Surprising Statistics on Savings Trends

With the New Year approaching, pumping up the savings account is one of the common resolutions. The economic downturn of the past six years has resulted in a more conservative approach to finances than was employed around the turn of the millennium, however, according to a recent Gallup Poll, the desire to save is closely tied to income. Surprisingly, the lower the annual household income the more importance is put on savings. Those with incomes under the $20,000 mark are the most likely to see the importance of savings and the percentage of household that prioritize savings decreases as income rises. Age also play a role in financial priorities, according to more than 6,000 people of varying ages and income levels that were polled. Younger workers, under the age of 49, were the least likely to pull back on the spending, while those over 65 are more likely to keep a close check on the bank balance. Young workers may not have the encumbrances of families or mortgages, while many older Americans live on a fixed income. Conservatives of all ages are more likely to save money than their more liberal counterparts, according to research.

Though more Americans are focusing on savings than they did a decade ago, the rise is not as significant as the debt that the average household incurs annually. The average American household has more than $7,000 in credit card debt and college graduates carry an average of more than $30,000 in debt. The desire to save may be in conflict with the ability to save. While the average American household income, at slightly more than $50,000 annually, is significantly greater than the world wide annual household income of just $10,000, American consumers owe more than $11 trillion dollars in debt. With only 55% of those in an income bracket that can more easily save ($75,000 plus) putting an emphasis on planning for their financial future, there is a definite divide in financial priorities in households across the Nation.