GITNUX MARKETDATA REPORT 2024

Must-Know Financial Planning Statistics [Current Data]

Highlights: The Most Important Financial Planning Statistics

  • 15% of respondents in a survey said they have a written financial plan.
  • Only 29% of people work with a financial planner.
  • Approximately 71% of Americans consider themselves financially literate.
  • Millennials engaging with a financial planner are 3 times more likely to have a high level of financial well-being.
  • 25% of American families with children under 18 do not have life insurance.
  • 44% of Americans with a financial plan save more money each year for retirement.
  • 43% of individuals who have a financial plan save 50% more each month.
  • 56% of people do not have a plan in place for their retirement savings strategy.
  • About 90% of people say financial planning helped them achieve their savings goals.
  • 50% of Americans have less than $10,000 saved by retirement age.
  • 53% of Americans do not have sufficient savings to cover an emergency.
  • Financial planning demand is expected to grow by 30% from 2014 to 2024 in the US.
  • 67% of financial planners say they acquired their clients through referrals.
  • 27% of Americans do not save any part of their income for retirement.
  • American students have a financial literacy score of 490, ranking 7th out of 15 countries.
  • Only 16.4% of U.S. students are required to take a personal finance class in high school.
  • 78% of people in the US live paycheck to paycheck.
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Financial planning is crucial for achieving financial security and managing your finances effectively. A Visual Capitalist survey reveals that 74% of Americans engage in financial planning, but only 15% have a written plan and 30% lack any long-term financial goals. Just 29% work with a professional planner, while 71% consider themselves financially literate.

OneFPA Journal’s 2018 research highlights that millennials working with financial planners are three times more likely to report high financial well-being. However, 25% of American families with children under 18 lack life insurance. Bankrate’s 2019 survey shows that 44% of individuals with a personal finance plan save more for retirement and 43% save 50% more per month. Still, 56% of people lack a proper retirement savings strategy, as reported by CNBC in 2019.

Investopedia’s 2014 article states that 90% of individuals achieved their savings goals due to personal finance plans, but Yahoo Finance’s 2017 study reports that 50% of older Americans have nothing in their 401(k) accounts. Furthermore, 53% of the population lacks sufficient emergency funds, as highlighted by Bank of America’s 2018 press release. The US ranks seventh out of 15 countries in financial literacy, with 16.4% of students required to take personal finance classes, according to the National Center for Education Statistics and Equifax’s 2016 report.

Lastly, 30% of citizens seek professional advice for budgeting and saving strategies, as reported by SmartAsset in 2015, and 67% of advisors acquire clients through referrals, per Investopedia’s 2012 article. However, 27% of respondents fail to set aside income for pension funds, as mentioned in MarketWatch’s 2017 story. These insights underline the importance of financial planning and its various aspects.

The Most Important Statistics
15% of respondents in a survey said they have a written financial plan. This statistic is significant in the context of Financial Planning Statistics as it highlights the importance of having a written financial plan. It shows that a significant portion of people recognize the value of having a plan in place to help them manage their finances and make informed decisions. This statistic can be used to encourage others to create a written financial plan and to demonstrate the potential benefits of doing so. Only 29% of people work with a financial planner. This statistic is a stark reminder of how many people are missing out on the benefits of working with a financial planner. It highlights the need for more education and awareness about the importance of financial planning and the value of working with a professional. It also serves as a call to action for those who are not currently working with a financial planner to take the necessary steps to ensure their financial future is secure.

Financial Planning Statistics Overview

Approximately 71% of Americans consider themselves financially literate.

This statistic is a telling indication of the importance of financial literacy in the United States. It highlights the need for individuals to be aware of their financial situation and to be able to make informed decisions about their finances. This statistic is especially relevant in the context of a blog post about financial planning statistics, as it serves to emphasize the importance of financial planning and the need for individuals to be knowledgeable about their finances.

Millennials engaging with a financial planner are 3 times more likely to have a high level of financial well-being.

This statistic is a powerful reminder of the importance of financial planning for Millennials. It highlights the fact that engaging with a financial planner can have a significant impact on one’s financial well-being, and that Millennials should take advantage of this opportunity to ensure their financial security.

25% of American families with children under 18 do not have life insurance.

This statistic is a stark reminder of the importance of financial planning. Without life insurance, families with children under 18 are at risk of facing financial hardship in the event of an unexpected death. This could mean that the surviving family members would be left with the burden of paying for funeral costs, medical bills, and other expenses. Having life insurance in place can provide peace of mind and financial security for families in the event of an unexpected death.

44% of Americans with a financial plan save more money each year for retirement.

This statistic is a powerful reminder of the importance of financial planning. It shows that having a plan in place can have a significant impact on one’s ability to save for retirement. It also highlights the potential benefits of taking the time to create a financial plan, as it can lead to greater savings and a more secure future.

43% of individuals who have a financial plan save 50% more each month.

This statistic is a powerful reminder of the importance of financial planning. It shows that having a plan in place can have a significant impact on one’s ability to save money each month. This statistic can be used to encourage readers to take the time to create a financial plan and to understand the potential benefits of doing so.

56% of people do not have a plan in place for their retirement savings strategy.

This statistic is a stark reminder of the importance of financial planning. It highlights the need for individuals to take proactive steps to ensure their financial security in retirement. It also serves as a warning that without a plan in place, many people may find themselves unprepared for retirement and unable to maintain their desired lifestyle.

About 90% of people say financial planning helped them achieve their savings goals.

This statistic is a powerful testament to the effectiveness of financial planning. It shows that when people take the time to plan their finances, they are more likely to reach their savings goals. This statistic is a great reminder that financial planning is an important part of achieving financial success.

50% of Americans have less than $10,000 saved by retirement age.

This statistic serves as a stark reminder of the importance of financial planning. It highlights the need for individuals to start saving early and to plan for their retirement. It also shows the potential consequences of not having a financial plan in place, as many Americans may not have enough saved to support themselves in retirement. This statistic is a powerful reminder of the importance of financial planning and the need to start saving early.

53% of Americans do not have sufficient savings to cover an emergency.

This statistic is a stark reminder of the importance of financial planning. It highlights the need for individuals to have a plan in place to ensure they are prepared for any unexpected expenses that may arise. It also serves as a warning to those who may be living paycheck to paycheck, as they may not have the resources to cover an emergency if one were to occur. Financial planning is essential for individuals to ensure they are able to weather any financial storms that may come their way.

Financial planning demand is expected to grow by 30% from 2014 to 2024 in the US.

This statistic is a powerful indicator of the increasing importance of financial planning in the US. It shows that more and more people are recognizing the need to plan for their financial future, and are taking steps to do so. This is an encouraging sign for those who are looking to make the most of their money and secure their financial future. It also serves as a reminder that financial planning is an essential part of any successful financial strategy.

67% of financial planners say they acquired their clients through referrals.

This statistic is a testament to the power of word-of-mouth marketing in the financial planning industry. It shows that referrals are a major source of new clients for financial planners, and that they are likely to be successful in acquiring new business through this method. This statistic is important for anyone looking to start a career in financial planning, as it demonstrates the importance of networking and building relationships with potential clients. It also serves as a reminder to existing financial planners to continue to cultivate relationships with their current clients, as they may be the source of future referrals.

27% of Americans do not save any part of their income for retirement.

This statistic is a stark reminder of the importance of financial planning for retirement. It highlights the need for individuals to take proactive steps to ensure they are saving for their future. It also serves as a warning that if individuals do not take the necessary steps to save for retirement, they may find themselves in a difficult financial situation later in life.

American students have a financial literacy score of 490, ranking 7th out of 15 countries.

This statistic is a telling indication of the state of financial literacy among American students. It reveals that, while American students may be relatively knowledgeable about financial matters, they still lag behind other countries in terms of their overall financial literacy score. This is an important reminder that, while financial planning is important, it is also essential to ensure that students are adequately educated in the fundamentals of financial literacy.

Only 16.4% of U.S. students are required to take a personal finance class in high school.

This statistic is a stark reminder of the lack of financial literacy among young people in the United States. With such a low percentage of students being required to take a personal finance class in high school, it is no wonder that so many young adults are struggling to make sound financial decisions. This statistic highlights the need for more education and resources to be made available to young people so that they can make informed decisions about their financial future.

78% of people in the US live paycheck to paycheck.

This statistic is a stark reminder of the financial struggles that many Americans face. It highlights the need for financial planning and budgeting to ensure that individuals are able to make ends meet and have a secure financial future. It also serves as a reminder of the importance of saving and investing for the future, as well as the need for financial education and literacy.

Conclusion

From these statistics, it is clear that financial planning is an important part of life for many Americans. Despite this, there are still a large number of people who do not have any kind of plan in place or lack the necessary knowledge to make informed decisions about their finances. This highlights the need for more education and resources on personal finance topics so that individuals can be better equipped to manage their money responsibly and achieve long-term financial security.

References

0. – https://www.newsroom.bankofamerica.com

1. – https://www.nces.ed.gov

2. – https://www.thecollegeinvestor.com

3. – https://www.onefpa.org

4. – https://www.bls.gov

5. – https://www.guidedchoice.com

6. – https://www.equifax.com

7. – https://www.finance.yahoo.com

8. – https://www.gobankingrates.com

9. – https://www.investopedia.com

10. – https://www.bankrate.com

11. – https://www.cnbc.com

12. – https://www.marketwatch.com

FAQs

What is financial planning and why is it important?

Financial planning is the process of organizing, managing, and allocating financial resources in order to achieve short-term and long-term financial goals. It is important because it helps individuals and businesses efficiently utilize their finances, grow their wealth, and safeguard their financial future.

What are the key elements of a solid financial plan?

The key elements of a solid financial plan include setting clear financial goals, creating a budget, establishing an emergency fund, managing debts, saving for retirement, and having proper insurance coverage to protect against unforeseen events.

How much should one save for an emergency fund?

It is generally recommended that individuals have an emergency fund sufficient to cover three to six months of living expenses. This amount can provide a financial cushion in case of unexpected expenses or loss of income, such as job loss or medical emergencies.

What is the difference between saving and investing?

Saving is the process of setting money aside, usually in a secure and liquid account (e.g., a savings account or money market fund), to cover short-term needs or emergencies. Investing, on the other hand, entails allocating money to assets with the expectation of generating returns over the long term, such as stocks, bonds, or real estate.

What is the importance of risk management in financial planning?

Risk management is crucial in financial planning as it helps individuals and businesses identify, assess, and prioritize potential financial risks. By implementing risk management strategies, like diversification of investments and having proper insurance coverage, one can mitigate or even prevent financial losses and achieve greater financial stability.

How we write our statistic reports:

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly.

See our Editorial Process.

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