In this post, we’ll look at savings account balance by week in the United States. We examine which weeks balances are highest and lowest, and model savings and spending in the United States. When are Savings Account Balances Lowest? The lowest balance week in our dataset was the first week of the year in January, […]
Every year, the “blessing” of tax season provides us the “convenient” opportunity to examine our personal financial performance in the previous year. And what is the most important marker of financial performance? I’m glad you asked – I’d argue it’s your savings rate. The input to this system is, of course, income. From income, there […]
We’re going to make the case that even though it can feel hard at times and you’re probably nowhere near your peak earning years… you should make every effort to build savings in your 20s. When you’re in your 20s, your greatest asset is your youth itself. Not only does being young mean your (possibly […]
A few weeks back we presented one of our signature pieces of original research on what Americans saved based upon their ages. That data used fresh data from the Consumer Expenditure Survey to paint a picture – however imprecise – of savings by income. Today we complete the short lived series with data from the […]
I wanted to take the time to write down all of the personal finance basics as I see them, to create a great resource and easily linked article so you – and your friends – can learn everything without having to search. This post came after years of studying the field, and writing for this […]
Personal finance experts frequently tout the advantages of having a six month emergency fund, if not a more conservative twelve month fund. There are many reasons that a citizen would need to dip into their emergency savings: family illness, death, severe medical expenses, unplanned pregnancy or job loss to name a few. Many reports however, indicate that many (>25% or >50% depending on your definition) Americans still are not prepared for a downturn scenario.
Remember this post we wrote as a reaction to a prompt on our (at the time) current spending and saving? We wanted to revisit the topic with the whole of year 2011 in the books – and some solid numbers.
The issue of the declining in America has been mentioned as one of the ways in which the younger generations are falling behind economically. The caused massive deleveraging in America which increased the savings rate, but most of it was due to consumers reducing and liabilities as opposed to building assets. There could be many causes of this, but to name one: in times of uncertainty, consumer tend to brace themselves for a more hazy future by building as quickly as possible. A decrease in stock prices and eliminated much of the buildup of household assets which needed to be counteracted by an increase in savings. Also, credit standards have tightened, which has further compounded the problem and increased the deleveraging among American households.
We apologize in advance if this discussion is too concentrated on minutiae and definitions, but we’d like to clarify an issue (with the help of our readers!).
Let’s just throw it out here: “How do you define savings?”. It’s a serious question, and you’re going to get two articles with serious answers… one from yours truly and another from Cameron, our resident Economist. Let me lead with my definition: ‘savings’ , in my mind, is any money set aside from current earnings that is easily accessible, liquid, fungible, and have a reasonable chance for maintenance of principal and appreciation.
My article “A Penny Saved is 1.76366843 Pennies Earned” was included in this week’s Money Hacks Carnival!
Head over to this week’s carnival, hosted at Own the Dollar, and check out the 69th edition of the carnival. The article is located under the heading “Frugality & Saving Money – $10,000 Federal Reserve Note 1914”.