Blowing Off the Personal Budget

Two thirds of Americans just don’t bother. Preparing a detailed written or computerized budget each month to track income and expenses, that is.

According to Gallup’s annual survey on the economy and personal finance, the people more likely to pin down expenses with a detailed budget have at least some college education, identify themselves as Republican or independents, and make at least $75,000 a year. Democrats slip to just over a quarter: only 26% describe themselves as keeping track of household expenses.

When it comes to getting advice that will help with finances, Americans are slightly more likely to say they use a computer or an online financial program (32%) to manage money than work with a certified financial planner (24%). According to the survey results, this is nearly a complete flip from a decade ago. In 2003, Gallup found 30% of survey respondents using a financial professional and 24% using an online program.

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Given the growth of online banking and computer use in general, it makes sense that people would find online financial management a convenient way to manage finances, but the number has not increased dramatically from a decade ago. Those survey respondents who use a financial professional or computer or online program to keep track of finances have at least some college education and make at least $75,000 a year.

Those Americans who keep a detailed budget are a distinct minority, according to Dennis Jacobe, chief economist at Gallup. It is possible that the strain of the recession or the ability to check account balances frequently or get money at any time has muted the need to budget that people might feel. However, Jacobe said, good management of finances and the avoidance of financial difficulties usually involve creation of a family budget.

Results for Gallup’s poll were based on telephone interviews with a random sample of 1,012 adults, aged 18 and older, in all 50 states and the District of Columbia, between April 11 and 14.

More Are Packing Their Bags for Summer Fun

A big uptick in summer vacation travel is forecast by LowFares.com—but people are avoiding cruises after Carnival Cruise’s unfortunate events earlier this year.

While only 70% of survey respondents took a summer travel vacation in 2012, 93% plan a summer travel vacation this year, according to the survey sent to more than 100,000 U.S.-based subscribers from the site’s email list.

Nearly a third of the respondents (29%) who are not planning to take a cruise vacation this summer said that the recent negative news on the cruise industry had an impact on their decisions

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Other findings include:

  • 21% of respondents who are planning to travel this summer are setting aside a larger budget for their travel plans than last year, while 52% expect to spend about the same amount;
  • 51% of respondents are planning summer vacations to U.S. destinations, while 11% are planning trips to Europe and another 11% are planning trips to the Caribbean; and
  • 43% of respondents said they plan to purchase bundled summer vacation packages that include air or ground transportation (or both) plus hotel.

LowFares.com is a travel price comparison search site for deals on flights, hotels, rental cars, cruises and vacation packages.

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