TUSTIN, Calif.–A new credit union-sponsored survey has found that when it comes to managing money, California residents appear more confident about their current situations than they do about their futures.
The study, titled “The Financial Lives of Californians” and conducted by Gallup on behalf of SchoolsFirst FCU, found respondents are somewhat more likely to say they pay their bills on time (59%), with 34% saying they have a manageable amount of debt, 34% saying they could cover household expenses for three months in an emergency, and 21% saying they are saving enough to meet their long-term goals.
The Findings
According to SchoolsFirst:
- One-third of California residents said they plan ahead financially
- 35% said they are “struggling”
- 37% said they are “suffering”
- 28% said are “thriving”
- SchoolsFirst FCU said it found that its own members are more likely to be “thriving” (41%) and less likely to be “suffering” (22%) than Californians overall
Differences Driven by Demographics
SchoolsFirst reported that the survey further found demographics also made a difference in Californians’ feelings about their financial well-being, with older residents, those known as Traditionalists, more apt to be “thriving” and less likely to be “suffering” than the Baby Boomer, Gen X, Millennial and Gen Z generations that followed.
Not surprisingly, the credit union noted, consumers in higher-income brackets were more likely to be “thriving” and less likely to be classified as “struggling” than those consumers with lower incomes.
“SchoolsFirst FCU is dedicated to delivering World-Class Personal Service to our Members by providing trusted financial advice and products and services that meet their individual needs,” said CEO Bill Cheney in a statement. “It is encouraging to see our members are more likely to feel they are thriving and we will continue to find ways to support their financial well-being.”
Additional Findings
Additional findings include, according to SchoolsFirst:
- 94% of Californians have a preferred financial institution, while the remaining 6% fall into the category of the “unbanked” – meaning that they have no formal banking relationship and prefer to manage their finances on a cash basis or through other methods such as gift cards or wire transfers.
- Among California consumers who maintain a banking relationship, most prefer to interact with their financial institutions online, using a computer, phone or tablet, for routine banking activities, and through in-person contact for specialized banking activities. Other less-preferred channels included ATMs and telephone contact.
- California consumers who experienced any type of problems with their financial institutions were most apt to mention online banking and fraud as the areas of concern, the credit union reported, adding that problem resolution was high among California financial institutions, with 71% of consumers overall indicating that their problems were solved.
Survey Methodology
According to SchoolsFirst, which has more than 1.3 million members, “The Financial Lives of Californians” report is based on two surveys - one of California residents and another of SchoolsFirst FCU Members. The California resident survey analysis is based on 1,548 web interviews using an online panel of California residents. The SchoolsFirst FCU Member survey analysis is based on 563 web interviews among a cross-section of SchoolsFirst FCU Members. SchoolsFirst FCU said it drew a sample of 10,000 records with a 5% response rate.
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