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The weak economy is making most young adults more financially conservative, according to a new report by investment firm Charles Schwab Corp. In a survey of 1,252 adults between the ages of 23 and 28 conducted on behalf of Schwab in January, 71% of respondents said they were very concerned about the economy, and 53% said they were equally worried about their personal financial future. As a result, 62% of respondents said they eat out less often, 73% shop "for fun" less often, 52% are saving more and 47% are modifying vacation plans. Even so, the average non-mortgage debt carried by survey respondents was $14,020. This is the first year Schwab has polled this age group, according to a spokesperson. Only 33% of respondents with credit cards said they pay off their entire card balances each month. Forty-five percent said they pay "more than the minimum but less than the total balance," 13% pay only the minimum required each month and 9% only pay what they can. Sixty-two percent of respondents said they have credit cards and 79% have debit cards. When asked how prepared they feel to make good financial choices, 32% of respondents said they feel well prepared and 52% said they feel adequately prepared to live within their means. Twenty-five percent said they feel well prepared to use debt wisely, 47% said they feel adequately prepared and the remaining 28% said they feel poorly prepared to do so. Thirty-two percent of respondents said they wished they had learned more about how to use credit cards wisely before they entered the workplace, 45% said they wish they had learned more about living within a budget and 42% said they wish they had learned more about the importance of saving.
