lisa miller

The Evolution of the American Dream and Why it Matters for Personal FinancesTom O’Donnell, Chase

What is the American Dream?

Is it:

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Is it:

A. To work less and make more money?

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Is it:

A. To work less and make more money?

B. To own a house with a white picket fence and have a family with 2.3 children?

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Is it:

A. To work less and make more money?

B. To own a house with a white picket fence and have a family with 2.3 children?

C. To retire with your toes in the sand and the sun overhead?

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Is it:

A. To work less and make more money?

B. To own a house with a white picket fence and have a family with 2.3 children?

C. To retire with your toes in the sand and the sun overhead?

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Answer: Probably all of the above.

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“The American Dream is that dream of a land in which

life should be better and richer and fuller for everyone,

with opportunity for each according to ability or

achievement…a dream of social order in which each

man and each woman shall be…recognized by others

for what they are, regardless of the fortuitous

circumstances of birth or position.”

-James Truslow Adams, The Epic of America 1931

What is the American Dream in 2013?

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Respondents defined achieving the American Dream as:

77%50% 46% 45%

Children RetirementCollege

EducationMarried

Home Purchase

46%

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Here’s what didn’t rank on respondents’ wish lists: 20% 17%

Two Cars New Business

Who can achieve the American Dream?

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Just 20% think that attaining the American Dream is only possible if you’re born wealthy.

Why is it worth talking about the American Dream

in 2013 at FinCon?

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Because the outlook on the American Dream is changing…

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When respondents were asked to compare their economic standing to their parents’ …

They reported feeling more prosperous — but also more financially stressed.

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Homeownership was the number-one symbol of the Dream today, representing freedom, individuality and success …

But consumers are more cautious.

77%

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More than half feel it’s too expensive to raise children in this day and age.

How costly?

Three out of 5 believe that you need dual

incomes to make ends meet.

Two out of 5 have delayed having children because

of their financial situations.

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One respondent feels it’s too expensive to raise his two children and looks forward to the day when they are finally off the family payroll.

I mean, not that said respondent doesn’t unconditionally love his children and all that.

Child 1 Child 2

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While retiring at 65 remains a core component of the American Dream, reaching that goal is a roadblock for respondents.

More than a third feel that it’s not possible today to save enough for retirement.

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And while the Dream is still alive … There are those stressors.

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Perhaps because of thecomplexity of finances.

“Complexity” refers to the ability to comfortably and confidently make financial decisions.

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31% said their financial life is very complex.

Of those who say their financial health has improved since the recession, 43% say the complexity of their finances has decreased.

How can Americans make sure that their Dream is still alive and well?

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Four ways to help consumers achieve the American Dream:

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Build and maintain literacy.

Source: Chase Blueprint/Aite research

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Build and maintain literacy.

Seven of 10 consumers whose financial life improved used at least one source of financial help.

Start with the products you already have because…

Source: Chase Blueprint/Aite research

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Understand and manage complexity.

Sources: Chase Blueprint/Aite research, Chase Blueprint research

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Understand and manage complexity.

The goal is feeling comfortable and confident making your financial decisions.

Consumers want:– Control– Simplicity– Predictability

Sources: Chase Blueprint/Aite research, Chase Blueprint research

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Manage budgeting, spending and borrowing.

Sources: Chase Pulse of the Consumer research; “Born to Spend” research

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Manage budgeting, spending and borrowing.

Consumers saved more during the downturn.

Now they are feeling more confident, so…

can good efforts become habits?

Sources: Chase Pulse of the Consumer research; “Born to Spend” research

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Understand progress and experience success.

Sources: Chase Blueprint analysis and research

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Understand progress and experience success.

People are more likely to commit to the goals that they set for themselves.

Once you taste success…

Sources: Chase Blueprint analysis and research

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Four ways to help consumers achieve the Dream:

Build and maintain literacy. Understand and manage complexity. Manage budgeting, spending and borrowing.

Understand progress and experience success.

THANK YOUChase.com/MindfulSpending

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