Is your financial health at risk? "It's never to soon to become an effective money manager and improve your financial well-being.

• Author: Weintraub, Allen
• Position: Economics

AMERICANS ARE LIVING in a financial fantasy. They are extremely confident that they will be able to live life as they choose in the future, even though they have saved very little to date and have no clear financial plan in place.

A survey of financial behaviors, "Money Maladies" reveals a widening disconnect between what Americans think they are doing for their future and what they are actually doing. Commissioned by Northwestern Mutual Financial Network and conducted by Harris Interactive, it found that eight out of 10 Americans are comfortable with their level of financial planning when, in reality, one-third have not even begun to plan or save and one-fourth doesn't know how much they have saved.

The survey brought to light a series of chronic misbehaviors or money maladies that are preventing people from establishing good spending, saving, and investing habits. In effect, many families today are living in a vulnerable state with little or no safety net for emergencies or major future expenses.

As a case in point, when it comes to retirement, many individuals aren't doing as much as they could to prepare. This is especially alarming because more are retiring earlier and living longer. The average age at which Americans expect to retire is 61, with younger individuals hoping to retire even earlier. On average, they anticipate living to 83 years, which leaves 22 years in retirement. Here is the problem: Just four out of 10 workers get a pension with a median amount over $6,000. Social Security payments average $815 per month. With fewer earning years and more retirement years, Americans' lack of savings could be sabotaging retirement.

Another shortfall is saving for children's college education. The survey found that nearly half of all parents with offspring under the age of 18 have not yet started putting money aside on a regular basis for their child's college education. Among those who are not yet planning, 35% do not plan at all to save for their kids' college education; an additional 25% are not sure when they will start; and 20% don't plan to start saving until their child is at least 11 years old. Ironically, 80% of parents still worry "a lot" about having enough money for their offspring's education.

The survey found some interesting demographic differences between men and women. For starters, women are nearly twice as likely as men to be unsure of what their savings stares will be upon retirement. In addition, women report that they have...