Acorns, a leading saving and investing app, recently released its 2024 Money Matters Report™, highlighting the growing fear among young adults about becoming homeless due to their financial situation. The report shows that approximately a third of Gen Z and Millennials fear experiencing homelessness, compared to only 11% of Boomers and older respondents. The top financial concerns among adults include the cost of living, inflation, and debt, with over a quarter of Americans surveyed admitting to never having had an emergency fund.
CEO Noah Kerner acknowledges the understandable fear of potential homelessness when facing job insecurity, inflation, and a lack of borrowing options. The Department of Housing and Urban Development reported a 12.1% increase in homeless Americans in its 2023 point-in-time report, indicating a concerning trend. Additionally, concerns about global war and conflict, AI, and climate change also weigh heavily on people’s financial security, with over half expressing worry about these issues.
The report also emphasizes the importance of early financial literacy education on future financial security, with two-thirds of Americans believing they would be better off today if they had received more financial education earlier in life. Users of financial planning tools like Acorns and financial advisors are more optimistic about their future financial security than the broader survey pool. Sadly, almost a quarter of American adults did not receive any financial literacy education as children, highlighting a gap that could have negatively impacted their financial security.
Kerner stresses the critical nature of financial education, as knowledge empowers individuals to make better financial decisions. With financial literacy not being widely taught in schools, many people lack the necessary foundation to manage their personal finances effectively. Acorns aims to educate its users at the moment of decision-making, encouraging active learning to improve financial literacy and decision-making skills.
Looking ahead, the report suggests that financial anxieties will continue to persist, with only 35% of those surveyed expecting to be more financially secure next year. The majority anticipate their financial security to remain about the same, indicating ongoing challenges and uncertainties in the financial landscape. As the world grapples with economic instability, global conflicts, technological advancements, and environmental concerns, it is crucial for individuals to prioritize financial education and planning to navigate these challenges and secure their financial future.
