Statistics on Consumer Financial Wellness and Personal Financial Management

For a majority of consumers, money is the biggest stressor in their lives. Money is the No. 1 factor that negatively impacts mental health and is one of the top reasons for divorce. Financial services providers have a tremendous opportunity to help consumers build financial strength and improve their financial outcomes. 

MX’s research continuously looks at how consumers feel about their finances, their behaviors, and how financial institutions can help them build and maintain financial strength. Here’s our collection of the top insights, statistics, and trends from our consumer research reports on financial wellness. 

In this post, you’ll find stats and graphics related to: 

• The State of Consumer Finances
• Investing for the Future
• What Consumers Want from Financial Providers
• Financial Management and Expectations by Generation
• The ROI of Financial Wellness

When it comes to personal financial management and budgeting, it's something that everyone needs, whether your income is high or medium or low. We all need that support. And so having guided online financial advice is vital.

The State of Consumer Finances

• 53% of consumers say money is a source of stress for them. Additionally, 52% agree thinking about money makes them anxious. (How to Keep Consumers From Breaking Up with Banks, 2024) 
• Money is the No. 1 factor that negatively impacts mental health and is one of the top reasons for divorce. (Financial Wellness, 2023)

• 13% of consumers do not always have enough to pay for everyday necessities and 26% are worried about how they would cover unexpected expenses. (What is Financial Wellness?, 2023) 

• Nearly one-third of consumers are confident in their ability to cover any expenses, with Baby Boomers (41%) and Millennials (34%) most confident. Men are more confident than women with 39% of men reporting they are confident in their ability to cover any expenses compared to 25% of women. (What is Financial Wellness?, 2023)

• 65% of consumers have cut items from their budget to save money. This is highest among Gen X at 72%. (What is Financial Wellness?, 2023) 

• 41% of consumers are carrying a balance month-to-month on their credit cards. This is highest among Millennials (44%) and Gen X (48%). (What is Financial Wellness?, 2023)

• 39% of consumers say they pay off the full credit card balance every month when asked what best describes how they use a credit card. (What is Financial Wellness?, 2023)

• 11% of consumers only have a credit card for emergencies and 17% don’t have a credit card at all. (What is Financial Wellness?, 2023)

• Gen Z is least likely to have a credit card — 21% say they don’t have one, compared to 11% of Baby Boomers. (What is Financial Wellness?, 2023)

• 40% of consumers are depositing less money into savings or investment accounts in the face of a potential recession. Only 24% agree they have moved money away from investment accounts due to market fluctuations. (What is Financial Wellness?, 2023) 

• Across generations, we asked what statement most closely aligns with their current perspective on applying for loans. The majority of Gen Z and Millennial respondents were more aligned to paying in full rather than carrying a loan. On the other side, the largest portion of Gen X and Baby Boomers align with the statement that loans are necessary for larger purchases such as a home or vehicle. (What is Financial Wellness?, 2023) 

Investing for the Future

• Only 30% of Americans have a long-term financial plan that includes savings and investment goals. (Financial Wellness, 2023)

• 45% of consumers are not currently contributing to a 401(k) account. (What is Financial Wellness?, 2023) 

• Only 38% of respondents are confident they will be able to retire comfortably. Most alarmingly, this includes just 40% of Baby Boomers — those closest to retirement age. At the same time, less than half of those who work full-time (49%) are confident they will be able to retire comfortably. (Consumer Money Matters, 2022)

• Why do consumers feel unprepared for retirement? Forty-six percent of respondents regularly save for retirement, with 26% also taking full advantage of the employer match on their 401(k). However, 37% do not have retirement savings. This is consistent across all generations. (Consumer Money Matters, 2022)

• When asked about 401(k) accounts, only 1 in 4 respondents had one. This is even lower among Gen Z — only 13% indicated they have a 401(k) account. (Consumer Money Matters, 2022)

What Consumers Want from Financial Providers

• 33% of consumers feel financial providers don’t do enough to support their financial needs. Among Millennials (45%) and Gen X (42%), this rises to nearly half of consumers who don’t feel providers do enough. (What Influences Where Consumers Choose to Bank, 2023)

• 79% of consumers expect their financial provider to proactively alert them to issues related to their finances (such as upcoming payments due, low account balances, etc.). (What Influences Where Consumers Choose to Bank, 2023)

• Financial topics where consumers want education or support (How to Keep Consumers From Breaking Up with Banks, 2024): 
• Investing (40%)
• Paying off debt (33%)
• Creating and managing a budget (33%)
• Saving for retirement (26%)
• Managing finances across a household (24%)
• Maximizing rewards or points (19%)
• Managing subscriptions or recurring charges (18%)

• When asked what question is most important to be able to answer when it comes to managing finances, consumers say (How to Keep Consumers From Breaking Up with Banks, 2024): 
• Am I spending more than I should? (22%)
• How can I cut expenses? (20%)
• How much can I put towards debt or savings? (19%)
• Am I saving enough for retirement? (15%)
• How am I tracking against my budget? (13%)

• The top financial goal for consumers across generations in 2024 is paying off credit card debt (19%). This is highest among Baby Boomers (22%) and Gen X (22%). (How to Keep Consumers From Breaking Up with Banks, 2024)

Financial Management and Expectations by Generation

• When asked what best describes how they currently track and manage finances (How to Keep Consumers From Breaking Up with Banks, 2024): 
• 40% of consumers said they only check their finances through their financial accounts
• 21% use a budgeting tool or app 
• 20% use a spreadsheet or other manual process
• 15% of consumers say they don’t track their finances

• 55% of consumers see their financial provider as a partner in helping them reach their financial goals. Millennials and Gen X feel even stronger here — 62% of Millennials and 60% of Gen X agree compared to 41% of Gen Z and 55% of Baby Boomers. (What Influences Where Consumers Choose to Bank, 2023)

• When it comes to current satisfaction with the financial account they use most often, financial wellness-related features ranked the lowest in satisfaction numbers. Less than half were satisfied with insights and recommendations to help manage their money (48%), and budgeting and savings tools (48%). (What Consumers Want from Financial Providers, 2023)

• Nearly one-third of Gen Z respondents (31%) live with their parents or another relative and do not pay rent. And, parents are playing a role in helping their adult Gen Z children on everything from car insurance to groceries. In most categories, Gen Z respondents received full support from their parents twice as often as Millennials. (Consumer Money Matters, 2022)

• Here are the features that consumers most want for financial wellness (What Consumers Want from Financial Providers, 2023): 
  • Gen Z 
    • 36% Automated insights created based on financial data
    • 32% Automatic savings options, such as rounding up to the nearest dollar on purchases and depositing in savings
    • 31% Educational programs to teach you how to become financially strong
    • 26% Ability to set up customized goals such as savings, debt repayment, etc.
    • 24% Automated categorization of transactions to help understand where money is going

  

  • Millennials
  • 33% Educational programs to teach you how to become financially strong
  • 27% Predictive insights on what your account balance will be on a future date based on spending habits
  • 25% Personalized recommendations on where you can make changes to improve finances
  • 25% Proactive reminders to pay bills, save money, etc.
  • 24% Automated categorization of transactions to help understand where money is going

  

  • Gen X
  • 36% Educational programs to teach you how to become financially strong
  • 31% Automated insights created based on financial data
  • 29% Debt repayment tools like calculators to estimate how much time it will take to save money / pay off debt
  • 25% Personalized recommendations on where you can make changes to improve finances
  • 23% Automatic savings options, such as rounding up to the nearest dollar on purchases and depositing in savings

  

  • Baby Boomers
  • 34% Educational programs to teach you how to become financially strong
  • 28% Debt repayment tools like calculators to estimate how much time it will take to save money / pay off debt
  • 26% Budgeting tools
  • 25% Predictive insights on what your account balance will be on a future date based on spending habits
  • 24% Automatic savings options, such as rounding up to the nearest dollar on purchases and depositing in savings

  

  The ROI of Financial Wellness

  • MX looked closely at the behavior of more than 10 million consumers over 12 months and found that engagement with financial wellness tools is key to growing and retaining deposits. (The Cure for Lost Deposits, 2023)
  • Consumers who interact with MX’s PFM tools at least one day during their first month are 176% more likely to be digitally engaged after one year than those who don’t. (The Cure for Lost Deposits, 2023)
  • Consumers who establish direct deposit during the first 30 days of their banking relationship are 76% more likely to be digitally engaged a year later than those without direct deposit. (The Cure for Lost Deposits, 2023)
  • Consumers who connect at least one or more external financial accounts are 48% more likely to be digitally active a year later than those who don’t. (The Cure for Lost Deposits, 2023)
  • Consumers who make at least one mobile transfer during their first month are
    195% more likely to be digitally engaged a year later than those who don’t. (The Cure for Lost Deposits, 2023)
  • Consumers who log in at least once during their first month are 26% more likely to be digitally engaged after a year. (The Cure for Lost Deposits, 2023)
  • For those who log in on at least four separate days during their first month, they are 550% more likely to still be active a year later. (The Cure for Lost Deposits, 2023)
  • Consumers who regularly engaged with MX’s personal financial management (PFM) budgeting features on mobile banking experiences had the highest deposit levels and grew those balances during the year, even as deposit balances fell for those who didn’t engage as often. Change in deposit balances (The Cure for Lost Deposits, 2023):

  

  • Engaged users leveraging MX’s PFM features also managed their credit card debt more effectively than others, even during a period of high inflation and increasing consumer debt levels. Change in credit card balances (The Cure for Lost Deposits, 2023):

  

  • Credit card balances for engaged users are 45% lower. (The Cure for Lost Deposits, 2023)

  

  • “With MX Insights, we’re able to send out nudges on things like subscriptions or upcoming bills... Since its launch, 13% of employees that have used this experience have increased their retirement savings. On average, they saved $1,200 more for healthcare savings, and employers save $800 per employee when those employees optimize their benefits decisions.” (Driving Engagement with Personalized Insights)