A survey of people who are in charge of the finances in their household, Household CFOs by the Consumer Credit Counseling Service has found that 68%, or two out of three, are ill prepared to a sudden financial crisis because they dont have emergency savings accounts.
Further, a majority arent properly planning for retirement, with one in six reporting that they dont have any long-term plans in place, such as a budget, retirement plan or any kind of savings.
As a result, the not-for-profit CCCS is launching a national awareness campaign it is calling Household CFO and enhancing its online education program.
The time and energy it takes to manage the day-to-day leaves little time for thinking about what lies ahead, said CCCS Director of Education Mechel Glass. People often become overwhelmed and forget to include savings and long-term planning in their budget. We launched the Household CFO campaign to share what weve learned in our 44-year history, encourage proactive financial education and help individuals better prepare for financial stability.
A member of CCCS national advisory council, Ilyce Glink, said: A long-range financial plan is particularly critical during times of economic uncertainty like the present. A general guideline is to save 10% of net income and have six months income available in an emergency fund or savings account. But if saving 10% of your net income seems impossible in a time where gas prices are rising, try to set aside 5% each month until youve reached that 10% threshold.