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.
Richard A. Royer has served as the chief executive officer of Primaris, a vendor of healthcare quality business solutions, since 2001. He has extensive administrative healthcare experience and is actively involved in several statewide healthcare initiatives.
Peyton Burch, CPA, CITP, is a senior channel executive with Intacct. He is a nationally recognized expert in managing high-performing value added reseller (VAR) organizations and building high impact relationships with both software publishers and customers. He joined Intacct in October of 2010 and is engaged in Channel Partner sales and enablement efforts. Mr. Burch is a sought-after speaker at AICPA and accounting industry conferences. His firm was awarded Accounting Technology’s Pacesetter designation for seven consecutive years. Mr. Burch is actively involved in the AICPA and the Information Technology Alliance (ITA). Mr. Burch began his career in 1986 as a Senior Consultant with Arthur Andersen & Co.’s Management Information Consulting Division and went on to lead several prestigious VAR businesses. As President of Houston-based Burch Consultants, he built the firm into a nationally recognized industry leader. As part of the Intacct team, Mr. Burch leverages his strong ties to the CPA and reseller communities to help evolve the Intacct VAR program. Previously, he served as Director of Partner Programs at Deltek.Mr. Burch obtained a bachelors degree in Business Administration from Southern Methodist University and a Masters in Professional Accounting) from the University of Texas at Austin. He became a Certified Public Accountant in 1989. Mr. Burch has served on the AICPA Technology Conference Committee for the past six years and as Chairman of the 2008 - 2011 Conferences. He currently leads the ITA Membership Committee and serves on the AICPA CITP Credential Committee. In 2010, he was recognized by Accounting Today as one of the Top 100 Most Influential People in Accounting.
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.
