Jan 19, 2017
Pattie Lovett-Reid: How Donald Trump could impact personal finance
We are on the cusp of the inauguration of the 45th president of the United States — Donald Trump — and there has been much discussion about how Americans' lives will be affected by national changes ahead.
I reached out to Experian, a U.S.-based data service provider, who recently asked Americans what they thought the next four years would bring in terms of their personal finances. The level of optimism in the response was high with many Americans confident their personal finances will improve, while some still will want to make some drastic changes to better their situation.
Fifty-one per cent of respondents believe their own financial situation will improve and 37 per cent feel everyone's general financial status will get better over the next four years. Not surprisingly, the response differed based on political party. Republicans having higher rates of optimism with 70 per cent feeling they will be better off and 77 per cent believing Americans' financial status will improve.
Democrats were less enthusiastic with only 36 per cent feeling they will be better off and 19 per cent for all Americans. Fifty-one percent of independents believe their personal finances will improve and 44 per cent believe improvement is coming for everyone.
Across all party lines, 35 per cent agreed this is the year to make drastic changes. Tied in top spot at 43 per cent was looking for a better paying job and increasing overall savings. Thirty-nine percent wanted to decrease spending. I found it interesting to note the similarities between Canada and the U.S. as it pertains to financial concerns with one exception - financial setbacks due to future medical cost was the survey's second biggest concern. This concern rarely, if ever, appears on Canadian list of financial challenges due to our universal health care. Topping the list is however one we see often - not having enough to retire is a big concern. Rounding out the top five -- not becoming financially independent, not being able to support their family and finally not being able to pay off debt.
Bottom line: While it is great to be optimistic about your personal financial situation, Rod Griffin, director of Public Education at Experian, says you should always be prepared for changes. And one thing we know for sure is change is on the way.
