View
2.375
Download
1
Embed Size (px)
DESCRIPTION
The latest Experian Consumer Services reveals that half of married adults say credit played a role when choosing a life-long mate. When asked to rank important qualities in a partner, 95% of participants put “financial responsibility” as important, with “physical attractiveness” and “career ambition” following behind at 86 percent and 77 percent, respectively. In fact, when asked about how important it is to have similar goals, married adults rank financial compatibility high on the list, even slightly higher than sex and intimacy. This and other fascinating statistics on marriage and credit are covered in this presentation.
Citation preview
1
EDELMAN BERLAND
Experian Credit ScoreMarriage Survey Report
April / May 2014
2 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
WHO HOW MANY ACCURACY WHEN HOW
Married Adults Nationwide n=1,010 Margin of Error
= ± 3.1%
Data Collection Occurred
April 16-19, 2014
Online Survey
Methodology
Results are compared with those of an online survey of n=1,000 unmarried adults ages 30-49 nationwide was conducted June 12-17, 2013.
Methodology
3 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
• Married couples value an open dialogue about finances; most discuss their financial goals at least once per month
• Married adults are more apt to discuss large investments than small, everyday purchases. The average amount of money they will spend before discussing it with their spouse is $812.
• Women and post-recession couples – those married after the 2008 recession – place greater value on financial dialogue and are more likely to discuss smaller-ticket items with their spouse.
• Half of married adults say that credit scores were important to them when choosing a spouse
• Credit scores were most important to women and to post-recession couples.• Half of married couples agree that credit played an important role in their marriage when
securing a home loan or getting a good interest rate.
• Credit scores are the only financial topic that couples do not discuss before their wedding day
• One in ten married adults have never discussed credit scores with their spouse.• Post-recession couples are more apt than those wed before the 2008 recession to discuss
credit scores with their spouse before tying the knot.
• Credit scores are a source of stress in one in five marriages.• Spouses who discussed credit scores before getting married are more likely to agree on how
to use credit as a couple.• One in ten married couples have been affected by identity theft (14%), have needed a co-
signer after their wedding day (11%) or have needed to borrow money to avoid faulting on debt (11%).
Key Findings
FINANCIAL COMPATIBILITY
5 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
98% 95%86%
77%
98%93% 90%
81%
Attribute Importance(Shown: % Important)
Married Unmarried
Married adults value financial responsibility more than physical attractiveness in a spouse
Q7: How important are each of the following attributes [when considering a long term romantic partner] / [in a spouse]?
(Shown: % Important)
Personality Compatibility
97%
98%
Financial compatibility
94%
96%
Physical Attractiveness
87%
85%
Career Ambition69%
86%
Attribute Importance by Gender Among Married
Adults
6 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
98% 97% 96% 95%
77%69%
44%
83%
95% 91% 95%
78%
63%
45%
Compatibility Importance(Shown: % Important)
Married Unmarried
Financial compatibility is important to 96% of married adults and 91% of their unwed counterparts
Q8: [In looking for a long term romantic partner] How important is it for you [and your spouse] to be compatible on each of the following?
(Shown: % Important)
Family goals97%
98%
Life goals94%
99%
Finances96%
97%
Sex & intimacy95%
96%
Career goals72%
81%
Religion & spirituality
64%
74%
Politics43%
44%
Compatibility Importance by Gender Among Married Adults
7 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
89% 85%72% 67%
43%35%
86% 84%
51%36%
91% 86%
60%
35%
88%
48%34%
Married Unmarried
Positive Attributes
(Shown: % More Attractive)
Negative Attributes(Shown: % Less
Attractive)
Financially responsible
Pays bills on time
Maintains a budget
Open about personal finances /
credit history
Has reasonable amount of debt with
plan to pay off
Knows his/her
credit score
Q9: How does each of the following attributes influence the attractiveness of a [potential romantic partner] / [spouse]?
N/AN/A
N/A
Spends beyond his/her means
Has large amount of debt with no plan to
pay off
Avoids discussing personal finances /
credit history
Never checks
credit score
Married couples value openness about personal finances and credit history more than those who are dating
N/A
FINANCIAL BEHAVIORS
9 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Most married couples discuss their financial goals on a monthly basis, and they are more likely to discuss large investments than everyday purchases
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?Q12: What is the maximum amount of money that you would spend before discussing it with your spouse?
$812Average amount
married adults will spend
before discussing it
with their spouse
20%
31%19%
24%
5%
Financial Goal Dis-cussions
(Shown: % Frequency of Discussions)
WeeklyA few times a monthMonthlyA few times a yearAnnually or less often
64%
96%
Purchase Discus-sions
(Shown: % Likely to Discuss)
70%MONTH
LY
Gen Y 85% Post-Recession 82%
Gen Y 77%Post-Recession 75%
10 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Two in five married adults consider their household finances a shared responsibility that evolves over the course of a marriage
Q6: Who would you say is primarily responsible for each of the following in your household? FinancesQ15: Please indicate whether you would agree with that statement and whether you think your spouse would agree.
48%
39%
13%
Responsibility for Household Finances
(Shown: % Definitely/Proba-bly)
Self Shared Spouse
86% 85%78%
73%
Financial Decision-Making Statements
(Shown: % Agree)
I would agree
Men 53%
Boomers 44%
11 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Most married couples are focusing on saving for retirement or paying off a home loan, yet many still feel comfortable taking on additional debt
Q14: Currently, which of the following do you consider to be your and your spouse’s biggest financial goal?Q15: Please indicate whether you would agree with that statement and whether you think your spouse would agree.
Other
Paying off wedding debt
Saving for a vacation
Paying off student debt
Saving for college education
Saving for a home
Paying off a home loan
Saving for retirement
10%
1%
7%
9%
9%
13%
18%
33%
Top Financial Goal(Shown: % Selected)
Our bills are overwhelming
We feel comfortable taking on more debt
61% 59%64% 67%
Financial Decision-Making Statements
(Shown: % Agree)
I would agree
Men 62%
Boomers 56%
Gen Y 23%
Gen Y 22%
CREDIT SCORES
13 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Nearly half say it was important for their spouse to have a good credit score; a third considered the impact of their spouse’s credit on their own finances
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 with the following statement: “Before I was married, I considered how a potential spouse’s credit score could affect my finances.”
14%
35%30%
20%
Credit Score Importance in Choosing a Spouse
Very importantSomewhat importantNot too important
49%IMPORTA
NT
33% considered how a potential spouse's credit score could
affect their finances before getting
married
Women 56%
Women 38%
Gen Y 44%
Unmarried Adults:66% IMPORTANT
14 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Credit scores are the only financial topic that couples do not discuss before their wedding day
Q10: Please indicate when, if ever, you learned each of these things about your spouse. His/her…
Annual income
Spending habits
Student loan debt
Bill payment history
Long term financial
goals
Retirement savings
Credit score
79% 76% 73% 69%60%
55%
43%
18% 21%
10%
26%32% 35%
43%
3% 3%
17%
5% 9% 10% 14%
Financial Topic Discovery(Shown: % Learned about Spouse)
Before marriage After marriage Never
Gen Y 56%
Women 46%
Men 19% Gen X 16% Boomers
16%
15 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
One in ten married couples have never discussed credit scores; credit has been a source of stress in 21% of marriages
Q17: Have you ever discussed credit scores with your spouse?Q20: To what extent do you agree or disagree with the following statements: “My spouse’s credit score / My credit score has been a source of stress in our marriage.”
86%
12%
2%
Credit Score Discussions
with a Spouse
Yes No Unsure
21%
79%
Credit Score as a Source of Stress in
Marriage
Yes No
Unmarried Adults:
48% HAVE DISCUSSED
CREDIT SCORES WITH A ROMANTIC PROSPECT /
PARTNER
16 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Most Likely to Agree85% Overall
• Those who have discussed credit scores (88%)
• Those who discuss financial goals monthly (88%)
Q20: To what extent do you agree or disagree with the following statement: “My spouse and I agree about how to use credit as a couple.”
49%
36%
10%5%
Spousal Agreement on How to Use Credit as a
Couple
Strongly agreeSomewhat agreeSomewhat disagreeStrongly disagree
Most Likely to Disagree
15% OVERALL
• Those who have not discussed credit scores (32%)
• Those who discuss financial goals less than monthly (21%)
85%AGREE
Most married couples agree on how to use credit; those with an open dialogue about credit scores are more apt to agree
17 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
55%48%
42%
29% 28%19% 9%
68%
52%42%
53%
Poor Credit: Areas of Concern(Shown: % Important Role in Marriage / Potential Impact)
Married Unmarried
%
Credit plays the biggest role in marriages when spouses are securing a home loan or applying for good interest rates
Q19: [If your long term romantic partner had a poor credit score, in which of the following ways would you be worried it might affect you?] / [In which of the following ways has your or your spouse’s credit score played an important role in your marriage?]
Securing a loan to buy a
house
Getting good interest rates
Securing a loan to buy a
car
Managing a joint credit
account
Getting good insurance
rates
Saving for retirement
Saving for children’s college
education
N/A N/A N/A
18 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
63%54%
49%
32% 30%24% 10%
59%47%
42%
25% 25%17% 8%
42% 44%37%
30% 29%
16%9%
Poor Credit: Areas of Concern(Shown: % Important Role in Marriage)
Married more than 20 yrs Married 5-20 years Married 5 yrs or fewer
%
Couples married over 20 years know that credit plays an instrumental role in marriages
Q19: In which of the following ways has your or your spouse’s credit score played an important role in your marriage?
Securing a loan to buy a
house
Getting good interest rates
Securing a loan to buy a
car
Managing a joint credit
account
Getting good insurance
rates
Saving for retirement
Saving for children’s college
education
IDENTITY THEFT & CO-SIGNING
20 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
More than one in ten marriages have been affected by identify theft; one in five victims say fraud impacted their family’s 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=141]
14% of marriages have
at least one spouse that has been a victim of identity
theft
7%
13%
37%
43%
Identity Theft Impact on Fi-nancial Goals
(Shown: Victims of Identity Theft)
Impacted a great dealImpacted somewhatNot impacted too much
20%IMPACTE
D
21 © 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.Q22: 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 parent / in-law to co-sign on their behalf, n=108]
11% have required a parent-in-law to co-sign on their
behalf after getting married
11% have borrowed a
significant amount of money from a family
member to avoid defaulting on debt
One in ten married couples have required a co-signer since their wedding day, largely due to having poor credit
Debt from previous marriage
Not been employed long enough
Insufficient income
Poor credit
6%
24%
34%
45%
Reasons for Needing a Co-Signer
(Shown: Those who Required a Cosigner)
KEY SUBGROUP ANALYSIS
23 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
In line with the dating survey findings, wives place greater value than husbands on financial dialogue and openness about credit scores
Q9: How does each of the following attributes influence the attractiveness of a spouse?Q16: When choosing your spouse, how important was it for him/her to have a good credit score? Q12: What is the maximum amount of money that you would spend before discussing it with your spouse?
% More attractive
Is open about his/her personal finances and credit history
60% 73%
Knows his/her credit history 30% 40%
% Less attractive
Avoids talking about personal finances and credit history
44% 59%
Never checks his/her credit score
28% 43%
% Important
Has a good credit score 43% 56%
< $100
$100-500
$500+
34%
42%
25%
28%
52%
20%
Maximum Amount Spent Before Dis-
cussing with Spouse
Women Men
$1,231(MEAN)
$396(MEAN)
24 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
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 purchasesQ10: Please indicate when, if ever, you learned each of these things about your spouse: Credit score, Pre-MarriageQ12: What is the maximum amount of money that you would spend before discussing it with your spouse?
Pre-Recession Couples (Married
Before 2008)
Post-Recession Couples (Married
2008 or Later)
Discuss financial goals with spouse at least monthly
65% 82%
Likely to discuss small, everyday purchases with spouse
59% 75%
Discussed credit scores before marriage
35% 61%
The 2008 recession has made couples increasingly conscious of the importance of credit scores and discussing finances
< $100
$100-500
$500+
26%
51%
23%
42%
38%
20%
Maximum Amount Spent Before Dis-
cussing with Spouse
Post-Recession Pre-Recssion
$1,022(MEAN)
$256(MEAN)