Americans are so worried about the economy that 40 percent have cut their spending in the past 60 days out of fear that the worst is yet to come, according to Bankrate.com’s September Financial Security Index poll.
According to the poll of 1001 adults conducted by Princeton Survey Research Associates Sept. 1-4, spending reductions were apparent across all income levels, with 43 percent of the nation’s lowest income earners making under $30,000 cutting back the most. But 37 percent of those surveyed making more than $75,000 a year also reported putting the brakes on their spending habits as well.
“Forty percent of Americans say they have cut back on spending in the past 60 days due to the roller-coaster stock market or concerns about the economy. That is how recessions are born,” said Greg McBride, Bankrate's senior financial analyst.
Overall, Bankrate’s Financial Security Index was 93.9 for September, up just a bit from August. But it was still the third-lowest level since the polls started in December of last year. Any index value below 100 indicates declining levels of financial security compared with 12 months ago.
The poll also revealed that 23 percent of younger people under age 30 feel more secure in their jobs compared to only 10 percent of those age 50 and older. In addition, 50 percent of those surveyed between ages 50-64 said they are less comfortable with their savings today than they were a year ago.
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