A lot of debt, little savings? You're not alone
Do you have a hefty stack of cash in the bank? How about a retirement account? Do you own anything more valuable than your car?
For too many Floridians, the answers to all these questions is no, according to a report released Tuesday by the state Department of Financial Services.
"When it comes to investing," the report says, "Floridians in the main are conservative and cautious -- if they're investing and saving money at all."
A poll commissioned by the department paints a grim picture of Floridians' financial behavior. Among the findings:
10 PERCENT of Floridians have six or more credit cards. 17 PERCENT have suffered a financial crisis because of unemployment. 26 PERCENT live paycheck to paycheck. 34 PERCENT have less than $10,000 in savings. 35 PERCENT have more than $5,000 in credit card debt. 36 PERCENT keep their savings in cash only. 49 PERCENT save something each month toward retirement. 56 PERCENT say they don't put money aside for emergencies.
When it comes to finances, Floridians need some remedial education, state Chief Financial Officer Tom Gallagher said Tuesday. With help from the financial industry, his office plans to step into the breach with an education initiative labeled "Your Money, Your Life."
"The top money concern of Floridians is having enough money to retire, yet most of them focus on it too late," he said.
A telephone survey conducted in June by Mason-Dixon Polling & Research found a fourth of the state's adults say they live paycheck to paycheck, a third have less than $10,000 in savings and half are not saving regularly for retirement.
"It's pretty clear that low-income Floridians are at particular risk," he said. Nearly half of those with incomes below $50,000 say they have more debt than savings and investments.
Young people are less likely to save and more likely to be in debt. It's the 35- to 49-year-olds who are most diligent about saving regularly for retirement or to send a child to college.
A new Web site (www.yourmoneyyourlife.org) is the centerpiece of the educational campaign. It offers information and tips on a wide range of subjects from credit and insurance to home ownership and savings plans. There also are calculators for figuring mortgage payments, debt repayment and meeting savings goals.
Web site visitors can choose English or Spanish versions, both of which include a video clip of Gallagher. His office says a staff member gave Gallagher an assist with his Spanish pronunciation.
Other initiatives will include seminars around the state, newspaper columns and a half-hour television program, which will be made available to television stations around the state and to schools as a DVD.
The campaign is being paid for with private funding from the Allstate Foundation with support from the Department of Financial Services, Florida Council on Economic Education, Florida Insurance Council, Florida Bankers Association and Florida Credit Union League.
