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The Incredible Shrinking Savings Rate

America Saves Week: Feb. 25-March 2 THE INCREDIBLE SHRINKING SAVINGS RATE How Americans' personal savings have dwindled- and what you can do to help reverse it. SAVINGS THROUGH THE DECADES... Average U.S. personal savings rate 9.6% 2005: 8.6%) The rate was 1.6%-the lowest of the decade 5.5%) 3.3% %24 %24 %24 1970-1979 1980-1989 1990-1999 2000-2009 The "Me" decade saw a At the end of this decade, The 1970s held plenty of economic turmoil, The downward trend downward shift in became almost a free savings, yet the personal savings rate remained above 8%. fall. By decade's end, the personal savings rate fell a significant 3 percentage points. average savings dropped to roughly one-third that of the 1970s. The personal savings rates of 2008 and 2009 were but this didn't stop Americans from saving nearly 10% of their income. well above the decade's average, meaning rates were even lower before the economic crisis hit. The average rate has grown to 4.4% However, year by year the rate is slipping again... SINCE 2010... Average U.S. personal savings rate 5.1% 4.2% 3.9% 2010 2011 2012 A bigger drop is predicted in 2013 New figures project an average 2013 savings rate of 2.7%, which trails projections for most other industrialized nations: 16% Projected 2013 average personal savings rate France 12,8% Switzerland 10.8% Sweden 10% Germany Australia 8.7% Spain 7.7% United Kingdom 4.3% Canada 3.6% United States ** 2.7% Japan 1.9% Italy 1.6% ARE LOW INTEREST RATES TO BLAME? 10%5.A%3.3%-0.3 Average 6-month U.S. CD rate 1980s 1990s 2000s Jan.2013 When rates are low... You must save more to meet your savings goal. Low personal savings rates a worst-of-both-worlds scenario for American Low interest rates savings STRENGTHEN YOUR SAVINGS IN 4 STEPS Until you have a budget that identifies how much DEFINE how much you extra money you can set aside each month, it's impossible to know whether you're meeting your can save savings potential. 2. Setting automatic, recurring transfers is a simple way to make AUTOMATE your savings plan sure that your money goes to your savings account without fail. 3. Your savings aren't safe until you've plugged the MONITOR leaks in your checking account-including those your statements resulting from overdraft and ATM fees. 4. Rates may be low overall right now, but some offer several times CHECK the interest of others. Review your savings accounts regularly to your rates make sure you're getting a competitive yield. Created for © QuinStreet, Inc., 2013 M MoneyRates Make the most of your money Sources Research

The Incredible Shrinking Savings Rate

shared by Cyue on Feb 22
The U.S. personal savings rate has declined steadily over the last four decades. It hit historic lows in the years before the Great Recession -- an unfortunate trend to proceed the worst economic cris...




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