People who have a financial plan feel more confident about their ability to manage their finances and are more likely to report themselves as “living comfortably”—even if they are in lower income brackets, according to the latest survey from the Consumer Federation of America (CFA) and the CFP Board.
It is probably not surprising that those who have a financial plan are more likely to be saving for various goals and also to be saving more than nonplanners. However, the results of the 2012 Household Financial Planning Survey also indicate that the effects of planning—whether provided by a professional or achieved around the kitchen table—benefit those with lower incomes as well.
In a conference call discussing the survey results, Kevin Keller, CEO of the Certified Financial Planner Board of Standards, and Stephen Brobeck, executive director of CFA, pointed out a number of interesting data points.
While, as might be expected, those at higher income levels who had financial plans saved more than those who had no plans, even in lower income brackets those who had a plan were more likely to have savings for emergencies and and to pay off their credit card bills each month.