The LEMON Graph Examines Knowledge of Monetary Spending
Sarah Nazim — July 29, 2012 — Business
References: lemon
This LEMON infographic examines Americans' knowledge of financial spending. There were 1,000 recipients interviewed from across the country and seven measures of financial literacy were tested.
According to this research, 43 percent of respondents currently adhere to a budget, while 56 percent do not. It also appears that 64 percent of respondents are paying their bills on time (this number has dropped since 2008) and 33 percent are not paying their bills on time.
In terms of savings, excluding retirement funds, 59 percent of respondents said they have some, while 39 percent do not. When respondents were asked how they would rate themselves on a scale from A-F in terms of their financial knowledge, a majority rated themselves as B and C came in second.
Overall, people are conscious of the importance of financial planning. Having a sound plan and taking the steps necessary to implement them is crucial in today's economy.
According to this research, 43 percent of respondents currently adhere to a budget, while 56 percent do not. It also appears that 64 percent of respondents are paying their bills on time (this number has dropped since 2008) and 33 percent are not paying their bills on time.
In terms of savings, excluding retirement funds, 59 percent of respondents said they have some, while 39 percent do not. When respondents were asked how they would rate themselves on a scale from A-F in terms of their financial knowledge, a majority rated themselves as B and C came in second.
Overall, people are conscious of the importance of financial planning. Having a sound plan and taking the steps necessary to implement them is crucial in today's economy.
Trend Themes
1. Financial Planning Awareness - The increasing awareness on the importance of financial planning is an opportunity for disruptive innovation in developing practical financial planning tools and solutions.
2. Debt Management - The high rate of respondents failing to pay bills on time creates opportunities for innovative debt management solutions for individuals and businesses.
3. Budgeting Assistance - The percentage of respondents not adhering to a budget highlights an opportunity for developing user-friendly budgeting tools and services.
Industry Implications
1. Fintech - Fintech companies can develop user-friendly financial planning tools, debt management solutions, and budgeting assistance services.
2. Personal Finance Education - The need for financial literacy education creates opportunities for developing courses, coaching, and certification programs on financial planning and management.
3. Banking - Banks can leverage financial literacy to offer targeted services and products that cater to individual and business needs, such as educational resources, credit counseling, and debt restructuring.
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