Survey reveals most consumers don’t track their money
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With home prices remaining elevated in many markets and the likelihood of more interest rates to come, homebuyers might be keeping tight control of their budgets.
But a new survey reveals that’s not the case for many including 2 in 5 who have never had a budget.
The poll by the Certified Financial Planner Board of Standards focused on those aged 35 to 65 and found that 77% said they found it easy to spend money and 1 in 3 spend more than they save. More than half don’t keep track of their money.
Despite their apparent slack approach to budgeting, most respondents recognize the benefits of having a budget; 68% agree that having a household budget would help them reach personal and family goals, and 67% say that if they had a budget it would have a great impact on their confidence in their financial security.
Consumers who have a budget feel more in control (62%), more confident (55%) and more secure (52%).
Misunderstanding of budgets
The survey found that many respondents think they have a budget (43%) because they use receipts and bank/credit card accounts to track their spending.
The CFP Board says that this is not a replacement for having a system in place that outlines their spending for specific household needs over a period of time.