The folks at America Saves Week recently released their Survey of American Savers, which they took in March of 2014. They were looking at the non-retirement savings habits of those who had signed the America Saves pledge.
The survey asked where people put their money. Large numbers of people reported saving their money in traditional bank savings accounts (34%) and credit union savings accounts (30%). These don’t necessarily offer the best rates, but they are safe, which makes them great places to keep emergency funds. One interesting finding is that 13% reported using a safe place at home, which isn’t a good option at all.
One great finding: 70% use some sort of automated saving plan such as payroll direct deposit. It may not seem like a big deal, but it is: if you take your paycheck in cash, you are more likely to spend it foolishly – a lesson I learned from a colleague who once took a paycheck in cash and spent it all at a bar that night. Everyone loved him because he bought a few rounds for the house. Everyone loved him except his landlord, that is.
The good news is that people are saving. That’s an important way to manage risk and make progress.
