Would you flunk this financial planning test?

Fewer than one in five American households are methodical about planning their finances, and one in 10 do no financial planning at all, imperiling their ability to save effectively for retirement and emergencies, according to a report released Wednesday by two nonprofit groups. The report, which was sponsored by the Certified Financial Planner Board of Standards Inc. and the Consumer Federation of America, revealed that more than two-thirds of the households said to have the most extensive planning use guidance from advisers with fiduciary accountability, such as a registered investment adviser or certified financial planner. Only 19% of the people surveyed worked with that kind of adviser. Less than a third of Americans have any professional or computer help at all in developing a financial plan. The report states that comprehensive planning ideally involves developing a household budget and planning to reduce debt, as well as attending to retirement and insurance needs. While a majority of Americans have a budget and plan for retirement, less than a third write the budget down or plan for emergencies or goals. More than half of Americans carry a balance on their credit cards from month to month. More extensive planning is linked with a higher likelihood of reducing credit card debt, increasing savings and personal confidence, according to CFP Board chief executive Kevin R. Keller. Princeton Survey Research Associates International conducted the study by interviewing 1,002 financial decision makers in April.