By: Daryl Tolliver
The booming economy that existed before the financial collapse of 2007 has yet to re-emerge, and a large percentage of Americans feel the economy may never see that type of vitality again.
These sentiments were expressed in the latest Country Financial Security Index, which measures consumers' optimism about the state of the economy as well as their own personal finances. According to the data, 27 percent of respondents said they believe the economy will never return to pre-recession levels, while more than 50 percent said that if the economy improves to these standards, it won't occur until 2015 or later. The state of the economy also has a measurable impact on consumers' own sense of financial security, the study showed. Sixty-three percent of respondents said they are at least somewhat confident that they can reach their goals in 2013, and 27 percent said they are not confident at all.
When it came to feeling more financially secure, most respondents provided answers related to employment. For example, 26 percent said a higher-paying position would make them feel more stable, and 16 percent cited improved job security as a factor in financial security.
Americans make changes to ride out the economy
Following the recession, many consumers made a number of permanent changes to their spending habits and lifestyles to avoid falling into a precarious financial situation. Thirty-five percent of consumers said they downsized or cut spending to make ends meet, and other 16 percent said budgeting became more heavily integrated into their finances. Eleven percent curbed purchases with credit cards and 4 percent began investing more conservatively. Thirty percent said they adopted all of the above actions.
"With the most optimistic believing a full economic recovery is years away, the need for people to take control of their money has never been greater," says Joe Buhrmann , manager of financial security support at Country Financial. "It's encouraging a majority are confident they can meet their financial goals."
Despite smarter money management tactics, a separate study revealed that more consumers are expected to take on additional credit card debt in the future as they become more comfortable spending money. While this may be the case, analysts say it's also likely that consumers will continue to search for value through their financial products, and seek out cards with reward programs or cash-back earnings.