The View from Chicago: 1,000 residents share their perspectives on the local economy, managing wealth and life in Chicagoland

September 2015

Charles Schwab 1

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.

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The Chicago Economy

Charles Schwab

22%

30%

25%

23%

Becoming more

prosperous

Staying about the

same

Becoming less

prosperous

Cannot say

Becoming more

prosperous/

staying the same

(NET) = 48%

In the United

States

13%

17%

38%

32%

13%

30%

38%

19%

3

Only 1 in 5 say Chicago’s economy is becoming more prosperous

Q7 How do you view the economy in each of the following areas? (Base: All Chicagoans=1,002)

View of the economy

All Chicagoans

Becoming more

prosperous/

staying the same

(NET) = 70%

Becoming more

prosperous/

staying the same

(NET) = 57%

In my specific

area/neighborhood

In the Chicago area

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Better

17%

Same

51%

Worse

32%

4

About half of Chicagoans think Chicago’s economy is performing the same as the US economy overall; nearly a third think it’s worse

Chicago economy compared to US economy overall All Chicagoans

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

Especially among:

• Younger (23% among Millennials vs.

Gen X 17%, Boomers 13%, and

Matures 9%)

2015 vs

2014

Better +4

About the same -3

Worse -1

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86%

85%

84%

84%

56%

55%

47%

35%

27%

19%

14%

15%

16%

16%

44%

45%

53%

65%

73%

81%

NA

-1

NA

=

+5

+13

+2

+1

+4

-1

5

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

Q11 Please indicate your level of agreement or disagreement with each of the statements below. (Base: All Chicagoans = 1,002)

Difference vs 2014

Chicago is a global business hub

Crime is hurting the Chicago economy

Government debt is hurting economic growth

in the Chicago area

Chicago needs to invest in its infrastructure

(roads, highways, bridges, railways

I feel good about the property values in my neighborhood

There are plenty of job opportunities in the Chicago area

Children can get a good education in the

Chicago public schools

Overall cost of living in the Chicago area is reasonable

Local politicians in the Chicago area are doing a good job

making the economy stronger

Tax rates in the Chicago area are reasonable

NA

+1

NA

=

-5

-13

-2

-1

-4

+1

Disagree Agree

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85%

80%

50%

46%

32%

26%

25%

21%

18%

14%

12%

7%

7%

3%

4%

8%

12%

28%

34%

28%

29%

32%

52%

56%

69%

75%

+1

-3

NA

NA

+5

+3

+8

+8

+6

+4

+4

+3

+2

=

=

NA

NA

-3

=

-1

-10

-5

=

=

-8

+2

How Chicago compares to other US Metropolitan Areas All Chicagoans

13%

6

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

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)

One of the Worst

Food and dining

Arts and culture

Technology industry

Infrastructure: roads, highways, bridges, railways

Housing market

Employment rate

Weather, overall

Cost of living

Local government effectiveness

Tax rates

Crime rate

Neither

One of the Best

nor One of the Worst

Quality education

Quality of life

12%

16%

42%

42%

40%

40%

47%

50%

50%

34%

32%

24%

18%

One of the Best

Difference vs 2014

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How Chicago is graded All Chicagoans

44%

35%

26%

23%

22%

21%

13%

12%

11%

7%

7%

32%

33%

38%

34%

37%

33%

31%

32%

26%

20%

20%

18%

23%

26%

29%

29%

28%

34%

35%

34%

31%

39%

3%

6%

6%

9%

9%

12%

14%

13%

17%

21%

22%

3%

3%

4%

5%

3%

6%

8%

8%

12%

21%

12%

A place for international tourists

A place that welcomes diversity

A place for young professionals

A place that is “business friendly” for large companies located here

A place for innovation

A place for entrepreneurs – those seeking to start and own a

business in the area

A place to raise a family

A place for the middle class

A place where a child can receive a good education

A place to spend your retirement years

A place where recent graduates can afford to live

A B C D FExcellent Fail

7

Chicago gets high marks as a place for international tourism, welcoming diversity and young professionals

Q12 How would you grade the greater Chicago area on each of the following? (Base: All Chicagoans = 1,002)

Chicago is a place…

Grade

76% NA

68% +1

64% -1

57% +5

59% +4

54% +5

44% +4

44% +1

37% +3

27% +9

27% NA

AB (Net) 2015 Vs. 2014

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13% 85%

85%

80%

78%

68%

63%

60%

49%

45%

45%

41%

31%

30%

15%

15%

20%

22%

32%

37%

40%

51%

55%

55%

59%

69%

70%

Characteristics of Chicago Believed by Chicagoans or Out of Towners All Chicagoans

Chicagoan beliefs

8

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

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

Outsiders’ beliefs

Theaters, operas, museums

Diehard sports fans

Outstanding architecture

Hot dogs and pizza

Tourist destination

A convention town

Unbearable winters

A booming tech scene

Growing economy

A thriving local economy

Commitment to clean energy

High quality of life at a reasonable cost

Affordable real estate

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Personal Finances in Chicago

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19%

39%

26%

16%

13%

25%

44%

18% Very confident

Somewhat

confident

Not very

confident

Not at all

confident

10

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

Q18 How confident do you feel that you will be able to reach your main financial goals? Q19 Would you say that living in Chicago helps or hurts your ability to reach your financial goals? (Base: All Chicagoans = 1,002)

Effect of living in Chicago on ability to reach financial goals All Chicagoans

It hurts – the overall cost of

living is just too high

It helps – living in Chicago

area provides me with the

opportunity to be

financially successful

Living in the

Chicago area

doesn’t affect my

ability to reach my

financial goals one

way or another

Uncertain

Not very/at

all confident

(net) = 38%

Especially among:

• Younger (28%

among Millennials

vs. 17% among

GenX, 15% among

Boomers and 6%

among Matures)

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65%

37%

32%

32%

29%

23%

19%

16%

6%

8%

Retirement

Medical expenses

Home repairs or improvements

Children's education

Buying a first home or new home (primary residence)

Taking a vacation in the United States

Taking a vacation outside the United States

Starting a business

Buying a vacation home

Other

11

Retirement is, by far, Chicagoans’ most important savings priority, followed by medical expenses, home repairs and children’s education

Top Three Savings Priorities All Chicagoans

Q22 Which of the following are your top three savings priorities? (Base: All Chicagoans = 1,002 )

• Older Chicagoans more often

than younger are saving for

retirement, medical expenses

and home repairs.

• Younger more often than older

are saving for children’s

education and buying a home.

• See Focus On Section for

specific details.

Charles Schwab

13%

12

According to Chicagoans, a net worth of $660K and annual net income of $187K is needed to be financially comfortable

Q13 At what level of personal net worth would you say a person in the Chicago area could be considered financially comfortable? Q15 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)

Net worth that would make a person financially comfortable All Chicagoans

6%

27%

27%

24%

11%

5% $2.5M +

$750K to <$2.5M

$250K to <$750K

$100K to <$250K

<$100K

Prefer not to say4%

29%

18%

22%

14%

13% $250K +

$150K to <$250K

$100K to <$150K

$75K to <$100K

<$75K

Prefer not to say

Average = $660K Average = $187.1K

Net income that would make a person financially comfortable All Chicagoans

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13%

13

But to be wealthy in Chicago, you need a net worth of $2.5M and annual net income of $725K

Q14 At what level of personal net worth would you say a person in the Chicago area could be considered wealthy? Q16 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)

Net worth that would make a person wealthy All Chicagoans

6%

6%

8%

25%

28%

28%

$2.5M +

$750K to <$2.5M

$250K to <$750K

$100K to <$250K

<$100K

Prefer not to say 5%

10%

25%

20%

19%

21% $1M +

$500K to <$1M

$250K to <$500K

$100K to <$250K

<$100K

Prefer not to say

Average = $2.5M Average = $724.6K

Net income that would make a person wealthy All Chicagoans

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I am not building wealth

14

Less than a third of Chicagoans are currently saving and investing, and more than a third are not building wealth

Q17 How would you describe your approach to building wealth? (Base: All Chicagoans = 1,002)

I’m more of an investor –

invest my money in stocks,

funds, bonds, etc.

Approach to building wealth All Chicagoans

I am committed to both

I’m more of an saver – put my

money into a savings account

and don’t invest it 23%

10%

32%

35%

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Only one in five Chicagoans has a financial plan in writing

Q23 Do you currently have a financial plan? (Base: All Chicagoans = 1,002)

Have a plan

in writing

20%

Have a plan

but not

written

40%

Don't have a

plan

40%

Have a financial plan All Chicagoans

Have a financial

plan (NET) = 60%

Especially among:

• Men (65% have a plan vs. 55%

among Women).

• Employed (65% vs. 50% Not

employed)

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Life in Chicagoland

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20%

22%

32%

26%

Years lived in Chicago

More than 30

years

16-30 years

5-15 Years

<5 years

Mean = 20.8 years

Yes

74%

No

26%

How long lived in Chicago Among those not living in Chicago for whole life

17

Most Chicagoans are lifelong residents; newcomers have lived in Chicago for more than 20 years

Lived in Chicago for whole life All Chicagoans

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

40%

4% 6%

6%

7%

9%

12%

16% Naperville

Lincoln Park

The Loop

River North

Schaumburg

Lakeview

Evanston

Other

13%

18

Naperville and Lincoln Park are the most desired areas to live in, but most say their preferred neighborhood is too expensive

Q9 If money were no object, where in the Chicago area would you like to live? Q10 What is preventing you from living in [RESPONSE FROM Q9]? (Base: All Chicagoans=1,002)

Reasons Not Living in Preferred Chicago Area All Chicagoans

Area of Chicago Would Like to Live (if Money Were No Object) All Chicagoans

65%

20%

16%

13%

4%

3%

4%

15%

It's too expensive

It's too far from work

The real estate options do not meet

my needs

It's too far away from family

members / friends

There's too much crime in the area

The schools in that area are not

high quality

Other

Nothing - I currently live there

Especially among:

• Younger: (31% among

Millennials vs. Gen X

17%, Boomers 18%,

and Matures 0%)

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12%

32%

56%

Own home

Rent home

Have other

arrangement

13%

19

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

Q25 Do you currently... (Base: All Chicagoans=1,002) Q25 Approximately what percentage of your income do you spend on your mortgage or your rent? (Base: Those who own or rent = 882) Q27 What are your housing plans over the next 5 years or so? (Base: Those who rent = 319)

Home ownership All Chicagoans

Average percent of

income spent on

mortgage or rent

Among owners and

renters = 31%

Housing plans over next 5 years:

Among renters

Especially among:

• Millennials (45%) and

Gen X (33%) vs 24%

Boomers and 18%

Matures)

Vs

2014

Own -6

Rent +6

Other arrangement =

40%

29%

31%

Purchase a home

Continue to rent

Uncertain

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8% 3% 2%

24%

29%

34%

24%

35%

3%

26%

12%

Where expect to live in retirement years Among those planning to live in a different area

20

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

Q4 When you think about retirement, what are your plans for where you will live? (Base: Employed Chicagoans = 627) Q5 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)

Move to different Chicago

neighborhood

Stay in same

Chicago

neighborhood

Undecided; still

weighing options

Move

outside

the Chicago

area

Midwest = significantly

more than in 2014 (15%)

South

West

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)

Don’t plan to retire

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Survey Demographics

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Demographics

All Chicagoans

2015 (n=1002)

2014 (n=1000)

Gender*

Male 50% 50%

Female 50% 50%

Generation

Millennials (21-33) 26% 27%

Gen X (34-49) 31% 31%

Boomers (50-68) 37% 36%

Matures (Over 68) 6% 6%

Mean age 46 45

Location*

Cook County 60% 60%

Contiguous to Cook County

33% 33%

Non-contiguous to Cook County

6% 7%

City of Chicago 31% 30%

Education

High school grad or less 18% 16%

Trade or technical school 4% 4%

Some college 27% 27%

College grad 37% 37%

Post grad 13% 15%

Prefer not to answer 1% 1%

All Chicagoans

2015 (n=1002)

2014 (n=1000)

Marital Status

Married/living with partner (Net)

54% 56%

Married 45% 49%

Living with partner 9% 7%

Single 30% 29%

Separated, divorced, widowed 15% 14%

Prefer not to answer 1% 1%

Children

Have children (Net) 58% 57%

Under age 18 25% 25%

Over age 18 26% 27%

Both over and under age 18 7% 5%

No children 42% 43%

Racial Background

White/Caucasian 70% 74%

African American/Black 19% 15%

Asian 6% 6%

Other 6% 3%

Prefer not to answer 2% 2%

Hispanic/Latino Background

Yes 9% 10%

No 91% 90%

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Demographics

All Chicagoans

2015 (n=1002)

2014 (n=1000)

Employment Status

Employed (Net) 63% 64%

Full-time 50% 48%

Part-time 13% 16%

Unemployed, looking for work

12% 10%

Homemaker or student, not looking for work

9% 9%

Retired, semi-retired 16% 17%

Industry Working in (among employed)

Education or health 18% 19%

Professional or business services

17% 18%

Financial services 8% 5%

Manufacturing 7% 10%

Information services 7% 7%

Transportation or utilities 4% 4%

Government 5% 3%

Construction 4% 5%

Leisure or hospitality 4% 4%

Farming, mining or logging

0% 1%

Other 26% 24%

All Chicagoans

2015 (n=1002)

2014 (n=1000)

Household Income

<$25K 14% 13%

$25K to $49.9K 23% 23%

$50K to $74.9K 23% 22%

$75K to $99.9K 15% 14%

$100K or more 16% 23%

Prefer not to answer 9% 5%

Mean $68.5K $76.3K

Total Assets

<$25K 31% 29%

$25K to $99.9K 20% 19%

$100K to $249.9K 11% 12%

$250K to $499.9K 10% 10%

$500K or more 8% 13%

Prefer not to answer 20% 16%

Mean $217.1K $301.3K

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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.

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