America Saves Week is a Time to set Goals, Start Saving Automatically
CFP Board Participates as a National Partner to Encourage Savings
Washington, DC, February 22, 2011 – As many Americans have found during the economic crisis, having savings means peace of mind and financial security. But as a new survey shows, more needs to be done to encourage people to save, even if a little at a time.
“Over the last couple of years the savings rate of Americans turned positive as they reduced debt and stashed money away in response to the economic uncertainty,” said CFP Board’s Consumer Advocate Eleanor Blayney, CFP®. “Now the challenge is to keep people saving even as the economy improves.”
Blayney offered three easy ways to save as part of a financial plan:
- Save 10. Shoot for a goal of saving eight to ten percent of your net income in a traditional savings account or certificate of deposit (CD). This does not include the automatic savings to a 401K retirement plan.
- Paper, not Plastic. Paying for things with cash instead of a credit card can make you more conscious of your spending and help you set and keep your limits.
- Make saving automatic. Most banks will set up regular, automatic deposits from your checking to savings account each month, and many employers offer 401(k) plans that will automatically deduct from your paycheck – use them!
On Tuesday, the American Savings Education Council and the Consumer Federation of America released the findings of their fourth annual national survey assessing household saving. The findings reinforce the need for savings as Americans report that they are feeling less secure about their futures.
The survey found, among other things, that:
- The proportion of respondents who are "very concerned" about the impact of the current recession on their personal finances rose from 43 percent in February 2010 to 49 percent this year. (In 2009, this figure was 53 percent).
- There are indications that many Americans are trying to manage their finances more effectively despite economic challenges. Over the past year, the proportion of those with a saving plan rose from 55 to 57 percent, those saving for retirement at work rose from 49 to 54 percent, and those saving automatically outside work rose from 41 to 44 percent.
“The slow pace of the economic recovery reinforces the need for Americans to save, even if a little at a time,” said Nancy Register, associate director at the Consumer Federation of America. “Through automatic savings and a sound financial plan, we hope Americans will be able to build a nest egg and be prepared in case disaster strikes.”
CFP Board is a national partner of America Saves Week, a nationwide initiative first organized in 2007 that aims to promote personal savings, improve financial education and provide opportunities to save. In 2011, America Saves Week occurs from February 20-27. The week features more than 1000 local and national partners and is a coordinated by America Saves and the American Savings Education Council (ASEC). America Saves was originally organized by the Consumer Federation of America (CFA) over a decade ago.
Consumers have many resources they can access to learn about increasing their savings. AmericaSavesWeek.org offers a variety of ways for the everyday person to learn more about topics like net worth, retirement and debt management. And Savings Fitness: A Guide to Your Money and Your Financial Future – a joint project of the CFP Board and the U.S. Department of Labor – outlines a step-by-step process to improving your savings plan.
# # #
CFP® - The Recognized Standard of Excellence in
Personal Financial Planning