Cygnet Institute has been designated by CEFEX, the Centre for Fiduciary Excellence as a nonprofit Investment Support Services (ISS) provider for plan sponsors and plan participants to educate adults in economic matters, advance their financial literacy and enhance their ability to make good financial decisions in self-directed retirement plans and non-retirement accounts. For more information click the seal or go to www.CEFEX.org.
The Causes
Ignoring the small stuff
The average American pays $237 a month for subscription services, according to a 2019 report from West Monroe Partners. Yet 84% of these consumers underestimated the total they spent every month on these fees, and only 6% estimated their total spend correctly. (Wi-Fi, mobile service, Netflix, Spotify, Birchbox, Dollar Shave Club, GoDaddy, PlayStation Now, iCloud, Fitbit, etc.)
Misdirected love of family
Almost 65% of parents with children under 18 said they would be fine with adding to their card debt during the holiday season and more than half (56%) said that it was fine to do so, according to a poll conducted by CreditCards.com.
Not focusing on key goals
According to the latest survey from the COUNTRY Financial Security Index®, prospective homebuyers delay buying because they struggle to save up enough for a down payment. In fact, 46% of millennials and 40% of Americans overall cited affording a down payment as the greatest financial barrier to homeownership.
Keeping up with the Joneses
The Charles Schwab’s 2019 Modern Wealth Index survey found that 48% of millennials spend more money than they can afford to participate in experiences with friends and 49% were influenced by social media to spend money on experiences.
Holiday spending euphoria
Holiday shoppers racked up an average of $1,325 of debt in 2019, according to an annual survey conducted by Magnify Money. This study also found that Gen Xers added the most debt, charging an average of $2,076.
Testimonials