Fewer money worries - American's perception of their finances

American Demographics, Oct, 1997 by Nancy Ten Kate

Americans are much less anxious about their finances than they were last year, even though they are not noticeably better off.

The share of adults who are very concerned about four specific financial issues dropped 20 percentage points between May 1996 and May 1997, according to The Pew Research Center For The People & The Press. Americans are significantly less worried than they were a year ago about having enough money to retire, affording health care, losing their jobs or taking a pay cut, and their children's future job opportunities. Not surprisingly, those least concerned about financial issues include those with greater financial resources and security: whites, men, those aged 65 and older, college graduates, Midwesterners, and people with annual family incomes of $75,000 or more.

Thirty percent of Americans are very concerned about losing their job or taking a pay cut, but this is down from 47 percent in 1996. The largest percentage-point drop (27 points) was among 50-to-64-year-olds, half of whom were worried about their jobs in 1996. People with family incomes below $20,000 remain the most concerned, with only a 9-percentage-point drop from 57 to 48 percent.

Forty-two percent of adults are very concerned about affording retirement, down from 59 percent in 1996. Blacks exhibit the greatest anxiety (62 percent are very concerned), as well as high school dropouts (58 percent) and those with family incomes below $20,000 (59 percent).

Half of Americans are very concerned they will be unable to afford health care if a family member becomes ill, down from 68 percent in 1996. This concern varies little by age, sex, region, or education, but again, blacks, low-income Americans, and high school dropouts remain more concerned than the average adult.