Americans Don’t Know Enough About Money to Make Financial Decisions

More than half of Americans haven’t bought a home or made an investment in three years — because they didn’t know they could.

Low confidence in financial knowledge prompts 7 in 10 Americans to put off making decisions about money, says a study from retirement planning company Principal.

“People say they don’t have enough money to save and make financial choices,” says the study. “However, the research finds that what’s largely driving this procrastination isn’t necessarily lack of money; it’s lack of the right, confident mindset.”

Confidence is key

Most Americans (60 percent) say their income is the reason they put off making financial decisions. However, the study reveals that income and debt level do not contribute to our likelihood to make financial decisions. For instance, 23 percent of households with a high-income level postpone making major financial decisions, too.

Only 30 percent of Americans feel confident in the knowledge they have about managing finances. And those who aren’t confident are 64 percent more likely to postpone money decisions, regardless of their income.

People who spend time learning about financial planning are 75 percent more confident in their future finances…