The International Your Money Financial Security Survey conducted by SurveyMonkey found that at least half of adults in major economies, such as the U.S., Australia, Spain, and Mexico, report feeling stressed about their personal finances, with inflation being one of the main reasons. Additionally, a significant number of respondents stated that they feel worse-off financially than their parents and are pessimistic about their children’s financial futures.
In the surveyed countries, between half and two-thirds of people consider themselves to be part of the middle class, except in the U.K. where only 37% identified as such. Despite the middle class traditionally being seen as financially comfortable, between 45% and 62% of those who placed themselves in this category described themselves as “living paycheck to paycheck.” This indicates a widespread struggle with financial stability among those who consider themselves to be part of the middle class.
Half of adults in Australia, Germany, and the U.K. reported feeling worse off financially than they were five years ago. Only adults in Singapore and Mexico were more likely than not to say they were better-off financially than their parents. Inflation was a commonly cited source of financial stress, along with a lack of savings, economic instability, and rising interest rates.
Despite global economic growth slowing down, most developed economies have managed to avoid the recessions that were forecasted amid high inflation and interest rate hikes. While labor markets have remained resilient, numerous surveys have indicated that consumer sentiment is grim, due to the impact of price rises in household bills and everyday goods. This disconnect between the performance of the economy and the financial stress felt by individuals highlights the challenges faced by many in managing their personal finances.
The study conducted by SurveyMonkey involved 4,342 adults and was carried out in March. The results, released on Wednesday, revealed a widespread sense of financial stress and unease among adults in various countries. Eric Johnson, CEO of SurveyMonkey, noted that despite the overall health of the global economy, around half of adults in every country studied were stressed about their personal finances. This suggests that economic growth and stability may not necessarily translate to improved financial well-being for individuals.
Overall, the survey findings point to a significant level of financial stress and insecurity among adults in major economies around the world. Inflation, a lack of savings, economic instability, and rising interest rates were identified as key factors contributing to this stress. Despite the resilience of labor markets and the avoidance of predicted recessions in many developed economies, individuals continue to struggle with financial stability and face challenges in achieving financial security. This highlights the ongoing importance of addressing economic disparities and supporting individuals in managing their personal finances effectively.
