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Financial Planning Profiles of American Households: The 2013 Household Financial Planning Survey and Index
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The 2012 Household Financial Planning Survey found that even in an uncertain economic climate, financial planning leads to better outcomes for those who take the time and make the effort to plan. Planners showed themselves to be more confident about their financial decision-making ability, able to save more money, and more pleased with their progress in meeting savings goals. A Household Financial Planning Index (HPI)1 has been developed that scores households based on a full range of behaviours and activities. HPI scores are then used to segment households into four groups, variable in size, each representing a different level of financial planning. A second index was developed to measure financial preparedness. Separate from planning, the items that make up the Financial Preparedness Index (FPI)2 cover perceptions of progress toward meeting one’s financial goals, the status of savings and investments, and the adequacy of insurance coverage.