Half
of middle-income Americans worry about finances
WASHINGTON
(AP) -- Half of middle-income Americans
are worried about their finances despite
having built up wealth during the economic
boom that ended in 2001, new research shows.
Fifty
percent of adult Americans with annual incomes
between $25,000 and $75,000 said in a July
survey that they were worried about their
financial condition, and one in five within
that group was very worried. The survey,
released Monday, was commissioned by the
Consumer Federation of America and Providian
Financial Corp., a credit card issuer.
Some,
69 percent of people surveyed with incomes
under $25,000 said they were worried about
their finances, while one-third of those
earning over $75,000 said they were worried.
People
who are anxious about their finances are
likely to believe they have too little income
or savings, and as unemployment has risen
they also may be more concerned about losing
their jobs, the survey found.
''The
good news is that most middle-class Americans
built greater personal wealth during the
late 1990s,'' said Stephen Brobeck, the
consumer group's executive director. ''The
bad news is that this wealth is not sufficient
to meet major emergencies, let alone provide
for a comfortable retirement. No wonder
so many today are worried about their financial
condition.''
The
two groups also made public an analysis
of Federal Reserve household income data
by Catherine Montalto, a consumer economist
at Ohio State University. It showed that
during the boom from 1995 to 2001, the net
wealth of the typical middle-class household
rose 23 percent, from $60,000 to $74,000.
While stock holdings grew, stocks still
represented a minor portion of net wealth
for the typical middle-income family.
That
meant that middle-class Americans were relatively
unaffected by the stock market decline that
began in early 2001, compared with affluent
Americans, according to Montalto's analysis.
Consumer
Federation and Providian said they released
the research in part to demonstrate the
need for the free services of a program
called America Saves, which helps people
without savings to save and build wealth.
The program offers consumers free services
including workshops, coaching, savers clubs,
advice from certified financial planners
by phone or Internet, and low-balance, no-fee
savings accounts at participating banks
and credit unions. It is possible to enroll
online.
The
survey polled about 1,000 adults nationwide
in July. The margin of error was plus or
minus three percentage points.
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