Still feeling the effects of the Great Recession, many American families today struggle just to make ends meet. The CFP Board/Consumer Federation of America Household Financial Planning survey finds people today facing tougher choices about how to allocate more limited financial resources. Saving enough money for future goals like retirement and kids’ college – while also maintaining an adequate emergency fund and staying out of serious debt – has always been a challenge. This was true even in the more favorable economic climate of 1997, when Princeton Survey Research Associates International first surveyed household decision‐makers about these topics. In 2012, with high unemployment, stagnant incomes and reduced net worth, those challenges are even greater.

While the economic climate has changed, financial planning remains a critical factor in separating those who are on track to meet their financial goals from those who are falling behind. The new survey finds people who plan feel more confident about their financial decision‐making,manage to save more money, and feel better about their progress to date in saving for financial goals. Planners score higher in financial preparedness than non‐planners across income groups. The benefits are not limited to those who are better off.