The View from

Chicago:

1,000 residents share their perspectives

on the local economy, managing wealth
and life in Chicagoland

September 2015

Methodology

What

An online study among a sample of the general public was

conducted by Koski Research.
Koski Research is neither affiliated with, nor employed by,
Charles Schwab & Co., Inc.

When

The study was fielded July 21 July 31, 2015

Who

1,002 Chicagoans aged 21-75 completed the study.

The sample was drawn from online sample sources.
The geographical area of the sample included all the Illinois
counties in the Chicago Metropolitan Statistical Area (MSA).
Quotas were set based on population statistics for Cook
County, counties contiguous to Cook County and counties
not contiguous to Cook County.
Note: Unless noted otherwise Chicago and Chicagoans refer
to the Chicago area as defined above and the residents of
this area.

Charles Schwab

The Chicago
Economy

Charles Schwab

Only 1 in 5 say Chicagos economy is becoming more prosperous

View of the economy
All Chicagoans
19%

23%

32%
Becoming more
prosperous/
staying the same
(NET) = 70%

38%

Becoming more
prosperous/
staying the same
(NET) = 57%

25%

Becoming more
prosperous/
staying the same
(NET) = 48%

38%
30%
30%

Staying about the

same

17%
22%

13%
In my specific
area/neighborhood
Q7

13%
In the Chicago area

Becoming more
prosperous

In the United
States

Becoming less
prosperous
Cannot say

How do you view the economy in each of the following areas? (Base: All Chicagoans=1,002)
Charles Schwab

About half of Chicagoans think Chicagos economy is performing the

same as the US economy overall; nearly a third think its worse
Chicago economy compared to US economy overall
All Chicagoans
Especially among:
Younger (23% among Millennials vs.
Gen X 17%, Boomers 13%, and
Matures 9%)

Worse
32%

Better
17%

2015 vs
2014

Same
51%

Better
About the same
Worse

+4
-3
-1

Q8 If you were to compare the economy of the Chicago area to the economy of the United States overall, would you say Chicagos economy is (Base: All Chicagoans = 1,002)
Charles Schwab

Chicagoans view their city as a global business hub, and see

improvements in the job and housing markets compared to 2014;
crime seen as hurting local economy
Agreement with statements about Chicago
All Chicagoans

Agree

Difference vs 2014

Chicago is a global business hub

86%

NA

NA

14%

Crime is hurting the Chicago economy

85%

-1

+1

15%

Government debt is hurting economic growth

in the Chicago area

84%

NA

NA

16%

Chicago needs to invest in its infrastructure

(roads, highways, bridges, railways

84%

16%

I feel good about the property values in my neighborhood

56%

+5

-5

44%

There are plenty of job opportunities in the Chicago area

55%

+13

-13

45%

+2

-2

+1

-1

+4

-4

-1

+1

Children can get a good education in the

Chicago public schools

47%

Overall cost of living in the Chicago area is reasonable

35%

Local politicians in the Chicago area are doing a good job

making the economy stronger
Tax rates in the Chicago area are reasonable
Q11

Disagree

27%
19%

53%
65%
73%
81%

Please indicate your level of agreement or disagreement with each of the statements below. (Base: All Chicagoans = 1,002)
Charles Schwab

Chicagoans view their city as one of best for dining, the arts, and
tech, but one of the worst for taxes, crime and cost of living
How Chicago compares to other US Metropolitan Areas
All Chicagoans
One of the Best

One of the Worst

Difference vs 2014

Neither
One of the Best
nor One of the Worst

+1

13%=

3%

12%

-3

4%

16%

Technology industry 50%

NA

NA

Quality of life

NA

NA

+5

-3

28%

40%

Infrastructure: roads, highways, bridges, railways

26% +3

34%

40%

Housing market

25% +8

-1

28%

47%

Employment rate

21% +8

-10

29%

50%

Weather, overall 18% +6

-5

32%

50%

Cost of living 14%

+4

52%

Local government effectiveness 12%

+4

56%

Crime rate 7%

+3

-8

69%

Tax rates 7%

+2

+2

75%

Food and dining

85%

Arts and culture 80%

46%

Quality education

32%

8%
12%

42%
42%

34%
32%
24%

18%

Q6 When you think about the top large metropolitan areas in the U.S., how do you think the Chicago area compares on each of the issues listed below? For each characteristic please
indicate whether you think Chicago is One of the Best metropolitan areas or whether it is One of the Worst. (Base: All Chicagoans=1,002)
Charles Schwab

Chicago gets high marks as a place for international tourism,

welcoming diversity and young professionals
How Chicago is graded
All Chicagoans
Chicago is a place

A
Excellent

Grade
C

B
44%

A place for international tourists

23%

34%

A place for innovation

22%

37%

A place for entrepreneurs those seeking to start and own a

business in the area

21%

Q12

23%

38%

A place that is business friendly for large companies located here

26%
29%
29%

33%

AB (Net)
2015

18% 3% 3%

33%

26%

A place for young professionals

F
Fail

32%

35%

A place that welcomes diversity

28%

Vs. 2014

76%

NA

6% 3%

68%

+1

6%4%

64%

-1

9% 5%

57%

+5

9%3%

59%

+4

12% 6%

54%

+5

A place to raise a family

13%

31%

34%

14% 8%

44%

+4

A place for the middle class

12%

32%

35%

13% 8%

44%

+1

A place where a child can receive a good education

11%

37%

+3

27%

+9

27%

NA

26%

A place to spend your retirement years

7%

20%

A place where recent graduates can afford to live

7%

20%

34%

31%
39%

17%

21%
22%

12%

21%
12%

How would you grade the greater Chicago area on each of the following? (Base: All Chicagoans = 1,002)
Charles Schwab

Chicagoans know their city for its culture and diehard sports fans,
but say outsiders incorrectly believe it offers reasonable cost of
living and real estate
Characteristics of Chicago Believed by Chicagoans or Out of Towners
All Chicagoans
Chicagoan beliefs
Outsiders beliefs
Theaters, operas, museums

85%

Diehard sports fans

85%

Outstanding architecture
Hot dogs and pizza

13%

15%
15%

80%

20%

78%

22%

Tourist destination

68%

32%

A convention town

63%

37%

Unbearable winters

60%

40%

A booming tech scene

49%

51%

Growing economy

45%

55%

A thriving local economy

45%

55%

Commitment to clean energy

41%

59%

High quality of life at a reasonable cost

31%

69%

Affordable real estate

30%

70%

Q31 The Chicago area is well known for a variety of different reasons. Which of the following would you characterize as local facts, and which would you characterize as outsiders'
perspectives (i.e., images people in other parts of the country have of the Chicago area)? If you are not sure, please choose the choice that most describes your opinion. (Base: All
Chicagoans=1,0002
Charles Schwab

Personal
Finances in
Chicago

Charles Schwab

More than a third of Chicagoans are not confident they will achieve
their financial goals, and many believe living in Chicago hurts
finances more than helps
Confidence in ability to achieve
financial goals
All Chicagoans
18%

Very confident

Effect of living in Chicago on ability to reach

financial goals
All Chicagoans
It helps living in Chicago
area provides me with the
opportunity to be
financially successful

Uncertain

16%
44%

19%

Somewhat
confident

Especially among:
Younger (28%
among Millennials
vs. 17% among
GenX, 15% among
Boomers and 6%
among Matures)

26%
Not very
confident
Not very/at
all confident
(net) = 38%

25%

13%
Q18
Q19

Not at all
confident

Living in the
Chicago area
doesnt affect my
ability to reach my
financial goals one
way or another

39%
It hurts the overall cost of
living is just too high

How confident do you feel that you will be able to reach your main financial goals?
Would you say that living in Chicago helps or hurts your ability to reach your financial goals? (Base: All Chicagoans = 1,002)
Charles Schwab

10

Retirement is, by far, Chicagoans most important savings priority,

followed by medical expenses, home repairs and childrens
education
Top Three Savings Priorities
All Chicagoans
Retirement

65%

Medical expenses

37%

Home repairs or improvements

32%

Children's education

32%

Buying a first home or new home (primary residence)

29%

Taking a vacation in the United States

Q22

19%

Starting a business

Other

Older Chicagoans more often

than younger are saving for
retirement, medical expenses
and home repairs.
Younger more often than older
are saving for childrens
education and buying a home.
See Focus On Section for
specific details.

23%

Taking a vacation outside the United States

Buying a vacation home

16%
6%
8%

Which of the following are your top three savings priorities? (Base: All Chicagoans = 1,002 )
Charles Schwab

11

According to Chicagoans, a net worth of $660K and annual net

income of $187K is needed to be financially comfortable
Net worth that would make a person
financially comfortable
All Chicagoans
Average = $660K
5%
11%
24%

13%

$2.5M +

$750K to <$2.5M

$250K to <$750K

27%
$100K to <$250K

27%
6%
Q13
Q15

Net income that would make a person

financially comfortable
All Chicagoans

<$100K

Prefer not to say

Average = $187.1K

13%

$250K +

14%
$150K to <$250K

22%
$100K to <$150K

18%

29%

4%

$75K to <$100K

<$75K

Prefer not to say

At what level of personal net worth would you say a person in the Chicago area could be considered financially comfortable?
At what level of net income (personal annual salary) would you say a person in the Chicago area could be considered financially comfortable? (Base: All Chicagoans=1,002)
Charles Schwab

12

But to be wealthy in Chicago, you need a net worth of $2.5M and

annual net income of $725K
Net worth that would make a person
wealthy
All Chicagoans
Average = $2.5M

Net income that would make a person

wealthy
All Chicagoans
13%

$2.5M +

28%

Average = $724.6K
21%

$750K to <$2.5M

19%
28%

$250K to <$750K

$1M +

$500K to <$1M

$250K to <$500K

20%
$100K to <$250K

25%

$100K to <$250K

25%
<$100K

8%
6%
6%
Q14
Q16

<$100K

10%
Prefer not to say

5%

Prefer not to say

At what level of personal net worth would you say a person in the Chicago area could be considered wealthy?
At what level of net income (personal annual salary) would you say a person in the Chicago area could be considered wealthy? (Base: All Chicagoans=1,002)
Charles Schwab

13

Less than a third of Chicagoans are currently saving and investing,

and more than a third are not building wealth
Approach to building wealth
All Chicagoans

I am not building wealth

23%

Im more of an saver put my

money into a savings account
and dont invest it

35%
10%

Im more of an investor
invest my money in stocks,
funds, bonds, etc.

32%
I am committed to both

Q17

How would you describe your approach to building wealth? (Base: All Chicagoans = 1,002)
Charles Schwab

14

Only one in five Chicagoans has a financial plan in writing

Have a financial plan
All Chicagoans

Have a plan
in writing
20%
Don't have a
plan
40%

Have a financial
plan (NET) = 60%

Have a plan
but not
written
40%

Q23

Especially among:
Men (65% have a plan vs. 55%
among Women).
Employed (65% vs. 50% Not
employed)

Do you currently have a financial plan? (Base: All Chicagoans = 1,002)

Charles Schwab

15

Life in
Chicagoland

Charles Schwab

16

Most Chicagoans are lifelong residents; newcomers have lived in

Chicago for more than 20 years
Lived in Chicago for whole life
All Chicagoans

How long lived in Chicago

Among those not living in Chicago for whole life
Mean = 20.8 years

Yes
74%

No
26%

26%

More than 30
years

32%

16-30 years

22%
20%

5-15 Years

<5 years

Years lived in Chicago

Q1 Have you lived in the Chicago area all your life? (Do not count time you may have been away at school or in the armed services.) (Base: All Chicagoans = 1,002)
Q2 How many years have you lived in the Chicago area? (Base: Those not living in Chicago their whole lives = 257)
Charles Schwab

17

Naperville and Lincoln Park are the most desired areas to live in,
but most say their preferred neighborhood is too expensive
Area of Chicago Would Like to Live
(if Money Were No Object)
All Chicagoans

Reasons Not Living in Preferred Chicago

Area
All Chicagoans
13% It's too expensive

16%

12%
9%
7%
6%
6%
4%

Naperville
It's too far from work

20%

Lincoln Park

The Loop
River North
Schaumburg
Lakeview

40%

65%

The real estate options do not meet

my needs

16%

Especially among:
Younger: (31% among
Millennials vs. Gen X
17%, Boomers 18%,
and Matures 0%)

It's too far away from family

13%
members / friends
There's too much crime in the area

4%

The schools in that area are not

high quality

3%

Other

4%

Evanston
Nothing - I currently live there 15%

Other

Q9
Q10

If money were no object, where in the Chicago area would you like to live?
What is preventing you from living in [RESPONSE FROM Q9]? (Base: All Chicagoans=1,002)
Charles Schwab

18

More than half of Chicagoans own their homes; two in five renters
plan to purchase a home in the next 5 years
Home ownership
All Chicagoans
13%

Own
Rent
Other arrangement

Vs
2014
-6

+6
=

56%
Own home

Housing plans over next 5 years:

Among renters

31%

Rent home
Especially among:
Millennials (45%) and
Gen X (33%) vs 24%
Boomers and 18%
Matures)

Have other
arrangement
Q25
Q25
Q27

Average percent of
income spent on
mortgage or rent
Among owners and
renters = 31%

40%

32%
Purchase a home

12%

29%

Continue to rent
Uncertain

Do you currently... (Base: All Chicagoans=1,002)

Approximately what percentage of your income do you spend on your mortgage or your rent? (Base: Those who own or rent = 882)
What are your housing plans over the next 5 years or so? (Base: Those who rent = 319)
Charles Schwab

19

One in five employed Chicagoans plans to move out of the Chicago

area in retirement most will head South or West
Where plan to live in retirement
Among employed Chicagoans

Where expect to live in retirement years

Among those planning to live
in a different area

Dont plan to retire

Undecided; still
weighing options

34%

3%

35%

Move
outside
the Chicago
area

29%

26%
Stay in same
Chicago
neighborhood

24%

Move to different Chicago

neighborhood

West
Midwest = significantly
more than in 2014 (15%)

24%
12%

South

2%
3%
8%

Midwest
Northeast
A different country
Uncertain

Especially among:
Younger (21% among Millennials vs.
Gen X 9%, and Boomers 6%; Matures
base size too low for analysis)
Q4
Q5

When you think about retirement, what are your plans for where you will live? (Base: Employed Chicagoans = 627)
Please indicate where you expect to be living for most of your retirement years? If not sure, a guess is fine. (Base: Plan to live in different area = 161)
Charles Schwab

20

Survey
Demographics

Charles Schwab

21

Demographics
All Chicagoans

All Chicagoans
2015
(n=1002)

2014
(n=1000)

Gender*
Male

50%

50%

Female

50%

50%

Generation

Marital Status
Married/living with partner
(Net)
Married
Living with partner

2015
(n=1002)

2014
(n=1000)

54%

56%

45%

49%

9%

7%

Millennials (21-33)

26%

27%

Single

30%

29%

Gen X (34-49)

31%

31%

Separated, divorced, widowed

15%

14%

Boomers (50-68)

37%

36%

Prefer not to answer

1%

1%

Matures (Over 68)

6%

6%

Mean age

46

45

58%

57%

Under age 18

25%

25%

Location*

Cook County
Contiguous to Cook
County
Non-contiguous to Cook
County
City of Chicago

Children

Have children (Net)

60%

60%

Over age 18

26%

27%

33%

33%

Both over and under age 18

7%

5%

42%

43%

6%

7%

31%

30%

White/Caucasian

70%

74%

African American/Black

19%

15%

No children

Education

Racial Background

High school grad or less

18%

16%

Asian

6%

6%

Trade or technical school

4%

4%

Other

6%

3%

Some college

27%

27%

Prefer not to answer

2%

2%

College grad

37%

37%

Post grad

13%

15%

Yes

9%

10%

Prefer not to answer

1%

1%

No

91%

90%

Hispanic/Latino Background

Charles Schwab

22

Demographics
All Chicagoans

All Chicagoans
2015
(n=1002)

2014
(n=1000)

Full-time
Part-time
Unemployed, looking for
work

2014
(n=1000)

Household Income

Employment Status
Employed (Net)

2015
(n=1002)

63%

64%

<$25K

14%

13%

50%

48%

$25K to $49.9K

23%

23%

13%

16%

$50K to $74.9K

23%

22%

12%

10%

$75K to $99.9K

15%

14%

$100K or more

16%

23%

Prefer not to answer

9%

5%

$68.5K

$76.3K

<$25K

31%

29%

$25K to $99.9K

20%

19%

$100K to $249.9K

11%

12%

Homemaker or student,
not looking for work

9%

9%

Retired, semi-retired

16%

17%

Industry Working in
(among employed)

Mean
Total Assets

Education or health
Professional or business
services
Financial services

18%

19%

17%

18%

$250K to $499.9K

10%

10%

8%

5%

$500K or more

8%

13%

Manufacturing

7%

10%

Prefer not to answer

20%

16%

Information services

7%

7%

Mean

$217.1K

$301.3K

Transportation or utilities

4%

4%

Government

5%

3%

Construction

4%

5%

Leisure or hospitality
Farming, mining or
logging
Other

4%

4%

0%

1%

26%

24%

Charles Schwab

23

Disclosures
The Charles Schwab Corporation provides a full range of securities brokerage, banking,
money management and financial advisory services through its operating subsidiaries. Its
broker-dealer subsidiary, Charles Schwab & Co., Inc. (Schwab), member SIPC, offers
investment services and products. Its banking subsidiary, Charles Schwab Bank (member
FDIC and an equal housing lender), provides deposit and lending services.
Brokerage Products: Not FDIC Insured No Bank Guarantee May Lose Value.

(0915-6010)

Charles Schwab

24