Hard-Hit Families Finally Start Saving, Aggravating Nation’s Economic Woes January 6, 2009
Posted by BDO in News.Tags: beating, consumer, Debt, economy, education, finance, journal, News, saving, street, wall
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By Kelly Evans
In the American buying spree of recent years, the most profligate spenders were those under 35. As recently as 2006, for every $100 these Americans earned, they spent about $117. Those aged 35 to 55 had negative saving rates nearly as large. Only the large number of Americans 55 and older, who have always had high double-digit saving rates, kept the overall saving rate above zero, according to data from Moody’s Economy.com and the Federal Reserve.
“The idea that the American family will quickly spend us out of this recession is a fantasy. It won’t happen,” said Elizabeth Warren, a professor of law at Harvard University who last month was named chair of the Congressional oversight panel tasked with overseeing the distribution of the government’s Troubled Asset Relief Program funds.
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Excellent article. This speaks volumes of ‘what if we had lived like this all along’… living frugally is like making a lifestyle change when one commits to dieting. One’s whole being is affected; the outlook, the choices, the determination. Unfortunately, those of us that have been making frugality a lifestyle for many years have very few things left to give up or modify. I’ve done without the monthly trips to the beauty salon/spa, the magazines subscriptions, eating out, the vacations to exotic places, the shoes to match every outfit, etc. That was our choice instead of going into debt for such things. I don’t regret not have those things, peach of mind was a much nicer reward.
It is also unfortunate that the economy that thrived on our spending will also suffer because of our not spending. Hopefully we will find a balance.