experian consumer newlywed survey
TRANSCRIPT
1
EDELMAN BERLAND
Experian Credit ScoreNewlywed Survey
Report
February 2016
2 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
WHO HOW MANY ACCURACY WHEN HOW
Newlywed Adults
Nationwide (Have been
married within the past year)
n=1,002Margin of
Error:+/- 3.1%
Data Collection Occurred
January 21 - February 1,
2016
Online Survey
Methodology
Results are compared with those of an online survey of n=1,010 married adults ages 30-49 nationwide conducted April 16-19, 2014.
Demographics
3 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Key Findings
• Finance and credit play a bigger role in the modern-day marriage• Today’s newlyweds are more likely to have discussed long-term financial goals
and credit scores with their spouse before getting married• A potential partner's credit score was more important to today’s newlyweds
when selecting their spouse than it has been to other married couples
• Still, newlyweds may be in for a few financial surprises• Although most newlyweds discuss finances before getting married, one in three
are still surprised by their spouse’s financial situation and spending habits• On average, newlyweds would spend more than $800 without telling their
spouse, and15% report having a financial account that their spouse does not know about
• Credit becomes critical within the first year of marriage• Newlyweds’ say credit already plays an important role in their marriage –
mostly in getting good interest rates and securing a loan to buy a house, which is newlywed’s top financial goal
• Credit scores are already a source of stress in 39% of newlywed marriages
THE MODERN MARRIAGE
5 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Personality Compatibil-ity
Financial Responsibility Career Ambition Physical Attractiveness
98% 95%
77%86%
95% 92% 86% 82%
Attribute Importance(Shown: % Important)Married Newlywed
Similar to married couples overall, newlyweds value financial responsibility over physical attractiveness in a spouse
Q7: How important are each of the following attributes in a spouse?
6 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
79% 73% 69%60% 55%
43%
76%69% 68% 69%
55% 60%
Learned about Spouse Before Marriage(Shown: % Learned about Spouse)
Married Newlyweds
Today’s newlyweds are more likely than married couples overall to discuss long-term financial goals and credit scores before their wedding
Q10: Please indicate when, if ever, you learned each of these things about your spouse. His/her…
7 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Important Agree
49%
33%
60% 56%
Married Newlyweds
Credit scores are more important and top-of-mind for newlyweds today when they are selecting a spouse
Q16: When choosing your spouse, how important was it for him/her to have a good credit score? Q20: To what extent do you agree or disagree: “Before I was married, I considered how a potential spouse’s credit score could affect my finances.”
Credit Score Importance when Choosing a Spouse
Considered the Impact of Spouse’s Credit Score
Before Marriage
8 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Newlyweds discuss their financial goals more frequently and are more likely to discuss even small, everyday purchases with their spouses
Q13: Approximately how often do you discuss financial goals with your spouse?Q11: How likely are you to discuss the following financial topics with your spouse?
Small, everyday purchases
Large investments
64%
96%
75%92%
Purchase Discussions(Shown: % Likely to Discuss)
Married Newlyweds
Married Newlyweds
30%12%
50%59%
20% 29%
Financial Goal Discussions(Shown: % Frequency of
Discussions)Weekly Monthly Less often
70% Monthly+ 88% Monthly+
9 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Despite having more manageable financial situations than married couples overall, newlyweds are more debt-averse
Q15: Please indicate whether you would agree with that statement and whether you think your spouse would agree.
Our bills are overwhelming We feel comfortable taking on more debt
61% 59%
34% 36%
Financial Decision-Making Statements(Shown: % I would agree)
Married Newlyweds
FIRST YEAR FINANCIALS
11 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
ONE IN THREE NEWLYWEDS SAY THAT THEIR SPOUSE’S
ARE DIFFERENT THAN WHAT THEY EXPECTED BEFORE
MARRIAGE
Q10A: To what extent do you agree or disagree with each of the following statements?Q12: What is the maximum amount of money that you would spend before discussing it with your spouse?
While most newlyweds talk about finances before their wedding day, many still end up surprised by their spouse’s finances and spending habits
FINANCIAL
SITUATION
SPENDING
HABITS
33% 36%
$808AVERAGE AMOUNT NEWLYWEDS WILL
SPEND BEFORE DISCUSSING IT
WITH THEIR SPOUSE
MEN$1,259
WOMEN$383
12 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Some newlyweds even have secret financial accounts that their spouses do not know about – particularly new husbands
Q15A: Which of the following types of financial situations do you have?Q15B: You mentioned that you have a joint account with your spouse. Have you opened a joint financial account, merged financial accounts or both? (Asked if have a joint financial account, n=741)
A secret financial ac-count my spouse does
not know about
A joint financial account with my spouse
16%
74%
Credit Card & Banking Ac-counts
(Shown: % Currently Have)
46%
28%
26%
Financial Account Dis-cussions
(Shown: Among those with joint accounts)Opened a joint financial accountMerged a financial account
MEN20%
WOMEN12%
13 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Q14A: When you think about your first year of marriage with your spouse, what do you consider to be your biggest financial concern?
Having to merge financial accounts
Not being able to save enough money for retirement
Managing joint financial accounts
Not being able to support a family
Not being able to pay off debt
Developing a shared budget
12%
13%
14%
16%
19%
23%
Top Financial Concern
In their first year of marriage, most couples are most concerned about creating a shared budget with their spouse and paying off their debt
DEVELOPING A SHARED BUDGET
is the top financial concern for all newlyweds regardless of age and gender or whether this is their first marriage or they are
remarriedNOT BEING ABLE TO PAY OFF
DEBTis the top financial concern for less affluent newlywed couples (combined household income
less than $50,000)
14 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Q14: Which of the following do you consider to be your and your spouse’s biggest financial goal [in your first year of marriage]?Q13A: How do you and your spouse plan to use the money that you received at your wedding?
Newlyweds’ biggest financial goal is saving to buy a home, and most plan to put their wedding money toward a starter home
Paying off student debt
Paying off a home loan
Paying off wedding debt
Saving for retirement
Saving for a vacation
To save to provide for family
Saving for a home
5%
6%
7%
7%
13%
19%
20%
Plans for Using Wedding Money
Saving for a home
Saving for retirement
Paying off a home loan
Saving for college education
Saving for a vacation
Paying off student debt
Paying off wedding debt
13%
33%
18%
9%
7%
9%
1%
33%
12%
10%
10%
10%
9%
6%
Top Financial GoalNewlyweds Married
SAVING FOR A HOME
is the top financial goal for all newlyweds
regardless of age, gender and
household income or whether this is
their first marriage or they are remarried
15 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Getting good interest rates
Securing a loan to buy a house
Getting good insurance rates
Securing a loan to buy a carManaging a joint credit
accountSaving for retirement
Saving for children’s college education
33%
32%
29%
28%
24%
24%
18%
Role of Spouses’ Credit Score in Marriage
(Shown: % Has Played an Im-portant Role in Marriage)
Already, newlyweds report that their spouses’ credit score plays an important role in their marriage – and is a source of stress for some
Q19: In which of the following ways has your or your spouse’s credit score played an important role in your marriage?Q20: To what extent do you agree or disagree : “My spouse’s credit score OR My credit score has been a source of stress in our marriage.”
39%
61%
Credit Score as a Source of Stress in
MarriageYes No
80%ANY OF THESE
16 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Q21: Please indicate whether you and your spouse have ever encountered each of the following financial situations since getting married: Required a co-signerQ22: Which of the following describes the reason(s) you needed a parent or in-law to co-sign on your behalf? [Asked of those who have required a co-signer since getting married, n=188]
19% HAVE REQUIRED
A PARENT OR IN-LAW TO CO-SIGN ON THEIR BEHALF AFTER
GETTING MARRIED
Many newlyweds still need a co-signer even after their wedding day because they have a brief employment history or insufficient income
Debt from previous marriage
Poor credit
Insufficient income
Not been employed long enough
25%
34%
35%
36%
Reasons for Needing a Co-Signer(Shown: Among those who Required a
Cosigner)
IDENTITY THEFT & PROTECTION
18 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Q18A: How, if at all, do you monitor your personal credit?Q18: How knowledgeable do you feel about credit scores and reports?
35%
47%
18%
Knowledge of Credit Scores & ReportsVery knowledgeable
Somewhat knowledgeableNot knowledgeable
Newlyweds claim to be well-informed about credit, yet many do not engage in credit monitoring activities
Enrolled in paid credit monitoring service
Use a financial app
Receive fraud alerts from bank
Enrolled in free credit monitoring service
Review credit report annually
Check credit score annually
Check financial statements regularly
14%
17%
27%
28%
33%
41%
42%
Credit Monitoring Practices
38%ENROLLED IN
CREDIT MONITORING
SERVICE
19 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
22%
28%33%
17%
Identity Theft Impact on Fi-nancial Goals
(Shown: Among victims of identity theft)Impacted a great dealImpacted somewhat
Identity theft has a significant impact on newlyweds’ financial goals
Q21: Please indicate whether you and your spouse have ever encountered each of the following financial situations since getting married: Identity theftQ23: To what extent has identity theft impacted your family’s financial goals? [Asked of those who have been / whose spouses have been victims of identity theft, n=149]
50%IMPACTE
D
15% OF NEWLYWED
MARRIAGES HAVE AT LEAST ONE SPOUSE
THAT HAS BEEN A VICTIM OF
IDENTITY THEFT
APPENDIX
21 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Category Subcategory Tot
al
Gender
Male 49%
Female 51%
Age
18-24 14%
25-34 48%
35-44 23%
45+ 15%
Region
Northeast 18%
South 37%
Midwest 22%
West 23%
Race
White 74%
African-American
13%
Asian 7%Other 6%
Ethnicity
Hispanic 21%
Non-Hispanic 79%
Category
Subcategory Total
Children
Yes 35%
No 65%
Previous marriage 9%
Education
HS or less 14%
Some college 29%
College graduate 40%
Graduate school 17%
Previously
Married
No 74%
Yes, Once 18%
Yes, 2+ times 7%
Knowledge of own
credit score
Yes 79%
No 14%
Unsure 7%
Totals may not add up to 100 due to rounding
Category Subcategory
Self
Spouse
Credit score
Poor 9% 11%
Average 14% 13%
Good 23% 25%
Very Good 33% 31%
Exceptional
19% 18%
Unsure 2% 1%
Employment
Employed 80% 86%
Retired 3% 3%Unemploye
d 3% 3%
Student 4% 2%Homemake
r 8% 4%
Individual annual income
< $25K 29% 22%
$25K - $49K
26% 33%
$50K - $74K
19% 22%
$75K - $99K
13% 12%
$100K+ 9% 7%Refused 4% 4%
Demographics
22