A Financial Plan, The StatisticsMar 02, 2023
As a financial coach, I often come across individuals who have not yet created a clear financial plan for their future. It’s understandable, as creating a financial plan can seem daunting and overwhelming, especially if you're not sure where to start. However, having a financial plan is essential for achieving long-term financial stability and achieving your financial goals. In this article, we’ll take a look at the latest statistics on the percentage of professionals that have a clear financial plan.
According to a recent survey conducted by the Certified Financial Planner Board of Standards, Inc. (CFP Board), only 35% of American adults have a written financial plan. This means that the majority of Americans do not have a clear idea of their financial goals, how they plan to achieve them, and what steps they need to take to reach them.
The survey also revealed that the top financial concerns for Americans are saving for retirement (64%), paying off debt (42%), and building an emergency fund (35%). Despite these concerns, many people are still not taking action to address them. In fact, the survey found that only 46% of Americans have a specific plan in place for retirement savings, and only 25% have a plan for paying off debt.
The lack of a financial plan can have serious consequences for individuals and their families. Without a plan, it's easy to lose track of spending, miss out on potential investment opportunities, and accumulate unnecessary debt. A financial plan can help individuals set achievable goals, make informed decisions about their money, and stay on track towards financial stability and success.
In addition to the CFP Board survey, a report by the National Financial Educators Council found that only 24% of American adults have a high level of financial literacy. This means that many people lack the knowledge and skills needed to make informed financial decisions and create a solid financial plan.
Fortunately, there are steps individuals can take to improve their financial literacy and create a clear financial plan. Seeking the guidance of a financial coach or advisor can be a helpful first step. These professionals can provide personalized advice and guidance based on an individual's specific to your financial situation and goals.
There are also many resources available online, including budgeting tools, financial calculators, and educational resources. Taking the time to learn about personal finance and investment strategies can help individuals make informed decisions and set achievable goals.
It's clear that having a financial plan is essential for achieving long-term financial stability and success for you and your family. However, many Americans are still not taking the necessary steps to create a plan or improve their financial literacy. By seeking the guidance of a financial coach or advisor and taking advantage of available resources, you can take control of your finances and work towards a bright financial future.