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”
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% |
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.
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.
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% |
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.