The report: The Secret Financial Lives of Americans: A Deep Dive into Money Struggles and Industry Opportunities
Source: Nonfiction Research
Why we picked it: The report outlines how many Americans live double lives when it comes to their finances — often appearing financially stable outwardly despite struggling with stress and instability about money. Financial professionals should look to the data to identify opportunities to better support their customers. In addition to the below summary, The Financial Brand editorial team recommends reading the full report.
Executive Summary
In an era of Instagram-perfect lives and carefully curated social media profiles, a stark reality lurks beneath the surface of American finances. A groundbreaking report by Nonfiction Research reveals that millions of Americans are leading double lives when it comes to money, presenting a façade of prosperity while privately grappling with financial stress and instability.
The study, which involved over 2,000 respondents and synthesized more than 150 pieces of secondary research, paints a troubling picture of the nation’s financial health. It also highlights a significant gap in the financial services industry, pointing to untapped opportunities for companies willing to address the real needs of American consumers.
Key Takeaways:
- 52% of Americans have cried at some point in their life because they didn’t have enough money. “For 150 million Americans, money is something to cry about.”
- 37% have gone to sleep hungry due to lack of funds
- 12% admit to having stolen something because they couldn’t afford to buy it
- 5% have resorted to taking half-eaten food out of garbage cans
Perhaps most alarmingly, these issues aren’t confined to lower-income brackets. Even among those earning over $200,000 annually, 41% report having cried due to financial stress.
What we liked about it: The report is well-written and accessible, featuring diverse data and interesting sources: Not only bank executives, but also bank robbers, for example.
What we didn’t: We didn’t find anything to dislike.
The Double Life Phenomenon
Americans are increasingly adept at maintaining a public image of financial stability while privately struggling. The report found that people are far more likely to share information about vacations (61%) and big purchases (40%) with close friends than to disclose their salary (14%), debt (13%), or savings (9%).
This dichotomy is exacerbated by social media, where 28% of millennials admit to intentionally making themselves appear wealthier in their posts. The pressure to keep up with “Instagram-perfect” lifestyles means many to finance their public persona by borrowing from their private financial resources, often at the expense of long-term financial health.
A Stark Realization From the Report:
One way to understand how Americans wrestle with finances is to hear about the things they didn’t do because they were worried about money. Because these behaviors are invisible — none show up in store sales, pricing models, common survey responses, or attendance numbers — they’re too often missed by conventional research.
What’s perhaps even more startling is that Nonfiction’s report suggests the financial services industry is ill-equipped to address modern consumer needs. Key findings include:
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- Only 21% of Americans have a financial advisor outside of tax work
- 64% of those with financial advisors still feel unsatisfied in terms of “having someone to talk to about money”
- 64% of respondents say their bank has never offered any of the basic financial planning services listed in the survey
The report identifies eight key areas where Americans want help but aren’t receiving it from mainstream financial services:
1. Evaluating fair pay
2. Maximizing salary in current job
3. Planning career moves to increase earnings
4. Monthly budgeting
5. Right-sizing debt
6. Planning affordable vacations
7. Holistic financial life advice
8. Dealing with spending pressures from status anxiety
Where Banks Are Failing their Consumers
Everyone needs accountability in their lives, especially in an age of social media-spurred FOMO — 71% of Gen Z adults said they have bought something they didn’t need because they had “to have it”. Even worse: 19 million Americans struggle with compulsive shopping disorder.
From the Words of a Shopaholic:
'I'd feel really good for a period of time and then feel terrible. Eventually, the high got shorter.'
Consumers are turning to their family (63%), friends (35%) and even co-workers (17%) to make ends meet. But, even more concerning is when they finance the public-facing part of their lives with the secret half of their double lives lives (savings accounts, potential retirement savings, credit cards).
It leaves a startling reality: 44% of Americans would be unable to cover a $400 emergency without either selling something or borrowing money, the report finds — and a third of non-retired Americans haven’t saved anything for retirement.
From a Survey Respondent:
'I feel like I'm in a hold and all I have is a shovel.'
People are looking for advice — particularly from the banking providers they’re already working with financial responsibilities from evaluating if they’re being paid fairly, planning a monthly budget, planning affordable vacation and even maximizing their salary at their current job.
“Unfortunately, not a single one of these services is being provided by the mainstream financial services industry,” the report reads. “Some of these services do exist but are only provided by financial coaches, a cottage industry. Others, like the ones related to increasing household income through work income, aren’t even considered financial services.”
Not only are bankers not providing these critical, trust-building services to their consumers — for some survey respondents Nonfiction spoke to, they’re hardly “better than a mattress.” Almost half of Americans surveyed said they’re been so frustrated with a bank to the point of getting angry.
From a Survey Respondent (A Convicted Bank Robber):
'Banks being crooks is just the way it is.'
Banking executives know it. In the privacy of an anonymous survey, one bank executive told Nonfiction: “You have to torture people pretty hard before they leave a bank.”
The report proposes a solution: the role of a “Personal CFO” for everyday Americans. This service would provide holistic financial guidance, similar to how a primary care physician oversees overall health. The Personal CFO would:
- Understand a client’s values and translate them into financial goals
- Create monthly budgets and project long-term financial outcomes
- Demystify personal finance and teach about behavioral finance pitfalls
- Help maintain or repair credit and right-size spending
- Coordinate with financial specialists as needed
Interested in learning more about what the report advises financial institutions to become that “Personal CFO” in consumer’s lives? There’s more where that comes from. Go check out the report.
Editor’s note: This article was prepared with AI language software and edited for clarity and accuracy by The Financial Brand editorial team.