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Economy
Americans Feel Slightly Better About Finances Than a Year Ago
Economy

Americans Feel Slightly Better About Finances Than a Year Ago

by Rebecca Riffkin

Story Highlights

  • About half feel "pretty good" about amount of money they have
  • Half say they feel better about personal financial situation
  • Both measures up slightly from Jan. 2014

WASHINGTON, D.C. -- Despite the upbeat economic news in recent months and the rise in Americans' overall economic confidence, slightly less than half of Americans say they are feeling "pretty good" about the amount of money they have to spend. This is, however, by a slight margin, the highest level Gallup has measured over the last two years -- up from 45% in January 2014 and slightly higher than the 47% recorded in January 2013.

Americans Feeling Slightly Better About the Amount of Money They Have to Spend Since January 2014

Gallup asks Americans each night: "Are you feeling pretty good these days about the amount of money you have to spend, or not?" Americans generally are not overly positive in their responses, with answers staying within the narrow range of 41% and 49% saying they are feeling pretty good over the past two years. The 49% in the last two months, December 2014 and January 2015, are the highest percentage Gallup has found for this question since the beginning of 2013.

More Americans Feeling Better About Their Financial Situation Than a Year Ago

Americans' responses to a separate question asking if they are feeling better about their financial situation are also up modestly to 50% saying they are feeling better from 43% who said the same in January 2014. This is highest percentage saying they are feeling better about their financial situation since 2013.

Americans Feeling Slightly Better About Their Financial Situation

These two questions tap into Americans' emotional responses to money and spending, and responses to both have generally increased and decreased in tandem. The lowest percentage over the past two years to answer "yes" for either question Gallup found in October 2013, amidst the partial federal government shutdown, when 41% said they felt good about the amount of money they had and 39% said they were feeling better about their financial situation. Positive responses to both questions are at their highest points this year, but even with this increase in positive attitudes, only about half of Americans are willing to say that they are feeling good about either the amount of money they have or their financial situation.

Americans Across Income Groups Feel Better About Financial Situation

Compared with a year ago, Americans across income groups feel better about their financial situation. Notably, low-income Americans, those earning less than $24,000 in annual household income per year, are now more likely to say they are feeling better about their financial situation, at 38%, which is up from 32% a year ago.

Americans earning $60,000 to $89,999 are equally as likely as those earning $90,000 or more a year to say they are feeling better, at about 60% for both groups. About half of Americans earning $24,000 to $59,999 say they are feeling better, while still less than four in 10 of low-income Americans say the same.

Americans’ Perceptions of Their Spending and Finances, by Income

Lower-income Americans, earning less than $24,000 a year, are no more likely than last year to say they are feeling pretty good about the amount of money they have to spend. A slightly higher percentage of upper-income Americans than last year say they are feeling pretty good about their spending money, although they are the most likely to say this. Americans in the middle-income groups are more likely this year to say they are feeling better about the amount of money they have to spend than said so last year.

Bottom Line

Americans' responses to these personal spending questions generally parallel their level of confidence in the national economy. Gallup's Economic Confidence Index fell in October 2013, plunging to an average of -35 for the month of October 2013, the same month that Americans' views about their personal finances fell to record lows.

Recently, economic confidence has been rising, and January was the first month since Gallup began tracking when it was positive. Americans' perceptions of their personal finances have also edged up, but much more cautiously, and even now only about half of Americans are willing to say that they feel good about the amount of money they have or their spending. These results suggest that it will take a significant amount of time for the rising economic tide to have a profound effect on Americans' feelings about their personal financial situations.

Survey Methods

Results for this Gallup poll are based on telephone interviews conducted Jan. 2-31, 2015, on the Gallup U.S. Daily survey, with a random sample of 3,590 adults, aged 18 and older, living in all 50 U.S. states and the District of Columbia. For results based on the total sample of national adults, the margin of sampling error is ±2 percentage points at the 95% confidence level. All reported margins of sampling error include computed design effects for weighting.

Each sample of national adults includes a minimum quota of 50% cellphone respondents and 50% landline respondents, with additional minimum quotas by time zone within region. Landline and cellular telephone numbers are selected using random-digit-dial methods.

Learn more about how Gallup Daily tracking works.


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