The Financial Industry Regulatory Authority (FINRA) surveyed nearly 1,500 American adults, and found that nearly half of respondents have difficulty covering monthly expenses and paying bills. Of these, 14% said it was very difficult to keep their noses above water, and 35% said it was somewhat difficult.
To make ends meet, 9% said they've taken a loan from their retirement accounts during the past 12 months, and 5% have taken a permanent "hardship withdrawal." Only 49% of respondents have a "rainy-day" fund consisting of enough money to cover three months of expenses in case of illness, job loss or other emergencies.
Household expenses during the past year exceeded income for 12% of those surveyed, and were roughly equal to income for 36%. One out of three respondents said they had a large and unexpected drop in income during the past year because of the economic downturn.
Finally, when it comes to financial literacy, 37% thought their financial knowledge was at the top of the scale. However, only 30% were able to correctly answer a basic question about interest rates and inflation, plus a question about risk and diversification.
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