A new study conducted by the Consumer Federation of America reveals that few Americans are incorporating savings into their personal finance management plans, which may leave them vulnerable in the future. Basic necessities like housing, food, clothing and utilities are becoming more expensive by the minute. Conversely, the average household income has decreased over the years. Consumers survive on a limited income and are forced to put future financial security on the backburner. It has become harder to manage personal finances but setting aside a little money for the future is critical.
Americans Struggle to Save
While nearly half of Americans engage in savings habits to build stronger financial profiles, the other half is falling behind. Almost a third of respondents do not have an emergency savings plan to cover sudden expenses. The study also shows 51 percent of non-retired respondents may not contribute enough to their retirement accounts to meet their desired standard of living.
Stephen Brobeck, executive director of the CFA stated, “The recession still has not ended for millions of American families… Many working families are still suffering from high unemployment rates, stagnant incomes, and a housing market that is just beginning to recover.”
Explore Your Savings Options
Meet with a credit union representative to explore options that can generate a plump savings account. Various types of accounts are available to customers. They include:
- Traditional savings accounts
- High-yield savings accounts
- Certificates of deposit
- Money market funds
Consumers can also access valuable resources and tools from their credit union to trim down debt and implement money-saving budgets.
Credit Unions Offer Better Rates
Credit unions offer lower interest rates on loans and offer higher interest rates on savings, checking, and money market accounts as an added perk. Interest rates at banks are usually around 2% or 3%, but credit unions typically offer at least twice that amount. Credit unions are non-profit organizations that have your best interest in mind.
Saving money is essential to establishing financial security. If you would like to invest in your future by opening a savings account, call Valley Federal Credit Union’s main office in Brownsville at (956) 546-3108.