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.
After studying radio, TV, and film at Syracuse University, Yasemin found herself working in a televised investigative reporting program. Later, she went on to work at Hurriyet Daily News (formerly Turkish Daily News.) There, she mostly wrote features, with subject matters ranging from the faulted renovations of historic buildings in Istanbul to a story questioning how American mega coffee chains affect the all-important Turkish coffee culture. She also acted as the editor of the newspaper's real estate pages and filled in as the editor of diplomacy and foreign news pages. She is currently enrolled in New York University’s Business and Economic Reporting Program.
LouAnn Bala, MSN, RN, is VP and chief nursing officer for clinical solutions for GetWellNetwork, a precision engagement healthcare company.
Robert Lajdziak is the Insurance Business Consultant for the Insurance Practice at J.D. Power. He is responsible for the company’s syndicated research studies on both personal Home and Auto insurance in North America as well as Life insurance. He is also responsible for developing research-based solutions that drive measurable results for clients within the insurance industry in North America. His primary focus is on improving product quality, while building client relationships and delivering actionable insights.
Lajdziak joined J.D. Power in 2012 and has served in several positions in the Services Industries-Americas Practices, in both Financial Services and Insurance, including Senior Wealth Management Analyst, Research Supervisor, Research Specialist and Research Associate prior to joining the Insurance Practice team.
During his tenure at J.D. Power, Lajdziak has contributed to several thought leadership pieces—which were covered by trade publications and at industry seminars—regarding such topics as shopping with online chat; self-service and the future role of agents; transparency of commissions and fees; goals-based investing; and women in the wealth management sector.
Mr. Lajdziak earned a bachelor’s degree in marketing-management from Hillsdale College in Hillsdale, Michigan.
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.
