Overview of American Saving Habits
American saving habits mean the propensity of the people of the United States of America to save from their income. It is important to get a grasp of the American saving habits in order to understand the condition of the American economy.Tendencies in American Saving The condition of savings in the United States of America is far from the desired levels. The main reason behind the fact is that compared to earlier times the people of the United States of America are saving less now.
Statistics of American Saving As per the statistics available, the individuals as well as households were able to save no more than around 3 percent of their total earnings in the year 1987.
However, the figure in Germany at the same time was 12 percent and for Japan the corresponding rate was 16 percent. This is a rather inexplicable thing as tax reduction laws had already been introduced in the United States of America in the year 1981.
All the more startling is the fact that the rate of savings had come down by almost 6.7 percent after 1981. Areas of Saving for Americans It has been seen that normally the Americans save in order to avoid the bigger financial crises of life. The prominent examples would be the various medical emergencies. At present there are the following organizations that have been helping people to pay their medical bills:
Yet another area would be saving for retirement. However, organizations like the Social Security are helping out the Americans in this regard as well. The area of educating the children has also been made less expensive through monetary helps made by institutions at the state and federal level.
All this means that the people may not need to pay equal attention to their savings like they might have done when these organizations were not operating. All this has been reflected in the rather sorry state of savings in the United States.
Last Updated on : 3rd August 2013