When we think of socio-economic tiers, many of us probably think of something along the lines of: rich, wealthy, upper-middle-class, middle-class, working class, and poor.
However, the definition for each tier is ever-changing. Your status varies not just based on your income, but also on external factors such as your location.
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Edward Jones partnered with polling firm Gallup to identify new financial categories for North Americans — ones that reflect people’s overall financial well-being rather than metrics like income or net worth.
The survey of over 5,000 adults helped break Americans down into three tiers: financially fulfilled, financially conflicted, and financially stressed. These address how respondents feel about their money overall. You could be a high earner but still feel financially stressed due to debt or a lack of understanding about money management.
“For me, it is less about affording luxuries, and more so knowing that if I lost my job tomorrow, I could still pay my mortgage for the next few months,” said a 30-year-old male participant in Michigan who identified as financially fulfilled.
Financially stressed, conflicted, or fulfilled?
The Gallup survey found that 16% of Americans were financially fulfilled, 51% were financially conflicted, and 32% were financially stressed. (These numbers were rounded to the nearest percentage.)
The study defined financial fulfillment as the sense that your financial decisions align with your values, that you feel in control of your finances, and that you associate money with positive emotions.
“Two words come to mind: secure and fortified,” said the financially fulfilled man from Michigan.
If you’re financially conflicted, the topic of money brings up mixed emotions, and you aren’t entirely confident or unconfident. You sometimes have to make compromises between your finances and other priorities.
“We decided to forgo our annual vacation this year, which was a really hard decision,” said a 54-year-old financially conflicted woman in Missouri. “But we wanted to focus on paying off some bills early that are close to being paid off instead.”
People who are financially stressed have low confidence and control over their money. Finances evoke negative feelings, and financial decisions often involve difficult sacrifices that conflict with their other values.
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