Financial Security Index drops in May
Despite a strengthening jobs market, American financial security dropped in May, according to a monthly survey by Bankrate.com. It was the second monthly drop in a row.
Bankrate's Financial Security Index declined to 98.7 from April's mark of 100.5. Last May, the FSI measured at 100.2. Any index reading below 100 indicates that financial security has deteriorated over the past 12 months.
Bankrate Chief Financial Analyst Greg McBride said that feelings on job security turned negative for the first time in six months. The percentage of American workers feeling more secure in their jobs declined from 24 percent in April to 18 percent in May.
McBride added that the comfort among consumers with their savings declined further in May. Those feeling less comfortable with their savings outnumbered those who are more comfortable by a 2-to-1 margin. Meanwhile, Americans continued to be less comfortable with their debt, compared with the same period last year.
Thanks to rising home prices and a booming stock market, net worth is now the strongest component of financial security. Just 1 in 6 survey respondents reported a lower net worth than one year ago, McBride said.
The Financial Security Index was based on a survey of 1,002 people during the first week of May. The survey is conducted every month by Princeton Survey Research Associates International.
If you think your savings could use a boost, take a look at the savings rates at Bankrate.com.