News & Resources

Consumers: More or less confident in their personal finances?

Nov 04, 2011 Philip Burgess

Perhaps in response to growing economic uncertainty, consumers may be losing faith in their personal finances, according to the most recent Financial Security Index from Bankrate. The index fell 1.1 points to reach 92.8 in October - the second lowest reading of the year. "The weak economy, ailing housing sector and volatile stock market continue to undercut consumers' feelings of financial security," said Greg McBride, senior financial analyst at "Americans' feelings about their savings, debt and net worth continue to erode." Only 17 percent of Americans reported their overall financial situation is better than it was a year ago, while a mere 11 percent claim they are more comfortable with their savings compared to 12 months ago. Both readings mark a record-low for the index. The study found similar pessimism regarding consumers' feelings on personal debt, savings and net worth. However, the findings are somewhat contrary to recent study from COUNTRY Financial, which noted an increase in personal financial security in October over August, with 36 percent of respondents assigning a positive rating to their financial security.