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62% of Americans Have Under $1,000 in Savings, Survey Finds

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Re: 62% of Americans Have Under $1,000 in Savings, Survey Finds

#61

Post by joshuacc »

hugh4 wrote: post #39
kd5bjo wrote: post #18

Earlier quoted context omitted.

Checking accounts are also insured by the FDIC, and most people wouldn't include their checking balance when asked about a "savings account"

I probably would, because I'm not sure I see the distinction. I'd also answer "none of your business" if asked.

In the US there is a legal distinction between savings accounts and checking accounts, which governs how many "convenient" transfers can be made to/from savings accounts, among other things. The question is specifically asking whether people have money in the legal "savings account" category, not whether they have savings in any random bank account.

Re: 62% of Americans Have Under $1,000 in Savings, Survey Finds

#62

Post by ryandrake »

manigandham wrote: post #2

This should be more explicit in saying "Savings Account" and not just savings. I have plenty of savings yet have 0 savings accounts (since they're practically useless). A little misleading here when many people just keep their money in checking or investment/retirement accounts.

But, surely anyone with over, say, $10,000 in total savings/investments has at least $1,000 (10%) of it in some kind of cash account. Why on earth would one keep all of their assets in accounts that could lose value?

Re: 62% of Americans Have Under $1,000 in Savings, Survey Finds

#63

Post by claar »

hugh4 wrote: post #37
Spooky23 wrote: post #26

Earlier quoted context omitted.

If you need liquid savings, cash is king. I opened a savings account with my son a few weeks ago. In my day, those accounts paid 3-7%. There was a story of compounding interest to tell. Now, I feel like I'm teaching my kid to be a sucker.

I think if I ever have a kid I'll let him open a "bank of Dad" account which pays a decent interest rate just to get him into the habit of investing.

Thanks -- I'm stealing this great idea.

Re: 62% of Americans Have Under $1,000 in Savings, Survey Finds

#64

Post by HLRoku »

maxerickson wrote: post #46
HLRoku wrote: post #35

Earlier quoted context omitted.

Correct me if I'm wrong but I thought the point was that savings accounts are not worth it, leading many people to say their saving accounts are barren, not that they don't have savings saved up. Personally I'd fall into that category, I put all my money in checking since the interest is so poor in savings accounts I'd rather see that money go to some retirement fund or investment than see it get so little return in…

A big chunk of people just don't have any money held in reserve: https://news.ycombinator.com/item?id=10354263

Well, that's depressing.

Almost hard to believe, to be completely honest -- but I might just be around the right group of people?

Re: 62% of Americans Have Under $1,000 in Savings, Survey Finds

#65

Post by kristopolous »

So what do we do about this? Should we have a society where people are working full-time and living paycheck-to-paycheck? Is that a fair and equitable thing?

After we fix our government corruption in this country, we should look towards more socialism - I'd rather live in a society that houses homeless children, cares for its disabled, helps its sick, and empowers its poor, then one that doesn't - and I think most people share my view.

Re: 62% of Americans Have Under $1,000 in Savings, Survey Finds

#66

Post by 6stringmerc »

jellicle wrote: post #49
manigandham wrote: post #31

Earlier quoted context omitted.

How does not including other vehicles help give an accurate picture of "savings"?

The vast majority of the population is not saying "I have nothing in savings" because all their money is tied up in yachts and Manhattan real estate; it's because they have no money.

Thank you for that take on it. As a 30 something, I've been "coached" over time that savings is for liquidity in the case of an unexpected event - loss of job for X months (cover bills with savings), medical emergency (cover bills with savings), or potential family development (need to purchase vehice for teenager). These events are not supposed to be covered by "dipping" into retirement funds, e.g. IRA or 401k.

The ideal method of financial planning I was taught is to invest for retirement through financial products which minimize risk and are not liquid assets, while concurrently saving in a "traditional" account.

Re: 62% of Americans Have Under $1,000 in Savings, Survey Finds

#67

Post by irremediable »

As others have pointed out, the article is stupid because it asks a misleading question.

So, instead of discussing that, I'd like to ask: roughly what savings do HN readers have?

How much should I be saving at the minute? What should I be saving it in?

I'm a PhD student in my early 20s, living in London, and I only have about ~£500 in savings. I'm trying to save £1000-£2000 per year. At the minute, I just keep my savings in a separate current account to my main account -- which also has higher interest (3%).

Re: 62% of Americans Have Under $1,000 in Savings, Survey Finds

#69

Post by ryandrake »

tootie wrote: post #34
nostromo wrote: post #10

Earlier quoted context omitted.

Also, the article title is very different than the actual survey question: > How much money do you have saved your savings account ? That's a very specific question. A person with $5k in their checking account or a person with $100k in a retirement account might still answer that they have no savings.

My net worth is probably top 5% or so and I haven't even had an open savings account in 10 years. Cash on hand or it's invested in stocks, bonds and my home.

Curious, not criticizing: What is your plan if you get sick or laid off, or for some other reason need a large amount of cash immediately? I always thought it was common advice to keep ~6mo living expenses in cash savings for emergencies.
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