Survey: 69% of Americans Have Less Than $1,000 in Savings

[cfives]

Hard to reconcile articles that state that the majority of Americans are only $400-$1000 away from financial ruin, with other articles that say that the average American has $5k+ in credit card debt, or a third of their credit limit among 3-4 cards.

 

[Blankpage]

No way should that number be as high as 69%. The blame for that falls on the indivdual for a large chuck of them. Sure some are dealing with low wages, divorce, medical issues, student loans... but not 70% of the population.

I'd like to see a comparison between the US saving rate and that of every other developed nation.

 

[mercurial]

lol a raise would help? I bet if half these folks stopped door dashing, eating out, enjoying lattes at a coffee bar and wearing/owning the last cool shit they would have money.

yea it would be a huge help, because they definitely won't become like the next person in the rung above them, who also only has $1000 in savings

 

[msethhunter]

I have a feeling that this isn't as much about being poor as it is about living within your means. We are a nation of excess. Buying that new car every few years, getting that new phone, having a 60" tv, the latest and greatest of everything is the American way.

Stop that shit! Quit looking for the BBD (Bigger Better Deal), and be happy with what you have. Quit lusting after what you want.

 

[Removed 3]

No way should that number be as high as 69%. The blame for that falls on the indivdual for a large chuck of them. Sure some are dealing with low wages, divorce, medical issues, student loans... but not 70% of the population.
.

Yeah, it's almost implausible. Like, you go to work today, would you accept that more than half don't have $1000 saved up? For kids right out of college, ok, but across the board in all age groups? Kinda hard to believe

 

[Removed 3]

Hard to reconcile articles that state that the majority of Americans are only $400-$1000 away from financial ruin, with other articles that say that the average American has $5k+ in credit card debt, or a third of their credit limit among 3-4 cards.

The banks have no recourse to collect cc debt you know. They eventually write it off

 

[GAJ]

70% of the population having no savings is evidence of serious systemic issues in our economy, not the result of people buying phones. The human brain hasn't changed in the last 50 years making people unable to save, the middle of the economy has been systematically hollowed out in ways that lead to massive disparities in wealth.

On a side note, my iphone cost $50, brand new, unlocked and no contract. Not exactly a "luxury item"

Yes, when we were whippersnappers AFM and I saved more!

https://tradingeconomics.com/united-states/personal-savings

Personal Savings in the United States averaged 8.82 percent from 1959 until 2019, reaching an all time high of 17.30 percent in May of 1975 and a record low of 2.20 percent in July of 2005.

 

[GAJ]

I have a feeling that this isn't as much about being poor as it is about living within your means. We are a nation of excess. Buying that new car every few years, getting that new phone, having a 60" tv, the latest and greatest of everything is the American way.

Stop that shit! Quit looking for the BBD (Bigger Better Deal), and be happy with what you have. Quit lusting after what you want.

I'm 63 and have owned three personal cars in that time, my current one is a 1994 I bought new.

Every year I get a letter from the Bay Area Air Quality Management District saying, "are you sure you don't want $1000 so we can crush it?"

 

[Kewl Breeze]

I know survey sites state 1000 people surveyed is enough to get a 3% margin of error for a national sample but I'm skeptical it can be very accurate. Since this particular survey surveyed 846 Americans, assuming those surveyed where random and from different regions (it was not mentioned), seems like it could get different results each time you do a survey depending on how many higher paid professionals with more savings end up in the survey each time. Not saying the results are right or wrong but I've read other recent articles that show a higher figure than $1000 especially when the survey was broken down by age.

 

[gnahc79]

There's a decent percentage of people living in poverty/poor and are just trying to put food on the table, keep the lights on etc etc. The census says the poverty rate is 11.8% for 2018. This handy chart lines up with that number as well.
https://www.statista.com/statistics/203183/percentage-distribution-of-household-income-in-the-us/
Let's assume household incomes up to $50K cannot save $1K cash, IMO that's generous for outside the bay area at $50K. That's 27.9% of the population. The remaining 72.1% should all be able to have $1K in cash for emergencies. Even if you're some young person buried in student debt.


this video on real poverty (not just I can't buy avocados anymore 'poor') is informative as well
[youtube]aLwRZibUqL0[/youtube]

 

[Archimedes]

Hmmm.

Of course you could just look at the statistics... 2019 was a record year for car sales in the U.S. and smartphone sales are also through the roof. So not so much an anecdote.

American's don't have a saving problem, they have a spending problem.

 

[Yakoo752]

It's probably because everyone's money is tied up in the stock market seeing as to how well it has been doing...

 

[byke]

Just curious on what's probably pretty obvious, but I assume those car sales numbers are per capita?

 

[afm199]

Of course you could just look at the statistics... 2019 was a record year for car sales in the U.S. and smartphone sales are also through the roof. So not so much an anecdote.

American's don't have a saving problem, they have a spending problem.

I don't actually believe this. But I do. I've worked with too many young people who have to spend money on items that I consider luxuries.

Yes, the economy is not rigged in favor of the working man. Yes, if you decide to buy coffee and lunch every day you really should actually calculate the outcome of what that really costs. Unfortunately, the spending that needs to be trimmed is the ordinary day to day, the turning the lights off, driving slower to get better gas mileage, keeping tires inflated, never using a credit card without paying it off, and never owning a credit card that charges fees. Understanding that those flight miles you get aren't really money, they just mean you're going to spend more money.

In other words, the deck is rigged, don't worsen it.

 

[Yakoo752]

Just curious on what's probably pretty obvious, but I assume those car sales numbers are per capita?

no - it's strictly $

from a unit perspective there was an across the board decline

 

[jdhu]

I don't actually believe this. But I do. I've worked with too many young people who have to spend money on items that I consider luxuries.

Yes, the economy is not rigged in favor of the working man. Yes, if you decide to buy coffee and lunch every day you really should actually calculate the outcome of what that really costs. Unfortunately, the spending that needs to be trimmed is the ordinary day to day, the turning the lights off, driving slower to get better gas mileage, keeping tires inflated, never using a credit card without paying it off, and never owning a credit card that charges fees. Understanding that those flight miles you get aren't really money, they just mean you're going to spend more money.

In other words, the deck is rigged, don't worsen it.

Pretty much agree. Inequality is absolutely a worsening issue.

But, people (not just the young) often make poor decisions, from financing things like new phones to choosing college major poorly. Sure, anecdote, but I hear friends and others say, in passing, that they are going to "sacrifice" this year by not purchasing the next iPhone, etc. (because their iPhone 8 plus is just so outdated). People with income of say, $40,000 with two cars, four large TVs, etc.

Anyway, feel for them on some level, it must suck to worry constantly about money. At the same time, a lot of people make a lot of dumb choices.

 

[gnahc79]

speaking of dumb choices
[youtube]n1b7piSmmME[/youtube]

These videos are pretty cool

 

[SFSV650]

So sick of hearing about how poor everyone is when all I see are new cars on the road and $1,000 cell phones in the hands of just about every, man, woman and child in the U.S.

If all you see are new cars, then either you might just have a huge availability bias or live in a bubble. I see a lot of bumpers held on with zip ties, and I see a lot of people walking or taking the bus.

 

[SFSV650]

Those lazy bums could do it if they skipped coffee and any other modern comfort for 3 years. If you don’t look absolutely destitute, then I don’t believe you are financially struggling. And if you do, I will blame it on your poor life choices.

Like me, I’m on a fixed income. I have to budget my IRA, my pension, my 401k, my rental incomes on the properties I bought for less than a new commuter car costs today, and my social security. I only went on one trip to Hawaii in the last quarter and the touring bike I bought last week was an unsold 2019 model. These whiny melenals don’t know the meaning of sacrifice. I worked part time all summer to pay for my own college and then put in 25 years at my union job and retired at 55 but I hated paying dues so I voted for anyone willing to break up hose useless vampire orgs.

I like you.

I recently discovered that one of the most fun tools to have on hand when talking to boomers is an inflation calculator.

 

[afm199]

I like you.

I recently discovered that one of the most fun tools to have on hand when talking to boomers is an inflation calculator.

Because excuses always trump reality.