Debt.com’s writers are journalists, personal finance experts, and certified credit counselors. Their advice about money – how to make it, how to save it, and how to spend it – is based on, collectively, a century of personal finance experience. They’ve been featured in media outlets ranging from The New York Times to USA Today, from Forbes to FOX News, and from MSN to CBS.
Debt.com’s annual poll of 1,000 Americans shows debt is a major reason to start budgeting. Fortunately, the budget has been a proven solution.
For six years, Debt.com has polled Americans on their budgeting behavior. More than 8 in 10 now have a monthly budget, a number that’s been trending upward since this survey’s inception in 2018.
One of the major reasons is also the most alarming. Nearly 1 in 4 say debt “prompted them to start budgeting.” That’s shot up more than 13 percent in only five years. The budgeting seems to work for them, because nearly 9 in 10 say it’s “helped them get out or stay out of debt.”
As positive as that may sound, it also alarms Debt.com’s president Don Silvestri. He feels everyone should spend on a budget through the hard times – and the good.
“If you only create a household budget because you’re worried about debt, what happens when the worst is behind you – will you stop budgeting?” Silvestri wonders. “If that happens, you’ll stop budgeting, get back in financial trouble, then start budgeting again. Budgeting should be preventative medicine, not emergency surgery.”
The survey’s other key findings:
Nearly 9 in 10 say “everyone should budget.”
27% of those who don’t budget says it’s because they “don’t have much income.”
39% prefer creating a budget using a pen and paper.
Half say they’re living paycheck to paycheck.
Far more respondents budget now than five years ago
Nearly 1 in 4 respondents say debt is the reason they started budgeting
More than 8 in 10 say budgeting has helped them “get out or stay out of debt”
4 in 10 respondents prefer budgeting with pen and paper
Most respondents who don’t budget say it’s because they “don’t earn enough money to warrant a budget”
For full survey results, click here
Who should budget?
Percentage of respondents
Everyone
87.26%
People with a lot of debt
5.46%
People with a limited income
5.94%
People who earn a lot of money
1.34%
Do you budget?
Yes
No
Percentage of respondents
84.56%
15.44%
Why don’t you budget?
Percentage of respondents who don’t budget
It’s too time-consuming
25.47%
It makes me feel anxious/bad
23.60%
I don’t have much income
27.33%
It causes disagreements with my spouse/significant other
6.21%
I have budgeted, but it’s never helped me
17.39%
Have you been able to stay out of debt without a budget?
Yes
No
Percentage of respondents who don’t budget
56.52%
43.48%
What prompted you to start budgeting?
Percentage of respondents who budget
I want to increase my wealth/savings
38.78%
Debt
22.68%
Rising costs of living due to inflation
15.99%
Retirement
15.19%
Loss of job/income
5.78%
Divorce/loss of spouse
1.59%
How does your household feel about budgeting?
Percentage of respondents who budget
My whole household works to stay on budget.
43.31%
I’m single, financially independent, and I budget!
23.24%
I love to budget, but my significant other doesn’t.
21.77%
My significant other is on a budget, but I am not.
8.28%
I live with my parents, and I don’t use a budget because I’m saving up to live on my own.
3.40%
Have you used websites for tips on how to build a budget?
Percentage of respondents who budget
No, I never thought about it
60.09%
Yes, I have visited websites for advice other than Debt.com
24.49%
Yes, that’s why I visited Debt.com
15.42%
How do you prefer to create a budget?
Percentage of respondents who budget
Pen and paper
39.34%
Spreadsheets
29.93%
Mobile apps
20.98%
My bank/credit union’s budgeting tools
4.76%
A financial advisor
4.99%
Which method of budgeting would you be most interested in trying?
Percentage of respondents who budget
Mobile apps
42.45%
Spreadsheets
23.16%
Pen and paper
18.96%
My bank/credit union’s budgeting tools
7.95%
A financial advisor
7.49%
Has budgeting helped you get out or stay out of debt?
Yes
No
Percentage of respondents who budget
86.72%
13.28%
Have you been able to stay out of debt without a budget?
Yes
No
Percentage of respondents who don’t budget
56.52%
43.48%
Do you think dining out or ordering food should be included in a grocery budget?
Yes
No
Percentage of respondents who budget
73.44%
26.56%
Do you live paycheck to paycheck?
Yes
No
Percentage of all survey respondents
50.00%
50.00%
For full 2022 survey results, click here
Debt.com polled more than 1,000 Americans on their budgeting and spending habits. The majority say they budget their finances and it’s helped them get out and stay out of debt.
For the past five years, Debt.com has conducted its annual budgeting survey. The number of respondents who say they budget their spending and saving has increased each year.
The latest has hit an all-time high. More than 8 in 10 (86 percent) respondents track their monthly income and expenses. In 2021 and 2020, that was 80 percent. Pre-pandemic, in both 2018 and 2019, that number was roughly 70 percent.
Howard Dvorkin, CPA and chairman of Debt.com, has a hunch that world events over the past few years have motivated more Americans to keep an eye on their spending.
“It’s quite likely that both inflation and the pandemic have made Americans keen to budget,” Dvorkin says. “It’s a one-two punch.”
This year, the data is broken down by who actively uses a budget and who doesn’t.
The survey’s key findings:
One reason budgeting might be more popular is that it’s much easier. While 39 percent of respondents still use pen and paper to create their budgets, that’s much less than the 66 percent from Debt.com’s first budgeting survey in 2018. Nearly 30 percent now use either mobile apps or online tools from their bank or credit union.
Fully 85 percent of those who budget say that simple process got them out of debt or has helped keep them out of debt.
Sadly, almost a third say they don’t budget because “I don’t have much income,” and half are living paycheck to paycheck.
Who should budget?
More than 8 in 10 of those who budget say it’s helped them get out or stay out of debt
How survey respondents prefer to create a budget
Most respondents who don’t budget say they don’t earn enough to warrant a budget
Who’s living paycheck to paycheck to make ends meet
Who should budget?
Percentage of respondents
Everyone
90.24%
People with a lot of debt
3.77%
People with a limited income
5.12%
People who earn a lot of money
0.87%
Do you use a budget?
Yes
No
Percentage of respondents
85.60%
14.40%
Why don’t you budget?
Percentage of respondents who don’t budget
It’s too time-consuming
20.13%
It makes me feel anxious/bad
18.12%
I don’t have much income
31.54%
It causes disagreements with my spouse/significant other
9.40%
I have budgeted, but it’s never helped me
20.81%
Have you been able to stay out of debt without a budget?
Yes
No
Percentage of respondents who don’t budget
50.34%
49.66%
What prompted you to start budgeting?
Percentage of respondents who budget
I want to increase my wealth/savings
39.73%
Debt
22.57%
Rising costs of living due to inflation
17.16%
Retirement
11.63%
Loss of job/income
7.11%
Divorce/loss of spouse
1.81%
How does your household feel about budgeting?
Percentage of respondents who budget
My whole household works to stay on budget.
44.24%
I’m single, financially independent, and I budget!
24.38%
I love to budget, but my significant other doesn’t.
21.56%
My significant other is on a budget, but I am not.
7.90%
I live with my parents, and I don’t use a budget because I’m saving up to live on my own.
1.92%
Have you used websites for tips on how to build a budget?
Percentage of respondents who budget
No, I never thought about it
65.24%
Yes, I have visited websites for advice other than Debt.com
24.49%
Yes, that’s why I visited Debt.com
10.27%
How do you prefer to create a budget?
Percentage of respondents who budget
Pen and paper
39.16%
Spreadsheets
28.56%
Mobile apps
22.23%
My bank/credit union’s budgeting tools
6.77%
A financial advisor
3.27%
Which method of budgeting would you be most interested in trying?
Percentage of respondents who budget
Mobile apps
47.40%
Spreadsheets
19.64%
Pen and paper
18.62%
My bank/credit union’s budgeting tools
7.67%
A financial advisor
6.66%
Has budgeting helped you get out or stay out of debt?
Yes
No
Percentage of respondents who budget
84.88%
15.12%
Have you been able to stay out of debt without a budget?
Yes
No
Percentage of respondents who don’t budget
50.34%
49.66%
Do you think dining out or ordering food should be included in a grocery budget?
Yes
No
Percentage of respondents who budget
70.85%
29.15%
Do you live paycheck to paycheck?
Yes
No
Percentage of all survey respondents
49.81%
50.19%
Methodology: Debt.com surveyed more than 1,000 Americans and asked 12 questions about their budgeting and spending habits. People responded from all 50 states and Washington, DC and were aged 18 and above. Responses were collected through SurveyMonkey. Percentages were rounded up to the nearest whole number and might not total 100 percent.
For full 2021 survey results, click here
Who should budget?
2021
Everyone
88.22%
People with a limited income
6.77%
People with a lot of debt
2.26%
People who spend a lot of money
2.75%
Do you use a budget?
Yes
No
2021
80.24%
19.76%
What prompted you to start budgeting?
2021
I want to increase my wealth/savings
37.63%
Debt
31.57%
Retirement
16.41%
Loss of job/income
8.96%
Divorce/loss of spouse
5.43%
How does your household feel about budgeting?
2021
My whole household works to stay on budget.
40.36%
I’m single, financially independent, and I budget!
36.72%
I love to budget, but my significant other doesn’t.
18.23%
My significant other is on a budget, but I am not.
2.86%
I live with my parents, and I don’t use a budget because I’m saving up to live on my own.
1.82%
Why don’t you budget?
2021
I don’t earn enough income
34.01%
It’s too time consuming
20.30%
It makes me feel anxious/bad.
19.80%
I have budgeted, but it’s never helped me.
19.29%
It causes disagreements with my spouse.
6.60%
Have you used websites for tips on how to build a budget?
2021
No, I never thought about it
49.10%
Yes, this is one of the reasons why I visited Debt.com
29.19%
Yes, I have visited sites other than Debt.com.
21.71%
How do you prefer to create a budget?
2021
Pen and paper
61.38%
Spreadsheets
17.21%
Mobile apps
9.76%
My bank/credit union’s budgeting tools
7.86%
A financial advisor
3.79%
Which method of budgeting would you be most interested in trying?
2021
None – I’m not interested in budgeting
25.67%
Pen and paper
23.53%
Mobile apps
25.13%
Spreadsheets
12.30%
My bank/credit union’s budgeting tools
8.02%
A financial advisor
5.35%
Has budgeting helped you get out or stay out of debt?
Yes
No
2021
87.77%
12.23%
Have you been able to stay out of debt without a budget?
Yes
No
2021
50.27%
49.73%
When I shop for groceries…
2021
I shop with a list, stick to my budget, AND use coupons
46.92%
I shop with a list and stick to my budget
27.22%
I shop without a list, but control my spending
20.11%
I walk in to buy one thing, and walk out with a cart full of stuff
3.42%
I buy whatever I want
2.33%
Do you budget for special events and holidays?
2021
Yes, I save for these events throughout the year
61.93%
No, I spend on special events without a budget.
16.14%
Yes, but I shop at the last minute and often go over budget
10.90%
No, I don’t buy gifts or celebrate special events
11.03%
Do you budget separately for special events and holidays?
2021
No, I spend on special events without a budget.
42.93%
No, I don’t buy gifts or celebrate special events.
16.30%
Yes, I save for these events throughout the year.
20.11%
Yes, but I shop at the last minute and often go over budget.
20.65%
Do you think restaurant meals should be included in a grocery budget?
Yes
No
2021
60.97%
39.03%
Do you budget for the “little things”? (For example, vending machines, gas stations, coffee shop runs, etc.)
Yes
No
2021
56.23%
43.77%
Methodology: Debt.com surveyed 1,019 people and asked 15 questions about their budgeting and spending habits. People responded from all 50 states and Washington, DC and were aged 18 and above. Responses were collected through SurveyMonkey. The survey was conducted from March 8, 2021 to April 26, 2021.
For full 2020 survey results, click here
Who should budget?
2020
Everyone
97.48%
People with a limited income
1.39%
People with a lot of debt
0.64%
People who spend a lot of money
0.49%
Do you use a budget?
Yes
No
2020
79.46%
20.54%
What prompted you to start budgeting?
2020
I want to increase my wealth/savings
42.46%
Debt
31.33%
Retirement
13.41%
Loss of job/income
9.57%
Retirement
7.56%
Divorce/loss of spouse
3.22%
How does your household feel about budgeting?
2020
My whole household works to stay on budget.
50.40%
I’m single, financially independent, and I budget!
29.49%
I love to budget, but my significant other doesn’t.
15.93%
My significant other is on a budget, but I am not.
2.18%
I live with my parents, and I don’t use a budget because I’m saving up to live on my own.
1.99%
Why don’t you budget?
2020
I don’t earn enough income
32.05%
It’s too time consuming
24.54%
It makes me feel anxious/bad.
21.43%
I have budgeted, but it’s never helped me.
16.12%
It causes disagreements with my spouse.
5.86%
Have you used websites for tips on how to build a budget?
2020
No, I never thought about it
55.12%
Yes, this is one of the reasons why I visited Debt.com
23.66%
Yes, I have visited sites other than Debt.com.
21.21%
How do you prefer to create a budget?
2020
Pen and paper
58.61%
Spreadsheets
23.47%
Mobile apps
8.39%
My bank/credit union’s budgeting tools
6.78%
A financial advisor
2.75%
Which method of budgeting would you be most interested in trying?
2020
None – I’m not interested in budgeting
28.26%
Pen and paper
27.34%
Mobile apps
22.94%
Spreadsheets
12.48%
My bank/credit union’s budgeting tools
5.69%
A financial advisor
3.30%
Has budgeting helped you get out or stay out of debt?
Yes
No
2020
85.63%
14.37%
Have you been able to stay out of debt without a budget?
Yes
No
2020
51.56%
48.44%
When I shop for groceries…
2020
I shop with a list, stick to my budget, AND use coupons
46.70%
I shop with a list and stick to my budget
27.26%
I shop without a list, but control my spending
19.11%
I walk in to buy one thing, and walk out with a cart full of stuff
4.08%
I buy whatever I want
2.84%
Do you budget for special events and holidays?
2020
Yes, I save for these events throughout the year
59.93%
No, I spend on special events without a budget.
15.88%
Yes, but I shop at the last minute and often go over budget
13.23%
No, I don’t buy gifts or celebrate special events
10.95%
Do you budget separately for special events and holidays?
2020
No, I spend on special events without a budget.
52.48%
No, I don’t buy gifts or celebrate special events.
17.61%
Yes, I save for these events throughout the year.
16.70%
Yes, but I shop at the last minute and often go over budget.
13.21%
Do you think restaurant meals should be included in a grocery budget?
Yes
No
2020
59.32%
40.68%
Do you budget for the “little things”? (For example, vending machines, gas stations, coffee shop runs, etc.)
Yes
No
2020
57.71%
42.29%
For full 2019 and 2018 survey results, click here
Who should budget?
2019
2018
Everyone
94.45%
92.61%
People with a limited income
2.43%
3.64%
People with a lot of debt
2.08%
2.50%
People who spend a lot of money
1.04%
1.25%
Do you use a budget?
Yes
No
2019
68.69%
31.31%
2018
70.24%
29.76%
What prompted you to start budgeting?
2019
2018
Desire to manage my money better
34.43%
36.15%
I have always budgeted my money
25.22%
18.96%
Debt
13.24%
16.44%
I want to increase my wealth/savings
7.94%
9.33%
Retirement
7.44%
7.56%
Loss of job/income
7.31%
8.44%
Divorce
2.40%
1.93%
Loss of spouse
2.02%
1.19%
How do you feel about budgeting?
2019
2018
My whole household works to stay on budget
43.81%
48.15%
I’m single, financially independent and use a budget
39.65%
34.67%
I’m on a budget, but my significant other is not
13.76%
11.11%
I’m living with my parents, and budget because I’m saving to live on my own
1.39%
3.85%
My significant other is on a budget, but I’m not
1.39%
2.22%
Why don’t you budget?
2019
2018
I don’t earn enough money
39.61%
33.80%
It’s too time-consuming
21.05%
21.25%
I have budgeted, but it’s never helped me
15.51%
19.86%
I have budgeted, but only for special occasions and holidays
14.13%
16.72%
I never overspend
8.31%
7.32%
I make so much money I don’t need to budget
1.39%
1.05%
Have you used websites for tips on how to build a budget?
2019
2018
No, I never thought about it
32.78%
26.74%
Yes, this is one of the reasons why I visited Debt.com
28.01%
41.52%
I have a budget that I created on my own
22.46%
11.65%
Yes, I have visited sites other than Debt.com for advice
16.74%
20.08%
What tools do you use to budget?
2019
2018
Pen and paper
67.05%
66.22%
Spreadsheets
28.66%
32.00%
I budget in my head
25.38%
26.52%
I use my bank/credit union budgeting tools
15.28%
13.33%
Mobile apps
13.26%
16.74%
I have a financial advisor
5.43%
5.93%
I don’t budget
0.88%
0.44%
Have you ever thought about trying any of these budgeting tools/methods?
2019
2018
Pen and paper
73.65%
72.01%
Spreadsheets
32.63%
36.19%
Mobile apps
32.63%
32.46%
Budgeting tools/software provided by my bank/credit union
20.36%
18.28%
Financial advisor
14.67%
18.66%
Has budgeting helped you get out or stay out of debt?
Yes
No
2019
75.88%
24.12%
2018
72.74%
27.26%
Have you been able to stay out of debt without a budget?
Yes
No
2019
29.25%
70.75%
2018
26.67%
73.33%
When I shop for groceries…
2019
2018
I shop with a list, stick to my budget, AND use coupons
46.21%
57.33%
I shop with a list and follow in according to my budget
32.07%
23.41%
I don’t bring a list, but I control myself from overspending
14.52%
12.44%
I usually walk in wanting to buy one thing, and walk out with a cart full
4.80%
5.48%
I buy whatever I want
2.40%
1.33%
Do you budget for special events and holidays?
2019
2018
Yes, I save throughout the year so I can afford to celebrate with my loved ones
33.21%
33.63%
I rarely have the money to budget for special events or gifts because I am living paycheck to paycheck
23.11%
24.74%
I set a budget and start saving a month or two before the event
21.09%
24.74%
I usually don’t buy gifts or celebrate special events
14.14%
10.52%
I shop at the last minute and I often break my weekly/monthly budget for special events
8.46%
6.37%
Do you budget separately for special events and holidays?
2019
2018
I rarely have the money to budget for special events or gifts because I am living paycheck to paycheck
44.04%
45.10%
I usually don’t buy gifts or celebrate special events
17.73%
8.04%
Yes, I save throughout the year so I can afford to celebrate with my loved ones
14.40%
19.23%
I set a budget and start saving a month or two before the event
12.19%
12.94%
I shop at the last minute and I often break my weekly/monthly budget for special events
11.63%
14.69%
Do you separate the cost of meals at restaurants from your grocery budget?
Yes
No
2019
62.12%
37.88%
2018
57.93%
42.07%
Do you budget for the “little things”? (For example, vending machines, gas stations, coffee shop runs, etc.)
2019
2018
Yes, I put extra money aside for the “little things”
42.68%
44.74%
I probably should, but I don’t
29.04%
28.44%
No, these things cost me little money so I do not budget for them
28.28%
26.81%
Methodology: Debt.com surveyed 2,654 people and asked ten questions related to their budgeting behavior. People responded from all 50 states and Washington, DC and were aged 18 and above. Responses were collected through SurveyMonkey. The survey was conducted from Feb. 04, 2020 to Feb. 24, 2020. *In 2019 Debt.com surveyed 1,153 people using the same type of consumer-focused questions regarding budgeting utilizing SurveyMoney. And in 2018 Debt.com surveyed 961 people with the same survey tool.
Methodology: Debt.com surveyed more than 1,000 Americans and asked 12 questions about their budgeting and spending habits. People responded from all 50 states and Washington, DC and were aged 18 and above. Responses were collected through SurveyMonkey. Percentages were rounded up to the nearest whole number and might not total 100 percent.
Looking for a better, faster, easier way to budget? Debt.com has partnered with Tiller to bring you easy-to-use budgeting spreadsheets