Financial satisfaction of people in the U.S. rebounded strongly in the third quarter of the year, according to a new survey by the American Institute of CPAs, reversing the lows in the second quarter in the midst of the recession brought on by the novel coronavirus pandemic.
The AICPA’s Q3 2020 Personal Financial Satisfaction Index measured 33.1, representing a whopping 99 percent (16.5 point) increase from the previous quarter. That’s the biggest quarterly increase in the 27-year history of the PFSi, and a complete turnaround from the second quarter, when the index had its largest ever quarterly drop.
Dave Sikora is a technology industry veteran with more than 20 years of experience that spans enterprise software, data intelligence, private equity, mobile applications and supply chain solutions. As chief executive officer at ALTR, he is focused on expanding the ways enterprise companies can leverage blockchain technology to reduce threats to data integrity. He holds an MBA from Harvard Business School and serves as a strategic advisor to startups in the Austin tech market.
Martin Fiore is EY Americas vice chair of tax.
Brendan Miller is a principal analyst at Forrester Researching, serving digital business professionals. His research focuses on retail digital transformation, consumer insights, payments, and eCommerce trends in the age of the customer. Brendan has specific expertise in helping retail leaders understand the opportunity derived from payments as well as the vendors that facilitate the delivery of leading digital experiences. His interests include emerging digital payments, rebuilding checkout experiences for our mobile world, retailer security and risk challenges, and insights into the state of the digital shopper.
Brendan’s research and analysis have been widely cited in publications including The New York Times, USA Today, Bloomberg, Fortune, Barron’s, CNBC, as well as NPR, The Los Angeles Times, and Financial Times.
Previous Work Experience
Prior to Forrester, Brendan spent 20 years as a B2C and B2B marketer, spanning technology, services, retail, CPG, and durable goods. Most recently, he led product marketing duties at payment firms, such as First Data, Mercury, and Vantiv. Prior to working in payments, he held B2C marketing leadership roles at Pulte Group and Graham Advertising (a leading automotive advertising agency), and he was also a managing director of a market research and strategy firm.
Education
Brendan holds a BBA in marketing/management from Northwood University in Midland, Michigan, as well as an MBA from the University of Denver, Daniels College of Business.
The PFSi is built around various factors, including the labor market. The gains can be mainly attributed to improvements in job openings per capita and underemployment. Those had the biggest impact on increasing the overall PFSi. The biggest factor driving the quarter-over-quarter rally was a 35 percent (37 point) decrease in underemployment. A decrease in underemployment improves overall financial satisfaction in the index. While there was an improvement in underemployment in the third quarter from Q2’s record high, it’s still 117 percent above its level a year ago. For the second consecutive quarter, underemployment is still the biggest negative contributor to the average American’s personal financial satisfaction. The Q3 underemployment level reflects data measured through the middle of September.
“As Americans continue to navigate the economic impact of the COVID-19 pandemic, it is important to remember that the fundamentals of financial planning haven’t changed,” said AICPA PFS Credential Committee chair Dave Stolz in a statement Thursday. “Though the stock market’s record performance is encouraging, 2020 has served as a reminder of the volatile nature of markets. As the impact of COVID-19 continues to play out across the country, investors should weigh their risk tolerance and ensure they have ample cash on hand. Further, a tax-efficient financial plan that includes a diversified portfolio can give confidence that long-term financial goals will remain within reach through this period of extreme uncertainty.”
The coronavirus put millions out of work, prompting job openings per capita to show a record plummet earlier this year. In the third quarter, job openings started to recover, climbing 37 percent (20 points) compared to Q2. That factor is now only 10 percent below its measurement a year ago before the pandemic. The Q3 index comes from July data from the U.S. Bureau of Labor Statistics.
