Why Don’t Americans Save?

Americans are saving less–no surprise with the state of the economy. Many people, particularly in lower or middle-class households, don’t manage to put any money aside, even in boom times.

It’s not just a recent problem, either: the savings rate has been falling steadily for the last 44 years.  Despite uncertain economic conditions, wage stagnation and growing consumer pressures, more Americans have been skipping the piggy bank and heading for the mall (or paying their existing bills).

This trend is alarming to some, and they are trying some dramatic and unusual things. For instance:

• A program called SaveYourRefund is offering folks a chance at a $25,000 prize if they set aside part of their tax refund money in a savings account or U.S. savings bond. The idea is that blending the thrill of playing the lottery with a sensible savings plan will get people interested.
• Another program called Kindergarten to Collect automatically opens a college savings account for every child that enrolls in kindergarten in San Francisco, then the city chips in $50.
• A program in Los Angeles hooks people who make less than $30,000 annually up with savings accounts: because you can’t save without banks, right?

Of course, the last way is to force people to save: that’s what Social Security does. Everyone pays in during their working years, with the implied promise that they’ll get a payout when they are too infirm to work.

If you’re investing in precious metals, you are already a “saver,” without these programs.

Why do you save? What motivates you to keep going?

Leave us a comment below, or visit our Facebook, Twitter and Google+ profiles today.