Financial security is the new American dream
2 min read
Financial security is the new American dream. Our 2024 Global financial wellbeing report reveals financial anxiety is impacting work performance, productivity, as financial security becomes a top money goal.
American employees are feeling anxious about their financial situation. The 2024 Global financial wellbeing report has found that 57% of people in America, making less than $56K a year admit that they feel anxious and 45% say they feel shame about their current financial situation. Nearly half of those surveyed in the US (47%) said their financial wellbeing significantly impacts their performance at work.
“Cost of living increases are having many repercussions for American workers, bleeding into everything from their productivity and happiness at work to negatively affecting personal relationships,” said Tim Perkins, CEO of nudge global. “This is especially true for workers on either end of the financial spectrum–from low earners to high earners.”
Work performance and engagement
Fifty-six percent of Americans earning more than $120k said their financial wellbeing significantly impacts their work performance compared to 54% of those earning less than $19K annually. That is compared with 47% of people in the US who said that their financial wellbeing significantly impacts their work performance. Thirty percent of people across the globe said their financial wellbeing has stopped them from being engaged at work.
When it comes to different demographics, 60% of Americans under the age of 45 said that their financial wellbeing significantly impacts their work performance compared to 35% of those aged 45+. Workers under the age of 45 were also more likely to experience financial shame (54%) and anxiety (61%), and anger (49%) compared to those over the age of 45 (43%, 51%, and 35% accordingly). Just 27% of Americans aged 45 or higher said that financial stress has stopped them from working compared to 36% of those between the ages of 24-34. Those between the ages of 24-35 were also more likely to say that their financial wellbeing has stopped them from being motivated at work (51%).
Attitudes towards their employer
Overall, survey respondents in America believe (62%) that their employers are aware of their financial stress. American workers under the age of 45 (71%) are more likely to engage with their employers about their financial stress compared to just 25% of those over the age of 55 who check their finances at the door. Americans between the ages of 25-34 were the most vocal with employers about financial stress (73%), and were also less likely to view their employer relationship as transactional and were more likely (64%) to feel content about their financial situation compared to 55%.
Impact on relationships
Financial stress negatively impacts both professional and personal lives. Fifty-four percent of American survey respondents said their financial wellbeing affects their personal life and half said it impacts their relationships with friends, family, and colleagues. This is especially true for earners over $120 of which 57% said that their financial wellbeing impacts their relationships with friends, family, and colleagues. Americans under the ages of 45, are more likely to see their personal lives affected by their finances.
Financial goals and the “American Dream”
While buying a home has long been the American Dream, today’s workers are more focused on feeling financially secure. 92% of American respondents cited “financial security” as the top financial goal they are working towards; followed by growing a savings account (90%); and building an emergency fund (88%). 84% said they are confident they will achieve these financial goals. Those between the ages of 45-54 were more focused on financial security than any other group, with 46% saying that money is most important for this reason.
There are many factors that are stopping Americans from achieving their goals. The main reason being low levels of literacy and financial planning. Americans also cited unexpected expenses and insufficient income as barriers to feeling more secure and likely why growing a savings account and keeping to a budget remain the biggest priorities for survey respondents. Americans over the age of 55 are more likely to experience financial setbacks due to unexpected expenses (43%) compared to 34% for those under the age of 55.
“There is a strong connection between financial wellbeing and overall happiness, both at work and at home,” added Perkins. “Individuals and businesses should not ignore the correlation and the benefits of having financially healthy employees.”
Want more global trends like this? Download the full report, open a world of opportunity with the latest financial wellbeing sentiments, goals and motivations impacting employees today.