Whether it is an aspect of your retirement plan or simply a rainy day stash, having a savings account could be a vital part of your financial well-being.
Unfortunately, even though this is known in the United States, it is still not given the importance it deserves. In fact, over half of the population does not save money.
But why don’t we all know that saving is important to relieve stress from our lives and help us get prepared for retirement, don’t we do it? The truth is the answer boils down to two factors – education and opportunity.
But we want to help to understand why savings are so important and why it is so hard for Americans to do it. So if you are one of those that struggle or simply you know someone who does, then keep reading. We are sure you will get some pretty useful information.
What Percentage of Americans Don’t Save?
Savings can be something that saves you from a lot of stress and tragedy, no matter if you’re talking about what to do with this sudden emergency that’s cropped up.
Unfortunately, Americans tend not to stash cash back for either their retirement or emergency situation. 21% of Americans don’t save a drop in their yearly income.
That being said, some Americans try to save a little, which usually amounts to less than 10%.
However, when looking at this figure, statistics show that roughly about 69% of Americans focus on trying to have some sort of retirement plan that includes long-term savings.
Do Americans Have A Lot of Savings?
Even those Americans who try to take some time to put a little money back tend to misjudge how much an emergency may cost them. Most Americans who have some form of savings will find it difficult to cover an emergency situation that costs about $1000.
This means that even though they have taken the time to try to be responsible and put some money back due to extenuating factors, they are greatly under-saved. Most experts suggest that you keep roughly half a year’s worth of expenses saved.
Why Do People Not Like Saving Money?
There are a lot of reasons why people do not like saving money. Most financial experts will say it’s not that they don’t necessarily like saving money. It’s just that they come up against some external troubles that keep them from putting that money back.
Along with this education, the importance of having savings is also lacking in both schools and life in general.
Here are some reasons why people may find it challenging to save money:
- Many people find themselves living paycheck to paycheck and simply don’t have the budget to put anything back.
- Financial education is not something that is stressed in school or in many households. Not having this education and literacy can cause them to put less value on having money in that savings account.
- Many Americans struggle with debt period whether that is credit card debt or student loan saving when you’re straddled with that type of stress is impossible.
- There are those out there that just have a natural tendency to want to overspend and not keep a keen eye on their bottom line.
- Many people don’t have goals set. Without goals, they have nothing to motivate them, and therefore saving money is quite challenging.
Do People Regret Not Saving Money?
Regret is something that can be a burden on us and cause a lot of stress and anxiety. One of the biggest regrets many people have is all to do with finances.
With so many Americans struggling to save money, it’s not a surprise that one out of every five of them really regret not having any money put back.
Along with this, 33% of Americans fight with their regret about having very little money set aside for emergencies. But dwelling on this can only exacerbate the situation. Regret leads to stress and anxiety, and that, in turn, can affect any individual’s desire to put money back.
Are People Who Save Money Happier?
So does having money stashed away for a rainy day make you happier? This is really dependent on the individual. Some people truly believe that money is meant to be spent and enjoyed at the moment and not put back for an unsure future.
But a majority of people do find having the security of knowing that even if something goes wrong, they will be able to financially support themselves to be quite helpful when it comes to stress and anxiety.
So whether they are happier does solely rely on what the individual is looking for out of life.
Final Thoughts on Why Don’t Americans Save Money
Americans struggle with the idea of saving money, especially the younger generations. This is because of many different factors but primarily due to a lack of education and opportunity.
Most Americans are not taught about the value of having a savings account, whether for retirement or an emergency situation. On top of that, many Americans don’t have the budget to save.
So when you’re living paycheck to paycheck, it’s hard to think about putting any money back because every penny counts.