Financial literacy starts at a young age. Your parents offer tips — and perhaps an allowance — to show you the value of a dollar. You likely develop spending habits early in your life, too.

Good and bad spending habits can change over time based on your financial status and needs. But there’s always more to be learned when it comes to spending.

Here are some eye-opening financial facts to keep in mind that can directly impact how you manage your money from now on.

Financial Facts That Will Change The Way You View Spending

Most People Pay For Unexpected Expenses And Emergencies With Their Savings

At some point in your life, you will encounter some sort of financial emergency, whether it’s a medical issue, losing a job, or an expensive home repair.

One of the most troubling financial facts is that a whopping 61% of people in America do not have adequate savings to cope with even a $1,000 emergency. With an average car repair running around $500 and ambulance use topping $1,000 for those uninsured, that’s extremely troubling.

So how do Americans pay for such emergencies? Unfortunately, around 38% say they are forced to dip into their savings, while 19% finance the cost with a credit card at variable interest rates.

Sometimes using your savings is the only option, making this one of the most motivational financial facts if your savings aren’t up to par.

Just 1/3 Of Households Have Financial Plans For The Long Term

A big part of money management is setting budgets and pursuing financial goals in a realistic time frame. Without a long-term financial plan (just 30% of Americans have one), that’s no easy task.

It isn’t the most fun thing to do, but reviewing monthly budgets while planning for your future needs (medical care, education, rent, or a mortgage) is a definite must. And you’ll need to rethink your spending habits to accomplish this. 

The Majority of Younger Americans Don’t Have Enough Savings 

While Baby Boomers have been more successful at saving money over the years, their children — Gen X and Millennials — tend to struggle the most. A recent survey found that over 58% of Millennials (those born between 1980 and 1996) have less than $10,000 in savings at any given time.

Insufficient savings impacts everything from paying back student loans to eventually paying for a home or a car. 

We Spend A Lot On Food

Yes, you can place food in the “needs” category of your monthly budget. But one of the most critical financial facts is that it can too often creep over into your “wants” expenditures.

About 11% of people say they spend the most on food and eating out each month, while the average American family says they spend about $610 a month on food-related items.

Families say that about $5,000 goes to groceries, but dining out each year runs them $2,400. That fact makes cutting back on eating out one of the best ways to trim your overall spending while adding more to your savings.

Another one of the most head-shaking financial facts: Each year, people in the U.S. spend $117 billion on fast food alone. 

Other Financial Facts That May Blow Your Mind (And Get You To Rethink Spending Habits) 

• The average person spends about $998 on annual holiday items that they deem “essential,” such as gifts, food, décor, and shipping. 
• Healthcare costs mostly go toward insurance. A full 71% covers it.
• When people borrow for holiday spending, 56% goes toward credit cards.
• For individuals with savings between $1,000 and $15,000, 52% say they still live paycheck to paycheck.

One Of The Biggest Financial Facts: An Online Installment Loan Can Help With Emergencies

Ever had to pay an unexpected hospital bill during the holidays? How about covering a much-needed car or home repair? When financial emergencies strike, an online installment loan provides an option for relief.

With a short-term online installment loan from Delaware Title Loans, Inc., you may qualify for up to $1,500 in cash.

It often takes as little as 30 minutes to qualify. Just fill out the loan form on our homepage, and one of our representatives will call you to discuss the next steps. Once your quality, you will get the cash you need as soon as that same day or the following business day. It’s that easy!

Get Started Today

If the above financial facts get you thinking more carefully about spending, online installment loans can help you think outside the box when covering a financial emergency.

To get started, fill out the online form, give us a call, or visit a Delaware Title Loans, Inc. location near you.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.