5 Reasons Why You’re Broke: A Look at How Americans Spend Bank Account Funds
While the latest news proclaims that the economy is rebounding, the truth is that how Americans spend money is dismal. Spending is up, which is good for the economy — but can spell bad news for consumers on the individual level.
“Consumers who find themselves mired in debt are serving the larger economy at great personal sacrifice,” says Stuart Vyse, professor of psychology at Connecticut College and author of Going Broke: Why Americans Can’t Hold on to Their Money. ”The economy runs on consumption, and as a result, personal savings is never mentioned because it is considered counterproductive and a drag on the economy.”
According to the Employee Benefit Research Institute’s (EBRI) annual Retirement Confidence Survey, Americans are living longer — and they do not have anywhere near enough saved in their bank account for retirement. In fact, the report found that the majority of Americans (57 percent) have less than $25,000 in total household savings or investments.
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