The 2024 Money Matters Report™ by Acorns highlights the growing fear among young adults about becoming homeless, with approximately a third of Gen Z and Millennials expressing concern about their financial situation leading to homelessness. The top three financial concerns among adults are the cost of living, inflation, and debt, with over a quarter of Americans surveyed admitting to never having had an emergency fund. Acorns CEO Noah Kerner explains that these fears are understandable, especially considering the current economic climate. The Department of Housing and Urban Development reported a 12.1% increase in homelessness from 2022 to 2023, further highlighting the severity of the issue.
In addition to personal financial stressors, Americans also have concerns about macro issues such as global war and conflict, the rise of AI, and climate change impacting their financial security. More than half of those surveyed expressed concern about these global issues affecting their financial well-being. Kerner believes that the heightened anxiety among Americans is a natural response to the uncertainties brought on by these multiple challenges. This uncertainty is further amplified by the lack of financial education, with two-thirds of Americans reporting that they would be better off today if they had received more financial education earlier in life.
The report also emphasizes the importance of early financial literacy education on future financial security, with Acorns customers and individuals using financial planning tools displaying more optimism about their expected future financial security. However, almost a quarter of American adults did not receive any financial literacy education as children, and the majority of those individuals believe their financial security would be better today if they had received more financial education. Gen Z and Millennials, in particular, feel that they would benefit from more financial literacy education, despite reporting that they received more education in this area compared to older generations.
Kerner stresses the critical importance of financial education, as knowledge gives individuals the power to manage their personal finances effectively. With financial literacy not being taught in schools, many individuals lack the necessary foundation to navigate their finances. Acorns aims to bridge this gap by providing education and advice at the moment of decision-making, allowing users to engage in active learning. The report also indicates that these financial anxieties are not going away, with only 35% of respondents expecting to be more financially secure next year, while the majority anticipate their financial security to remain the same.
Overall, the 2024 Money Matters Report™ highlights the significant financial concerns facing Americans, with a particular focus on the fear of homelessness among young adults. The report underscores the importance of early financial literacy education in improving future financial security and the impact of macro issues such as global conflicts, AI, and climate change on individual financial well-being. While these uncertainties persist, efforts to educate individuals on financial management and empower them to make informed decisions will be crucial in navigating the complex financial landscape.