Released: September 10, 2013

Consumer Action Co-Hosts Discussion, Offers Tips in Response to New Financial Health Research

Financial health significantly impacts attitudes about personal financial literacy, survey says

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San Francisco, CA, September 9, 2013 — The financial health of consumers struggling to recover from the recession is closely linked to the complexity of their personal financial situation, according to new research released today by Aite Group and Chase Blueprint®. The survey of 1,242 U.S. consumers, entitled “How Have Americans' Financial Lives Rebounded From the Recession?”, provides an in-depth look at how consumers fared during the recession and the steps they took to improve their financial situation. Consumer Action has partnered with Chase Blueprint to provide a forum to discuss the study’s findings and offer actionable tips that consumers can begin using immediately to maintain or improve their finances.

“Despite an overarching message that the nation’s economy is again humming along, we know that many consumers are still struggling,” said Linda Sherry, Consumer Action’s director of national priorities, and one of the panelists who will discuss the study’s findings. “We’re very pleased to have this new research into how consumers have fared since the recession, and we look forward to launching a discussion that will help individuals and families improve their personal economic outlook.”

Financial complexity and financial health are closely intertwined, the survey found. Of those surveyed whose financial health has declined since the recession, 31 percent said their financial life is very complex, citing a variety of financial penalties and multiple loans. Yet of those who say their financial health has improved since the recession, 43 percent say the complexity of their finances has decreased.

Borrowing from a variety of sources also increases the complexity of consumers’ financial lives. In fact, the survey showed that half of the consumers whose financial health declined post-recession borrowed from friends and family in 2012, up from 34 percent in 2008. In addition, the percentage of those who took out payday loans, direct deposit advances and small loans increased from 2008 to 2012. Conversely, the survey found that borrowing activity remained relatively stable among those whose financial health improved post-recession.

Increased financial discipline and literacy
The Aite Group/Chase Blueprint survey showed that the recession caused many consumers to be more disciplined about their finances and consider accepting more financial advice than before.

• Two-fifths of respondents said they are saving more today than they did during the recession.
• Among the roughly quarter of consumers who say their financial health has improved since the recession, approximately 60 percent pay their credit card balance in full nearly every month. That is up significantly from 2008, when 43 percent paid their balance in full.
• Fifty-five percent consider themselves to be financially literate today, a 14 percent increase from 2010.
• Forty percent used tools provided by their financial institution or talked with their financial institution to help them manage their finances.
• However, among consumers whose financial health declined post-recession, one in three say they consider themselves financially illiterate.
• In contrast, only 12 percent of consumers whose financial health improved or stayed the same said they were financially illiterate.

Generational differences
The survey also showed that younger consumers were disproportionally impacted by the recession, both positively and negatively.

• Nearly 40 percent of Gen Yers’ financial health has improved since the recession, but approximately a quarter of this same group has seen a decline in their financial health during the same time period.
• Among Gen Xers, half have seen no change in their financial health, 28 percent have seen an improvement and 22 percent have suffered a decline.
• Older generations reported more stability, with 50 percent of Gen Xers, 60 percent of Baby Boomers and 75 percent of seniors saying their financial health hasn’t changed since the recession.

Join us for a live discussion about the findings
On September 26, 2013, at 1 p.m. PT (4 p.m. ET), Consumer Action, a nationally recognized consumer advocacy organization, and Aite Group will host a Google Hangout on Air sponsored by Chase Blueprint to discuss the survey results and steps consumers can take to improve their own financial lives. You can join the Hangout live on Consumer Action's YouTube page and Google Plus page.

Download our tip sheet
“On the Rebound: Post-recession Tips for Fostering Your Personal Economic Recovery” provides actionable tips and links to resources that consumers can begin using today to maintain or improve their financial situation. You can download the sheet from the Consumer Action website.

About Consumer Action

Consumer Action (www.consumer-action.org) has been a champion of underrepresented consumers nationwide since 1971. A non-profit 501(c)(3) organization, Consumer Action focuses on consumer education that empowers low- and moderate-income and limited-English-speaking consumers to financially prosper. It also advocates for consumers in the media and before lawmakers to advance consumer rights and promote industry-wide change. Nearly 7,500 community and grassroots organizations benefit annually from the organization’s extensive outreach programs, training materials and support.

About Aite Group

Aite Group (www.aitegroup.com) is an independent research and advisory firm focused on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, securities & investments, and insurance, Aite Group's analysts deliver comprehensive, actionable advice to key market participants in financial services. Headquartered in Boston with a presence in Chicago, New York, San Francisco, London, and Milan. Aite Group works with its clients as a partner, advisor, and catalyst, challenging their basic assumptions and ensuring they remain at the forefront of industry trends.

About Chase Blueprint

Blueprint is available free of charge to new and existing Chase credit cardholders. It's simple to set up, easy to use and customizable. With Blueprint, cardholders can save money and pay down balances faster. More information is available at www.chase.com/blueprint. Drawing upon the expertise of Chase and respected experts, Chase Blueprint’s Resource Center for Mindful Spending is a free knowledge center available at Chase.com/MindfulSpending and includes additional research, infographics, videos and resources focused on consumer spending and personal financial management.

About Chase

Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading global financial services firm with assets of $2.4 trillion and operations in more than 60 countries. Chase serves more than 52 million consumers and small businesses through more than 5,600 bank branches, 18,700 ATMs, credit cards, mortgage offices, and online and mobile banking as well as through relationships with auto dealerships. More information about Chase is available at www.chase.com.