Household ‘CFOs’ Ill-Prepared for Financial Crises, Retirement

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 don’t have emergency savings accounts.

Further, a majority aren’t properly planning for retirement, with one in six reporting that they don’t 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 we’ve 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 you’ve reached that 10% threshold.”