Experian Consumer Newlywed Survey

22
1 EDELMAN BERLAND Experian Credit Score Newlywed Survey Report February 2016

Transcript of Experian Consumer Newlywed Survey

Page 1: Experian Consumer Newlywed Survey

1

EDELMAN BERLAND

Experian Credit ScoreNewlywed Survey

Report

February 2016

Page 2: Experian Consumer Newlywed Survey

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

Page 3: Experian Consumer Newlywed Survey

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

Page 4: Experian Consumer Newlywed Survey

THE MODERN MARRIAGE

Page 5: Experian Consumer Newlywed Survey

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?

Page 6: Experian Consumer Newlywed Survey

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…

Page 7: Experian Consumer Newlywed Survey

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

Page 8: Experian Consumer Newlywed Survey

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+

Page 9: Experian Consumer Newlywed Survey

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

Page 10: Experian Consumer Newlywed Survey

FIRST YEAR FINANCIALS

Page 11: Experian Consumer Newlywed Survey

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

Page 12: Experian Consumer Newlywed Survey

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%

Page 13: Experian Consumer Newlywed Survey

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)

Page 14: Experian Consumer Newlywed Survey

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

Page 15: Experian Consumer Newlywed Survey

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

Page 16: Experian Consumer Newlywed Survey

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)

Page 17: Experian Consumer Newlywed Survey

IDENTITY THEFT & PROTECTION

Page 18: Experian Consumer Newlywed Survey

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

Page 19: Experian Consumer Newlywed Survey

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

Page 20: Experian Consumer Newlywed Survey

APPENDIX

Page 21: Experian Consumer Newlywed Survey

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

Page 22: Experian Consumer Newlywed Survey

22