Financial Independence Survey

Do you believe in the American Dream? Results of a new survey indicate that most US adults still do. To coincide with Independence Day, the National Financial Educators Council (NFEC) conducted the survey to discover whether Americans today perceive that financial independence is attainable.

The survey took place between June 18 and 23, 2022 and was designed to assess individuals’ attitudes and emotions around money management and how confident they feel about making personal finance decisions. To evaluate financial independence attitudes, one question asked American adults to state how much they agreed with the following sentence: “I will become financially independent at some point in my life.” For answers, people could choose “Strongly agree,” “Agree,” “Neutral,” “Disagree,” or “Strongly disagree.”

Survey: 1,506 Respondents between June 18 and 23, 2022 were asked whether they agreed or disagreed with this statement:

I will become financially independent at some point in my life.

Results:

28.2%

Strongly Agree

27.2%

Agree

28.1%

Neutral (I neither agree nor disagree)

Disagree

9.5%

Strongly Disagree

Findings

According to the results, many adults around the US do maintain a sense of optimism about their financial futures. A total 1,506 Americans responded to the survey, with 55.4% answering either “Strongly agree” or “Agree” to the question. Just 16.5% reported that they disagreed with the statement. The rest – representing 28.1% of the survey group – responded “Neutral,” indicating they may feel unsure or ambivalent about their capability to become financially independent.

The fact that a large proportion of Americans still feel optimistic about their personal finances is a bright spot amid today’s economic volatility. As inflation soars, the threat of economic recession looms, and people struggle to recover from pandemic setbacks, many still believe in the possibility of financial independence.

Yet clearly these findings have a downside as well, given that almost 45% of respondents either lacked confidence in their ability to reach financial independence or were undecided. As the NFEC’s CEO, Vince Shorb, commented, “These survey data show that many people have given up on the American Dream. The findings point to a serious need to raise financial awareness and provide education so people can build confidence and optimism about their futures.”

While the survey does indicate that many people doubt their own money skills, that feeling may be partly attributed to how we define financial independence. The term is defined variously – check out this article for a summary: https://www.financialeducatorscouncil.org/financial-independence-definition. One end of the spectrum says financial independence occurs when you no longer have to work for income, while the other says it represents youth achieving financial autonomy from their parents. The broad differences between definitions may affect a person’s perceptions about what financial independence means in one’s own life.

No matter the definition to which you ascribe, these survey findings are cause for both hope and concern. The American Dream is still possible. But many Americans need education that gives them practical action steps to become more financially secure. Then perhaps their pessimism about reaching financial independence will dissolve and a brighter future will come into view.