America Faces Savings Crisis: 1,500 Organizations Help
America Saves Week and Military Saves Week are Feb. 25 through March 2
WASHINGTON, February 21, 2019 (Newswire.com) - The American personal savings rate is at its lowest level since the U.S. financial crisis in 2008, at 6.0 percent of disposable income, according to the U.S. Bureau of Labor Statistics, and is continuing a 60-year downward trend line. Increasing the personal savings rate is the key objective of America Saves Week and Military Saves Week, Feb. 25 through March 2, a joint initiative supported by over 1,500 banks, credit unions, nonprofits and other institutions, including the FDIC, the Social Security Administration, Fidelity and the Department of Defense.
“This savings crisis is putting Americans’ future financial security at risk. We know stagnating wages and increasing costs make it hard for many Americans to make it from one paycheck to the next, let alone save for the future. But America Saves Week provides tools to help,” said George Barany, director of America Saves.
America Saves Week encourages Americans to “take the pledge” to save, identify a savings goal such as college tuition, a car, or emergency fund, then create a plan to reach it. Military Saves Week promotes the same plan for active duty U.S. service members who have a unique set of financial challenges. Numerous activities and services are offered by over 1,500 participating organizations to encourage people to start or increase their saving, including incentivized savings accounts, encouraging the use of direct deposit and split deposits to save automatically, financial counseling and social media encouragement.
Kathy Kraninger, director of the Consumer Financial Protection Bureau (CFPB), said, “Unexpected expenses can happen to anyone. Having savings to absorb unplanned shocks can help people protect their financial future while meeting emergency needs.”
Kevin Condon, head of consumer deposits and small business products at Bank of America, said, “The basic behavior of saving translates into spending control, budgeting and understanding the value of money. By being able to save, people can move forward on the things that matter to them – from establishing an emergency fund to building a nest egg for retirement.”
“The secret to saving is simple,” said Barany. “People with a plan to save are twice as likely to save successfully. Whether you are saving for a rainy day, your retirement, education or another goal, America Saves Week is the perfect opportunity to set your savings goal, make a plan and learn how to save the most effective way — automatically.”
About America Saves
America Saves, a campaign managed by the nonprofit Consumer Federation of America, seeks to motivate, encourage and support low- to moderate-income households to save money, reduce debt and build wealth. The research-based campaign uses the principles of behavioral economics and social marketing to change behavior. Nonprofit, government and corporate groups participate in America Saves nationally and through local, regional and statewide campaigns around the country. America Saves encourages individuals and families to take the America Saves pledge and organizations to promote savings year-round and during America Saves Week. Learn more at americasaves.org and americasavesweek.org.
About Military Saves
Military Saves, a component of the America Saves campaign, is a network resource to the Department of Defense’s Financial Readiness Campaign. It seeks to motivate, support and encourage military families to save money, reduce debt and build wealth. Learn more at militarysaves.org.
Source: America Saves