECISIONS
That Jumps To
of savers in a relationship
have had a money fight with
their spouse or significant
other in the last month
87% 63%
among those earning
less than $50k
While Just
51% VS. 67%
of savers involved with of spenders involved
other savers are happy with other spenders
Only
of non-retired
of retired savers say money savers
stresses relationships
126
I’m concerned that the value of my savings
will decrease due to instability in markets
and the economy.” —Woman, 72
Confidence and a Sense of Control
The study revealed a clear connection between
saving money and the confidence people feel
about their financial destinies. More than 90%
of all savers say saving money makes them feel
responsible. But only 78% say they feel in control of
their long-term savings.
Confidence is more than just a feeling—
nearly half of women say their finances
control what they can do. And it changes
with age—just 49% of savers aged 18–34
feel in control of their long-term
savings, compared with 82% of
those aged 55–64. Confidence
also equates to less worry
about things beyond their
control. Fewer than one-third
of retired savers worry about
the overall direction of the
economy, versus 42% of
those who are not retired.
Among all income groups,
less affluent savers report
the lowest confidence in
their financial picture, and
are the likeliest to refer
to themselves or their
spouses as spenders rather
than savers.
1354% VS. 30%
Confidence and a Sense of Control
ARE CONCERNED ABOUT
94% 78%
OF THOSE EARNING OF THOSE EARNING SAVING FOR COLLEGE
$200K AND UP $50K-$70K
82% VS. 49%
OF ALL SAVERS SAY
SAVING MONEY FEEL THEY
MAKES THEM FEEL CONTROL THEIR
RESPONSIBLE, LONG-TERM SAVINGS
FEEL IN
CONTROL OF
OF SAVERS AGED OF THOSE AGED THEIR FINANCES
55–64 18–34
147
When I Win the Lottery
An unexpected inheritance, proceeds from a business sale
or a sizeable tax refund—we all dream of windfalls. No sooner
does the excitement wear off than the question arises:
What do I do with the money?
Many savers surveyed see a
windfall as an opportunity
for greater financial
security. Asked what
they’d do if $50,000
fell into their laps,
millennials focused on
paying off looming
student debts. By
age 55 or older,
respondents tended
to list legacy and
making gifts to
grandchildren and
family as priorities.
While men cite
retirement saving as
a likely use, women
A 50,000 Windfall:
increasingly favor using
a portion for a car,
a vacation or home
improvements. Across
all groups, though,
many savers say
they’d also use at least
some of that money to
invest for the future.
I would set $30,000 aside for
The same holds true of tax
refunds. While men are
retirement and divide the remaining
more inclined than women $20,000 between paying off debt
to save all or most of a and donations to charity.”
refund, 75% of all savers
save, while just 9% say —Man, 32
they spend it all. 15When I Win the Lottery
$500 Windfall?
HOW WOULD YOU SPEND A
80%
I save all or most
of a tax refund.”
MOST COMMON RESPONSES:
Men: Go out to dinner
Women: Make a purchase
Men:
Millennials: Pay down student loans
People Aged 55-plus: Donate
$50,000 Windfall?
66%
HOW WOULD YOU SPEND A
Women:
MOST COMMON RESPONSES:
Men: Save for retirement
Women: Home improvements
Millennials: Pay down student loans
People Aged 55-plus: Give to grandchildren and family
16TAX MATTERS
35% TO 27%
While taxes may be inevitable, the extent to which
savers worry over them, take steps to reduce them
and prepare their returns varies.
WOMEN DREAD TAX
TIME MORE THAN MEN
Savers who hire a
60%
of MEN do their
own taxes
Investing
VS. 45%
of WOMEN who
do theirs
Contributing to a retirement fund
tax preparer are
more likely than 50% VS. 43% 64% VS. 59%
self-preparers to Charitable donations Paying off loans
reduce their taxable
31% VS. 28%
income using: 74% VS. 65% 21% VS. 17%
Self-preparers are more likely to reduce taxable
income by contributing to a health fund
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