Uh oh. We’re saving even less!
Posted by Cap in Personal Finance |I noticed a quick vote poll at CNN.com today, with a link to an article on how Americans are saving even less these days. Not something new really, but still a good reminder. The article pose an interesting question.
The savings of U.S. consumers are:
- a) at the lowest rate since the Depression.
- b) at peaks not seen even during the stock market boom of the late 1990s.
- c) all of the above.
Geez, I wonder what’s the answer.
Here’s a snapshot of the poll result as of that time. It looks like we’re either saving some money or having nothing left to save at all.
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August 9th, 2005 at 11:04 am
Keep in mind that the calculations for the National Savings Rate count principle paid on home mortgages as “spending” (see below). Since housing is an appreciable asset, this should be more properly classified as “savings/investing”.
Their home is the largest asset most Americans have, and with the current housing market it is no surprise that what might otherwise be money in the bank is now money in a house.
From the article:
“The Commerce Department calculates the savings rate by taking the difference between after-tax income and all expenditures, including housing, food and clothing.”