Financial planning isn’t just for the wealthy or the overly cautious — it’s for everyone.
Whether you’re saving for your dream home, planning for retirement, or simply trying to manage monthly expenses, having a financial plan is the only way to turn these aspirations into reality.
However, official reports show that many people overlook this essential step.
In this post, we’ll guide you through financial planning statistics that show how important it is to take control of your finances. Let’s take a look!
General financial planning statistics
These general statistics offer a snapshot of how people approach their finances. This includes everyone — from those who carefully map out their goals to the many who are flying blind.
1. Bank of America reports that 35% of households with incomes below $50K a year are living paycheck to paycheck (Bank of America)
More surprisingly, 20% of US households with incomes above $150K also appear to be living paycheck to paycheck.
2. 30% of Americans have a long-term financial plan that includes savings and investment goals (MX)Â
Conversely therefore, around 70% of Americans don’t have any long-term financial planning strategies.
3. Almost 70% of American households have less than $1,000 in emergency savings (Savology)
This is a widespread vulnerability — without an adequate emergency fund, many households are just one unexpected expense away from financial distress.
4. Almost half of Canadians (45%) reported that rising prices were greatly affecting their ability to meet day-to-day expenses in 2024 (Statistics Canada)
This is 12 percentage points higher than what it was two years earlier (33%).
5. In China, more than 90% of university-educated citizens aged 22 to 32 say that investing is a key part of their life plan (Bloomberg)
According to Bloomberg, traditional methods of wealth accumulation, such as real estate ownership, are no longer the most relevant aspect of their financial plans.
6. Nearly 40% of adults (20.3 million) in the UK don’t feel confident managing their money (FinCap)
At the same time, 11.5 million have less than £100 in savings, while almost 9 million are in serious debt.
Financial security stats across generations
Financial priorities and challenges vary widely between generations. For example, many Millennials are still coping with student debt, whereas Baby Boomers are already preparing for retirement. Let’s see how different generations manage financial pressure.
7. Baby Boomers (38%) are the generation most likely to pay off the full balance of their credit card each month (MX)
They are also more confident than other generations that they will be able to retire comfortably.
8. Reports reveal that 95% of Millennials are saving less than the recommended amount (National Institute of Retirement Security)
Most of them (66%) have zero retirement savings, and those who do aren’t saving nearly enough.
9. Almost 40% of Gen Zers feel pressure to compete financially with peers (OppLoans)
In addition, 36% of them feel they will never achieve financial security.
Debt and savings statistics
Debt and savings are two sides of the same financial coin — one undermines security, while the other builds it. These statistics illustrate how debt impacts saving habits and vice versa.
10. The median savings account balance for US households is approximately $8,000 (Bankrate)Â
In contrast, the average savings account balance is much higher at about $62,410. This average is skewed by a small number of households with very high savings, which inflates the overall figure.
11. The average person in the US owes $104,215 (Business Insider)Â
The figure includes mortgage loans, home equity lines of credit, auto loans, credit card debt, student loan debt, and other debts like personal loans.
12. The household saving rate in the euro area is currently around 14% (European Commission)
The figure suggests a pretty strong focus on financial prudence compared to global averages.
13. On the other hand, the average EU household debt reached almost $7.5 thousand in 2024 (CEIC)
This stat clearly shows that many families in the EU zone are still facing significant financial pressures.
14. Nearly a third of households in Australia (32.2%) have less than $5,000 in savings, while one in six have less than a thousand (InfoChoice)Â
In addition, 43% of renters have just one monthly income or less in savings. This is over two times more compared to homeowners (19.6%).
15. The average Australian household debt stands at $276,462 (Jacaranda Finance)
There are about 9.2 million households in the country, suggesting household debts total just under $2.6 trillion.
16. A typical UK household consumer debt (e.g. personal loans and credit cards) is £7,820 in 2024 (NimbleFins)
However, many households owe £8,560 in student loans, while those with a mortgage owe another £193,790 on average on their homes.
17. Around six in 10 (61%) UK adults say they save money either every or most months (Money)
The mean average amount of money held in a UK savings account is £17,365.
Financial literacy and the role of financial advisors
Financial literacy is the foundation of good money management, but many people lack the knowledge to make informed decisions. This section uncovers statistics on financial education and how working with financial advisors can help bridge the gap.
18. Over half of the US students aged 15 to 18 failed a financial literacy quiz (OppLoans)
This is quite problematic given that the test was specifically designed for this age group.
19. Only 18% of EU citizens display a high level of financial literacy (European Commission)
64% of EU residents show a medium level of financial literacy, with the remaining 18% having a low level of knowledge in this area.
20. More than 8.5 million adults (or 45%) in Australia are considered financially illiterate (BusinessThink)Â
The gender gap in this field is significant since 63% of Australian men demonstrate basic financial literacy, compared with just 48% of women.
21. The overall financial advisory services market is worth nearly $90 billion in 2024 (ResearchNester)Â
However, the market is projected to nearly double by 2037 to reach $176 billion.
22. The financial advisory sector in Australia experienced a staggering 38% drop from 2019 to 2022 (RainMaker)
In this period, the sector lost nearly 10,000 registered professionals — and this negative trend shows no signs of reversing anytime soon.
Chart source: Rainmaker
23. The employment of personal financial advisors in the US is projected to grow by 17% from 2023 to 2033, much faster than the average for all occupations (US Bureau of Labor Statistics)
These professionals help individuals and families manage their money and plan for their financial future.
Spending habits
A whole range of stats shows us where money is going, from daily essentials to discretionary purchases. These insights reveal trends in consumer behavior and offer a clearer picture of how spending choices impact overall financial health.
24. Consumer spending consistently accounts for about 70% of the US economy (Investopedia)
The average American spends nearly $73 thousand annually, which makes for a total of $13 trillion nationwide.
25. The household disposable income per capita in Canada is projected to reach $39 thousand in 2024 (Statista)
The average Canadian spends most of their money on housing ($7.6 thousand) and transport ($4.5 thousand).
26. Young people in the EU heavily invest in self-improvement, with Spanish Gen Zers allocating an impressive 32.63% of their spending towards acquiring new knowledge and skills (N26)
Italians, French, and German youngsters also spend a fair share of their budgets on personal development — more than 20%.
27. Almost 40% of Australians say that their household spending increased in the last 12 months (BudgetDirect)
At the same time, two-thirds of respondents said their household spending changed because they spend more on essentials such as groceries and bills.
Stats prove the importance of personal finance management
Financial planning stats aren’t just numbers. On the contrary, they explain how we approach our money, where we’re thriving, and where there’s room for improvement. That’s why we encourage you to recognize where you stand in relation to these statistics. If you follow this approach, it will be much easier to improve your habits and ensure long-term financial security.
