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Americans' feelings on financial security

If we move to a truly cashless society, it won't be much of an adjustment for most Americans. Sixty-nine percent of Americans carry $50 or less in cash on a daily basis, and an additional 9 percent don’t carry any cash at all.

Only 7 percent of Americans carry $100 or more, with the highest income households more likely to do so than others. 

Regarding financial security, consumers are again feeling downbeat; the Financial Security Index registered 98.7, declining for a second month in a row and indicating deterioration compared with one year ago for the second time in 2014.

The primary culprit in this month's decline is job security, as Americans apparently were not swayed by the strong April jobs report. Feelings on job security turned negative for the first time in six months.

Savings, consistently a sore spot of financial security, declined further, with those feeling less comfortable with their savings outnumbering those more comfortable by a 2-to-1 margin.

On a brighter note, net worth is now the strongest component of financial security, with just 1 in 6 Americans reporting a lower net worth than one year ago. Steady or rising home prices around the country and a stock market near record highs are behind this.

Regarding their overall financial situations, Americans are currently neutral. Just half say their overall financial situation is the same as one year ago, while the remainder are evenly split between saying it is better now and those saying it is worse.

For more information on this month's Financial Security Index, just visit Bankrate.com. I'm Greg McBride.

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