American Savings Rate
Saving has been an issue in most of the Americans as well as other individuals in some countries but most of them find it hard to save. According to research, there are few reasons why most of Americans can’t save enough money for the future. One of the reasons is their lifestyle wherein based from studies, a lot of Americans increase their expenses against the income that they have. So, when financial problem occurs they can’t easily give up the lifestyle that they are used to. Another thing that affects the savings of Americans is they are fond of using credit cards that usually let them spend more than what they earn daily. Proper usage of credit cards is a must in order to control your expenses.
During the past years, the percentage on how Americans save is much higher compare these days. The highest percentage of their savings was recorded around 1940 but it continues to drop as the years pass. Today, the percentage on how Americans save drops to 6% which is far from the 26% savings that they acquire in 1940s. If we are going to convert the 6% savings, American savings rate would fall to 2,400 dollars. The computation is based from a median household income wherein most of them earn an approximately $50,000 a month excluded are the deductions such as tax and other bills. There are about 41% of the Americans that often save but there are more than 43% of them that spend more than what they earn.
The American saving rate of 2,400 dollars will depend on how a family or an individual manage its income. If that person is responsible on every cent that it spends its saving rate will surely increase. If we are to compare the percentage on how Americans saves, America will fall on the lowest rank. China’s as one of the richest country ranked the highest wherein its percentage is 30%, next is Switzerland with 14%, and Germany saves 13%.
With our economy still on the tough situation, many Americans find it hard to save. Although there are some who manages to get up from crisis, there are a lot that still undergo sacrifices. In order to have a better future, start saving and learn to control yourself from spending money to things that are not important in your life. Americans should start spending wisely and when they learn how to manage their income, they’ll surely save more.
Although America has been through a lot of difficulties on the past years wherein there are even instances where their saving rate falls to zero, they manage to get up and improve it. If they will continue to work together, the 2,400 saving rate that they are currently saving will surely increase. Based on statistics, the 6% is already an improved percentage compared to previous years so it is possible that it will continue to increase if the government along with its citizens will work together to achieve their goals.