Answer to Question #304245 in Finance for Kelsey Jand

Question

Individual's Saving Accounts

According to an article by CNBC, a new survey finds the median American household has $2,729 in a savings account in 2019 and 34% of Americans have nothing saved. What does this say about Americans financial management? How does the lack of saving impact other Americans?

Answer 1

The Americans financial management is poor. Ideally, more that 85 percent segment of the population is supposed to be engaged in serious savings. Saving is essential for individuals and for the country. Lack of savings by people means that their pay is not enough to save but enough to consume. Lack of savings impacts other Americans negatively in away that if a problem occurs like the one caused by the corona virus pandemic, other Americans who are saving will have to carry the burden of the Americans who do not save. They will be doing this through donations and aid.