As the 2024 presidential election approaches, many Americans are concerned about the potential impact on their personal finances, according to a recent report by the CFP Board.
The study, titled "Americans’ Financial Outlook and the 2024 Election," reveals a significant majority of Americans expect their financial situation to worsen if their preferred candidate loses.
According to the survey, nearly 80 percent of respondents expressed fears of financial decline should their candidate fall short in the election. Despite this concern, there is a mixed outlook among the public. While 45 percent report feeling anxious, 58 percent remain optimistic about the economy’s prospects, and 51 percent are hopeful for improvements in their personal financial situation.
The report highlights that economic factors are playing a significant role in shaping voting decisions. Cost of living and inflation were the most pressing issues, with 92 percent of respondents indicating these as important considerations. More than four-fifths of participants also highlighted other financial factors, including personal income growth (85 percent), tax policies (82 percent), housing costs (82 percent), and interest rates (81 percent).
The study also showed how political affiliations affect the specific financial concerns Americans hold. Forty-seven percent of Republicans are concerned about potential tax increases, compared to 34 percent of Democrats and 33 percent of independents. Similarly, 43 percent of Republicans worry about paying bills, compared to 33 percent of Democrats and 30 percent of independents.
Meanwhile, healthcare costs are a greater concern for Democrats, with 36 percent fearing higher expenses, compared to 27 percent of Republicans and 28 percent of independents.
As uncertainty around the election builds, many Americans are taking precautionary steps. The research found that 37 percent of people are increasing their savings, 34 percent are cutting back on spending, and 24 percent are looking for additional income sources.
Another two-thirds (63 percent) are taking a wait-and-see approach, putting off their financial decisions until after the election. That includes 26 percent deferring vacations, 21 percent postponing car purchases, and 20 percent choosing to delay their homebuying.
“The upcoming election is causing many Americans to reassess their financial strategies, with a significant number choosing to delay major decisions until the results are known,” Kevin Roth, managing director of research at CFP Board, said in a statement.
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