WIXLIB

2018 Consumer Financial Literacy SurveyPrepared For:March 13, 20181

Survey MethodologyThe 2018 Financial Literacy Survey was conducted online within the United States by Harris Poll on behalf of the NFCC (National Foundation for CreditCounseling) between February 28th and March 2nd, 2018 among 2,017 U.S. adults ages 18 . Figures for age, sex, race/ethnicity, education, region andhousehold income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was used toadjust for respondents’ propensity to be online. Prior to 2013, this survey was conducted by telephone.All sample surveys and polls, whether or not they use probability sampling, are subject to multiple sources of error which are most often not possible to quantify orestimate, including sampling error, coverage error, error associated with nonresponse, error associated with question wording and response options, and postsurvey weighting and adjustments. Therefore, Harris Poll avoids the words “margin of error” as they are misleading. All that can be calculated are different possiblesampling errors with different probabilities for pure, unweighted, random samples with 100% response rates. These are only theoretical because no published pollscome close to this ideal.Respondents for this survey were selected from among those who have agreed to participate in Harris Poll surveys. The data have been weighted to reflect thecomposition of the adult population. Because the sample is based on those who agreed to participate in the Harris Poll panel, no estimates of theoretical samplingerror can be calculated.Significance TestingWhen results from sub-groups of a sample appear in the detailed tabulations, an indicator of statistically significant differences is added to the tables run on ourstandard demographic banners. Significance testing is done to the 95% confidence level, and the test is performed on percentages as well as mean values. Eachsub-sample is assigned a letter. When the percentage of one sub-sample is significantly different from the percentage of another sub-sample, the letterrepresenting one of the two samples appears next to the percentage (or mean) of the other sample.For instance, the percentage of males answering yes to a particular question may be compared to the percentage of females answering yes to the same question.In the example below, the male sample is assigned the letter B, and the female sample is assigned the letter C. Here, respondents were asked whether a certainbusiness practice is acceptable. 67% of women said that it was -- a proportion significantly greater than the 57% of males who believe that the practice isacceptable. To indicate that women are significantly more likely to find the practice acceptable than are men, the letter B -- the letter assigned to the male subsample -- appears next to the “67%” in the female column. Similarly, the 37% of men that find the practice unacceptable is significantly greater than the 29% ofwomen who do so and, therefore, the letter C -- the letter assigned to the female sub-sample -- appears next to the “37%” in the male 03Acceptable61163%27457%33767%BNot Acceptable31933%17137%C14829%Don’t Know374%184%194%Unweighted BaseWeighted Base2

Key FindingsBudget, Spending, & SavingIn 2018, about two in five U.S. adults (41%) – a proportion that has held roughly steady since 2007 – say they have a budget and keep close track of how muchthey spend on such things as food, housing, and entertainment.About half of U.S. adults (51%) are now spending the same as last year, while about 1 in 4 each report they are now spending more (24%) or less (25%) thanbefore. The most influential factor when deciding how to pay in certain situations (i.e., cash vs. debit vs. credit) remains the amount of the purchase (49%),followed by the points/rewards they can earn by using their credit card (40%) and where/how they are shopping (online vs. brick-and-mortar store) (36%).Over half of adults (53%) say they are now saving the same as last year, while the proportion of those who say they are saving more has increased slightly tonearly 3 in 10 (29% vs. 26% in 2017).The proportion of U.S. adults that has non-retirement savings remains nearly 7 in 10 (69%), but where adults are saving or investing their money varies: as inprevious years, 2 in 3 continue to use a savings account (66%), but the use of 401k plans (37%) and investments/mutual funds (30%) has increased since 2017(32% and 26%, respectively).RetirementWhen it comes to retirement savings, nearly 2 in 3 U.S. adults (65%) say they save some portion of their household’s annual income for retirement, an increase of5 percentage points since last year (60%).Despite the fact that most are saving at least something for retirement, fewer than 1 in 5 U.S. adults (19%) feel very confident – and about 3 in 10 (29%) revealthey are not at all confident – that they are saving enough. And, when asked what areas of personal finance worry them most, the top response is still retiringwithout having enough money set aside (16%), followed closely by insufficient “rainy day” savings (14%).HomeownershipNearly 4 in 5 U.S. adults (78%) have tried to purchase their own home, and 72% are currently homeowners.The top 5 barriers faced by potential homeowners are: Rising home prices; Lack of funding for the down payment or closing costs; Existing debt; Limited housing options within available budget; and, Poor credit history or low credit score.Credit Card DebtA majority of U.S. adults (61%) have had credit card debt in the past 12 months, and nearly 2 in 5 (38%) indicate their household carries such debt from month tomonth. Few have done something in an attempt to obtain a lower interest rate for their credit card debt, primarily because they are satisfied with their current ratesor they had never thought of it.3

Key Findings (continued)Knowledge of, and Confidence in, Personal FinanceOver half of U.S. adults (55%) continue to give themselves a grade of A or B on their knowledge of personal finance, and 9 in 10 (90%) say they are very orsomewhat confident that the last time they made a big financial decision (such as picking a credit card, buying a car, or refinancing their mortgage), they madethe right choice. More than 3 in 4 (77%) feel knowledgeable about how their credit score is determined; About 4 in 5 (79%) feel knowledgeable about the fees their bank or financial institution charges; and, Just over half (52%) say they are knowledgeable about payday loans and other types of high-interest short-term loans (52%), an increase of 5 percentagepoints from 2017 (47%).Yet, about 8 in 10 (79%) agree – including nearly three in ten (29%) who strongly agree – that they could still benefit from advice and answers to everydayfinancial questions from a professional. In fact, when asked who they would turn to for general financial/money management guidance, the top response is afinancial professional such as a CPA or financial planner (37%), followed closely by friends and family (36%).In 2018, fewer U.S. adults would turn to a bank or credit union for financial advice (25% vs. 32%).Debt and Credit CounselingWhile nearly 3 in 4 U.S. adults (72%) continue to pay all their bills on time and have no debts in collection, one in four (25%) admit they do not pay their bills ontime and nearly 1 in 10 (8%) now have debts in collection, both a slight increase from last year (22% and 5%, respectively).Only 15% of all U.S. adults say they have never had any debt, while more than half (55%) struggle to minimize their debt, primarily due to unexpected financialemergencies (24%).When asked why they would not reach out to a professional non-profit credit counseling agency for help if they were having financial problems related to debt,about one in five adults (21%) say they can resolve their own problems without outside help, and a similar proportion (19%) don’t know which agency to turn to, aslight increase since last year (15%).About one in four U.S. adults (24%), or almost 59 million Americans1, indicated they would reach out to a professional non-profit credit counseling agency for help.Small Business FinancingIf they were looking to start a new business Nearly 1 in 3 (32%) would seek a business loan through a community (15%) or national (14%) bank, credit union (17%), or online-only lender (6%) About 1 in 4 (26%) would rely on personal funds (22%) or liquidate personal assets (9%) Nearly 1 in 5 would apply for a public or private grant (19%), or seek an SBA-backed loan (18%)One in three U.S. adults (34%) are not at all sure how they would come up with the money if they were looking to finance a new business.1Calculation based on U.S. Census Bureau’s 2016 Current Population Survey (CPS), which estimates there are 244.81 million adults ages 18 residing in the United States:244.81M x 0.24 58.75M.4

Posted Topline tal2014%Which of the following bestdescribes how you manage Total2009%Total2008%Total2007%Base: Adults 18 (n 2,017)(n 1,649)(n 1,668)(n 2,017)(n 2,016)(n 2,037)(n 1,007)(n 1,010)(n 2,028)(n 1,000)(n 1,001)(n 1,003)ABCDEFGHIJKLI have a budget and keep close trackof how much I spend on such thingsas food, housing and entertainment41404040394043 E43 E43 EL424239Don’t Have A Budget (Net)5960 GHI60 GHI60 GHI61 GHIJ60 GHI56565657N/AN/AI have a somewhat good ideaabout how much I spend on suchthings as food, housing andentertainment, but I don’t keepstrict track of my spending on L48GHIJKL34343739 GH3536I don’t have a good idea how muchI spend on such things as food,housing and entertainment, but Ikeep track of my overall spendingand try to stay within certain limitsthat I’ve set for myself89998815ABCDEFJK15ABCDEFJK14ABCDEFJ11 AEF12ABCDEF15ABCDEFJKI don’t have a good idea how muchI spend on such things as food,housing and entertainment, and Ioften don’t keep track of my DEFI7ABCDEFIDon’t /AN/A****215

Q710Total 2018%Total 2017%Total 2016%Total 2015%Total 2014%Which of the following bestdescribes your financialsituation?Total 2013%Total 2012%Total 2011%Total 2010%Total 2009%Total 2008%Base: Adults 18 (n 2,017)(n 1,649)(n 1,668)(n 2,017)(n 2,016)(n 2,037)(n 1,007)(n 1,010)(n 2,028)(n 1,000)(n 1,001)ABCDEFGHIJKI pay all of my bills on time andhave no debts in collection72 GHI75ADEFGHIJK74DEFGHIJK71 G71 G71 G646869 G70 G69 GDo Not Pay All Bills On Time(Net)25 BC2222242426 BC28 BCDE28ABCDE26 BCN/AI sometimes miss a paymentbut have no debts incollection101099101014ABCDEFJK13ABCDEFJ1011I struggle to pay my billsevery month but have nodebts in collection77777811ABCDEFH89 ABCDE10ABCDE97BCFGHIJK456 BGHIJ6 BGHIJ544445I am seriously consideringfiling for bankruptcy or havefiled for bankruptcy in thepast three years2 BCDE11112 BCDE3 BCDE2 BCDE2 BCDE2 BCDE2 BCDEI am not involved at all in anyfinancial decisions including howmoney is spent in our household3 GHIJ3 GHJ3 GHJ5ABCFGHIJK4 GHIJK3 GHIJ112 GHJ12Don’t /A*11118992ACDEFH90888990 D908991 ADE91 DN/A8 BCIJ567B7B7B7B7B66N/AI am getting calls fromcollectors and struggle to paymy bills every monthSpecial Net: No debts incollectionSpecial Net: Debts incollection633ABCDEFHIJ15ABCDEFJK

Q715Total 2018%Total 2017%The last time you made a big financial decision (e.g., picking a credit card,buying a car, refinancing your mortgage), how confident were you thatyou made the right choice?Total 2016%Total 2015%Base: Adults 18 (n 2,017)(n 1,649)(n 1668)(n 2,017)ABCD9092 A9192 AVery confident52555552Somewhat confident37383640 C10 BD898Not very confident7B566Not confident at all3D332Very/Somewhat Confident (Net)Not at all/Not Very Confident (Net)7