They have a financial cushion. Second, these consumers feel they have the capacity to absorb a financial shock. Whether they get in a car accident or are temporarily laid off from a job, they have a safety net such as savings, insurance, or family to avoid severe financial turmoil.
They have a plan. Consumers with a higher sense of financial well-being see themselves as on track to meet their financial goals. Whether they have a formal financial plan or not, they are actively working toward goals. Those goals may include saving to buy a car or home, paying off student loans, putting away money for retirement, or just having enough for emergencies.
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Factset: FactSet Research Systems Inc. 2015. All rights reserved.
Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.
