Friday, September 3, 2010, AM | 1 Comment
I have often said that debt is a four-letter word that is not necessarily bad when mentioning it. There is bad debt and there is good debt. We must avoid stinking bad debt but good debt is usually the livelihood in our personal financial life. TD AMERITRADE Holding Corporation did a survey about how folks perceive debt.
It turns out at different stages of life, the debt definition changes in terms of financial success. The survey found two major perceptions of financial success. One being debt-free and the other being able to save for retirement and perhaps education.
More than half of the folks over age 65 define financial success as being debt-free, compared to 30% of people ages 18-34. The survey further found that, on average, 39% of Americans define financial success as being debt-free while 29% define it as being able to save for future goals, such as education and retirement.
Analysts at TD AMERITRADE suggest that the last few years have shaped people’s thinking toward money in a new way. And that is that the amount of credit relied upon during down economies grows in dollar amount as well as in Americans’ consciousness. They further suggest that “while it is promising that folks understand the importance of eliminating debt, there is a big need to focus on saving for retirement and then, perhaps education.”
Other interesting findings by the survey:
- 46% of married couples without children are actually more apt to define financial success as being debt-free while 37% of married couples with children think the same.
- 23% of singles without children define financial success as saving money every month for future goals, compared to 37% of singles with children.
- More men with children than women define financial success as being able to indulge and pay for it.
In a Nutshell
The idea is to find a way to control debt while saving for now and retirement.