Two-thirds of Americans Have Decreased Spending

Even though regulators are signaling more positive economic conditions, a Wells Fargo report found that most consumers have made major adjustments due to their financial situation.

The Wells Fargo Money Study revealed that 67% of Americans have cut back on spending and 45% have put some life plans due to financial struggles and uncertainty.

Meanwhile, one in three (31%) of consumers spend more than they can afford each month and 44% reported having more debt than they feel comfortable with.

As a result, 35% have dipped into savings or investments to ease their current financial insecurity.

The report also found that the younger generation is struggling the most due to the economy.

Nearly all teens (91%) want to learn new ways of thinking about and dealing with money and 73% reported they sometimes over-focus on how much money is currently available to them.

Increased financial concerns have also caused teenagers to be more likely to lie about their current spending habits and savings status, compared to older generations.

In particular, 50% of teenagers also said they have lied about how much they spend on things, whereas only 32% of adults reported the same.

In addition, 42% admitted they have lied to others about their savings versus 28% of adults.

Michael Liersch, head of advice and planning for Wells Fargo, said:  “Teens appear compelled to lie more than adults about various aspects of their financial lives. We have to ask ourselves why. It may be from observing their parents’ behavior, peer pressure, or the influence of social media. They may be embarrassed or ashamed of their or their family’s financial situation,”