Money Matters: Finances and Fear

 

With Halloween just days away and consumers expected to spend roughly $10.6 billion on the occasion, the personal-finance website WalletHub today announced the results of its nationally representative Halloween Spending & Financial Fears Survey, along with its picks for 2022’s Worst Credit Cards to highlight scary offers that people should avoid this holiday season.

Please find key takeaways below, followed by commentary from WalletHub experts.

• Financial Nightmares: 42% of Americans have had nightmares about money this year.
   
• Economic Fear: 86% of people are somewhat fearful or very fearful of this economy.
   
• Halloween Spending: 80% of people are planning to spend less on Halloween this year compared to last year.
   
• Horrific Personal Finances: More than one-third of Americans think their finances are a horror show.
   
• Biggest Financial Fear: A third of Americans say an unplanned emergency is their biggest financial fear.

Q&A with WalletHub

Why are Americans having nightmares about money?

“A new WalletHub survey found that 42% of Americans have had nightmares about money this year, and inflation seems to be the main reason. Even Halloween’s spooky staples, like ghosts and goblins, can’t compare when it comes to interrupting a good night’s sleep, as 41% of people say inflation is the scariest thing about Halloween this year,” said Jill Gonzalez, WalletHub analyst.

Are Americans fearful of the economy?

“According to a new WalletHub survey, 86% of Americans are somewhat fearful or very fearful of the economy right now. With persistent inflation and widespread concern about a protracted recession that could push unemployment up from near record lows, there is indeed plenty for people to worry about,” said Jill Gonzalez, WalletHub analyst.

Why do so many Americans think their finances are a “horror show”?

“More than one-third of Americans think their finances are a horror show, according to a new WalletHub survey, because they are realistic. Most people don’t have much in savings, debt levels are rising, prices are inflated, the stock market has been turbulent, and the short-term economic outlook is gloomy. That’s a recipe for horror right there," said Jill Gonzalez, WalletHub analyst.

What are Americans’ biggest financial fears?

“One-third of Americans say an unplanned emergency is their biggest financial fear, which makes sense considering that millions of people live paycheck to paycheck and have little in savings,” said Jill Gonzalez, WalletHub analyst. “Other leading financial fears include not having enough retirement savings, job loss and fraud. ”

How can consumers avoid the worst credit cards and get the best credit cards? 

“Consumers can steer clear of the worst credit card offers and navigate directly to the best options by comparing numerous offers before applying. The first credit card offer you come across might not be very good, but you’re unlikely to know that until you check to see what else is out there. Consumers should also have a plan for how they’re going to use their new card. Having a plan helps you zero in on the features that will impact you the most. For example, if you have expensive debt you want to get rid of, you should focus on cards’ balance transfer terms instead of things like rewards,” said Jill Gonzalez, WalletHub analyst. “Finding the best credit card for your needs doesn’t have to be hard. People who don’t want to do the legwork themselves can simply reference editors’ best selections from a trusted source such as WalletHub to see which of the top offers will suit them the most. WalletHub’s editors compare more than 1,500 offers to find the best credit cards in the most popular usage categories.”