Findings from a Financial Industry Regulatory Authority (FINRA) Investor Education Foundation study maintains adults generally fared better in 2021 than in the decade leading up to the pandemic.
“Our study adds to a growing body of evidence that many U.S. adults were able to fortify their personal finances during the COVID-19 pandemic, despite the many economic disruptions it has triggered,” FINRA Investor Education Foundation President Gerri Walsh said. “At the same time, the research shows that some segments of the population that have historically struggled financially continued to do so.”
Key study findings include 53 percent of respondents indicated they had three months of emergency savings last year, in comparison to 49 percent in 2018 and 35 percent in 2009; bolstered unemployment benefits and stimulus payments stemming from the pandemic may account for a portion of the financial resilience documented in the study; stimulus funds were most frequently used to make purchases or pay bills while some Americans added the money to savings or paid down debt.
“The study found that higher financial literacy is associated with greater financial capability, a finding that underscores the importance of continued focus on enhancing financial education,” Walsh said.
According to the study results, younger adults possessing a high school diploma or less and those who identify as African American or Hispanic/Latino were most likely to experience unexpected income drops in 2021.