Here’s how Americans are feeling about their finances now

00:00 Speaker A

One in three Americans say their financial situation has gotten worse over the past year. That’s according to a new Yahoo Finance Harris poll. We’re breaking down some of the survey’s key findings. Yahoo Finance personal finance editor, Casey Bond joins me now. So, Casey, this is a very comprehensive breakdown. Let’s start with how Americans are feeling about their finances. What else stood out to you in the survey?

00:26 Casey Bond

Um, sure. Well, our survey results really show a country that is divided when it comes to their financial health and knowledge. Um, at a high level, we found that younger generations, particularly Gen Z, tend to be more optimistic about their current financial standing and ability to save. Um, on the other hand, women tend to be a lot less positive about their finances than men. Um, and we also found that lower income households generally around under 50k a year, um are actually less likely to turn to debt to manage their budgets better versus higher earners.

01:04 Speaker A

That’s interesting. Now, let’s zero in on savings. How are Americans feeling about that financial cushion?

01:13 Casey Bond

Um, right. So, um, again, the results were pretty divided. Uh about a quarter of our respondents said that they were very or completely satisfied with their savings over the last year. However, again, men were much more likely, um than women to say that they were satisfied with their savings progress. Um, and it might seem like, you know, women are maybe not as good at saving money or um, you know, men are inherently better at saving money. Um, but we had one of our reporters actually dig into this a little bit more to find out why this gap exists. And uh one of the reporters that she spoke to said that there are some financial challenges that are unique to women. Um, for example, they’re still paid less than men, um on average. And there’s also this cultural expectation for women to leave the workforce or um take lower paying more flexible jobs in order to provide caregiving within the household. So that kind of gives a little bit more context to some of these results.

02:33 Speaker A

Mhm. And for those that are worried about their savings, how are they planning to deal with a potential cash flow shortfall?

02:44 Casey Bond

Sure. So, when you’re in a situation where your expenses are exceeding your income, there are several steps you can take from, you know, dipping into your savings to maybe taking out a personal loan. Um, we found that about 40% of our respondents would actually cut their spending first, um which is a little bit surprising given today’s economic environment and how inflated prices are. Um, and particularly households earning under 50k again are the ones who are most likely to say that they would cut their spending first. Um, another 26% said that they would dip into their savings. Um, 23% said that they would use a credit…