1. FINRA’s Updated National Financial Capability Findings
I. Why is this important to CFSI?
FINRA’s findings will be a major indicator for research firms and policy makers as they tailor
their programs and policies designed to build financial capability. Richard Cordray, current
director of the CFPB, welcomed as the study as providing greater insight into how consumers
choose products and feel about their financial needs. Their national financial capability study
features a state-by-state breakdown, which will be helpful in CFSI’s conversations with regional
financial products providers.
II. Summary of FINRA’s 2012 National Financial Capability Study
FINRA deployed an online survey to 25,909 adults across the US, with about 500 respondents
per state, plus the district of Colombia. The study focused on four elements of financial
capability: making ends meet, planning ahead, managing financial products, and financial
knowledge & decision making.
National SurveyAverages
 41% of respondents indicated they are spending less than they make. 22% report they
overdraw their checking account occasionally, while 26% have unpaid medical bills.
 56% of Americans lack emergency funds that would cover three months’ worth of
expenses.
 Regarding payment methods, 33% reported using cash frequently, while 6% use
prepaid cards frequently.
 34% of Americans continue to pay the minimum payment only on their credit cards.
 In the past 5 years, 30% of Americans have used one or more non-banking borrowing
methods.
 Financial literacy fell slightly, going from 42% of respondents in 2009 to 38% in 2012
answering four or five questions right on the survey.
Demographics Findings
 Populations showing most financial stress and/or least financial capability included
young Americans (34 and under), those with household incomes under $25,000 per
year, and those with no post-secondary educational experience. African-Americans and
Hispanics, who are disproportionately represented among these demographic segments,
are almost more likely to be vulnerable. Women tended to have somewhat lower levels
of financial capability than men.
 Citizens of California, Massachusetts and New Jersey who were surveyed were the
most financially capable. The states with the least financially capable citizens included
Mississippi, Arkansas, and Kentucky.