When asked about how confident they are about their own economic situation, two thirds of people are only “somewhat” confident—they can manage their bills comfortably enough. (Photo: Shutterstock)
For many Americans, the American dream is receding into the distance as worries about the possibility of recession in the next year loom.
According to new data from CUNA Mutual Group, while just six months ago survey respondents graded themselves at B minus when asked to evaluate their prospects for achieving the American dream, that's now fallen to a C.
The news comes along with a rise in anxiety that the U.S. is approaching a recession in the next year, with nearly 50 percent of respondents expressing concern that the period of growth may be approaching its end.
But for those with kids, the fear of recession is even stronger, at 54 percent compared with 47 percent.
Individually they seem somewhat confident that their own position is stable, with 61 percent saying they are somewhat to very confident, and 88 percent saying they feel their job is somewhat or very secure over the next year.
And when asked about how confident they are about their own economic situation, two thirds are only “somewhat” confident—they can manage their bills comfortably enough, but in the long run know they need to save more.
But for women the picture is not so rosy, with only 54 percent saying they're confident about their personal economic situation, compared with 68 percent of men.
And only 43 percent of women surveyed felt their employment is secure compared with 51 percent of men. In fact, 18 percent say they don't feel very confident about their economic situation, compared with 11 percent of men.
And they're more worried about the potential for a recession, with 51 percent saying they are somewhat or very concerned, compared to 48 percent of men.
If a recession hit, 50 percent of those without children say they'd make lifestyle changes, while 57 percent of those with kids would do that; 24 percent of those without kids would decrease their credit card payments, compared with 29 percent of those with kids; and only 8 percent of those without offspring would cut their retirement contributions, while 14 percent of parents would.
“The middle class is mired in uncertainty,” Steve Rick, chief economist, CUNA Mutual Group, is quoted saying.
Rick adds, “We're seeing stagnating job growth, limited wage growth and increasing market volatility attributable to headwinds from tariffs and unfinished trade negotiations. This should be a wakeup call to families to start shoring up their finances now, whether that takes the form of cutting spending, reassessing their savings to avoid having to cut into their retirement to stay afloat, or even refinancing a mortgage if that'll put them in a better position.”
He concludes, “If there's one thing 2008 taught us, it's that you can't afford to be caught on your heels if a recession hits.”
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Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
