U.S. household debt has finally fallen back to pre-recession levels. So, we’ve finally learned our lesson about spending …
savings rate
Americans Saved Less Money Last Month
In September, consumers spent more but made less than expected. As a result, the national savings rate dropped to 3.6%, which is the lowest level it has been since the beginning of the recession. And that has some people nervous.
Good News: Americans Saved Less Money Last Month
In September, consumers spent more but made less than expected. As a result, the national savings rate dropped to 3.6%, which is the lowest level it’s been since the beginning of the recession. And that has some nervous. The popular economics blog Calculated Risk blog had this to say:
Spending is growing faster than incomes – and the
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Portrait of Today’s Schizophrenic Consumer
The Great Recession has made consumers reconsider purchases that were once made without much thought. Perhaps, the new thinking goes, you don’t need a new wardrobe every season or a new refrigerator every two years. Perhaps you should only make these sorts of purchases when they are truly necessary. But, speaking of necessities, don’t …
Are You Overpaying for your 401(k)?
Boston College’s Center for Retirement Research Center has a study out this month about the cost of 401(k) plans, and they have found another flaw in the nation’s defacto retirement savings system: It is overpriced. So not only do 401(k) plans not meet the needs of the average American, they aren’t cost effective either. I wrote about …
Getting paid $50,000 to raise the savings rate
In April, the personal savings rate—the percentage of disposable income that people don’t spend—went up to 3.6%. That’s higher than it was in March (3.1%), but still far lower than many economist types were predicting this time last year. Back in early 2009, there was talk that thanks to the Great Recession Americans were embarking …
America the thrifty. Well, that was short-lived
“The New Frugality,” declared the cover of Time magazine on April 27, 2009. Just kidding!
Saving’s Double-Edged Sword: Good for You, Bad for the Economy
Economists say the only way you can get your finances in better shape is to save more and spend less. Economists also say that the way to get our national economy in better shape is to have people spend more—and therefore save less. So basically, right now, we should all be spending more and saving more. Right …
