Financial Security Index Charts » Consumers Say Financial Security ImprovesWhile it's too early to proclaim that Americans are in a festive mood about their personal finances, they have finally crossed the threshold from negative to positive territory.In May, Bankrate's Financial Security Index hit more than 100 for the first time since polling began in December 2010, registering at 100.8. A reading of 100 indicates that financial security is unchanged from one year ago, while any number higher than 100 indicates improved financial security, and any number less than 100 is a sign of worsening financial security.Bankrate's Financial Security Index gauges how Americans feel today versus a year ago on vital financial matters. An index value of less than 100 indicates declining levels of financial security; a value greater than 100 reveals higher levels of security compared to 12 months ago. Add this graph to your page ‹› get code Add to website or blog X Select All . Press Ctrl + C to copyClose
Financial Security Index Charts » Consumers Say Financial Security Improves
While it's too early to proclaim that Americans are in a festive mood about their personal finances, they have finally crossed the threshold from negative to positive territory.
In May, Bankrate's Financial Security Index hit more than 100 for the first time since polling began in December 2010, registering at 100.8. A reading of 100 indicates that financial security is unchanged from one year ago, while any number higher than 100 indicates improved financial security, and any number less than 100 is a sign of worsening financial security.
OK, so Americans have only tiptoed across the threshold, but it's a start.
In recent months, the Financial Security Index has trended higher in small increments. Compared to poll results from a year ago, consumers are feeling better about job security, debt, net worth and their overall financial situation.
Savings is the lone sore spot. Consumers who are less comfortable about their savings this year outnumber those who are more comfortable with their savings by more than 2 to 1.
Feelings of job security surged 7 percentage points in May from the previous month, with 27 percent of Americans saying they feel more secure than they did 12 months ago. About one-fifth of the population (18 percent) still feels less secure about their jobs, while the majority (54 percent) feels about the same.
Other Financial Security Index findings:
Will these positive sentiments spill over into the economy? That remains to be seen. Bankrate's "wild card" question this month asks Americans if they have cut back on nonessential spending since the start of the year due to gasoline prices. Nearly 6 in 10 Americans (59 percent) say they have cut back on such optional activities as taking vacations or dining out.
"Oil prices may be at a three-month low, but consumers are still clearly feeling the impact of elevated gas prices in an environment of stagnant wages," says Greg McBride, CFA, Bankrate's senior financial analyst. "Those most likely to have cut back on spending due to gasoline prices are those with lower levels of income and education," he adds.
Sheyna Steiner delves into the effects of gas prices on the economy in her story, "When gas prices rise, consumers cut back."
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.
By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.