Americans concerned about another economy, but aren't saving
Staff Writer |
Freedom from the stress of money is top of mind for people when dreaming about their future (59 percent), but many don't have ongoing savings habits according to new research from PurePoint Financial, a division of MUFG Union Bank.
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While nearly half (44 percent) of respondents impacted by the Great Recession have cited keeping a closer eye on their finances since the recession, 1 in 7 have admitted they haven't changed their savings behaviors since being impacted.
Respondents report feeling less anxious about the job market, political environment and other external factors than in 2017.
However, consumers are saving less, have worse savings habits and nearly half don't feel proud of how much they've saved.
In fact, fewer Americans are disciplined, habitual savers. Forty-one percent of respondents are saving via direct deposit, down 6 percentage points from 2017. Even more so, crash diet saving is a popular tactic, with half of millennials categorizing themselves as aggressive short-term savers.
Surprisingly, more consumers are taking savings into their own hands, with 16 percent of respondents reporting hiding cash around their homes, compared to 12 percent in 2017.
Admittingly, 73 percent of respondents are not actively looking for the best rates or places to save the money they are putting aside, possibly leaving money on the table.
As a result, respondents reported a decline in median savings balances, down to $1,500 in 2018 compared to $2,300 in 2017.
When ranking the top three most important factors in their future, respondents reported having good health (76 percent), financial savings (73 percent) and a relationship/family (68 percent) as the top three responses.
That said, respondents noted that saving is their most rewarding activity, even more than losing weight (79 percent vs. 47 percent).
But there's more work to be done with crash-diet savers; 2 in 5 respondents consider themselves as aggressive short-term savers, for things like weddings and trips, but they're not consistently saving in between. ■
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