Why Are Americans So Bad at Saving Money?

The math of savings isn't hard. But, for Americans, the act itself seems quite impossible, as the U.S. has one of the developed world's lowest savings rates, despite the fact that the richest Americans easily put aside half their salary. As Derek Thompson explains in this episode of Economic in Plain English, the culprit isn't only in our wallets and price tags, but also in our brains.

[eatnplaytoday]

Guess I operate differently. Spending money makes me sad. Saving money makes me happy, especially after I paid back $34k of student loan debt in August 2019. Since then, I've saved almost $20k. I put about $8k of that in individual brokerage accounts, left $12k in emergency savings, have almost $10k in retirement account at work and no more debt.

[ellensteinbrinck]

Dude, I'm poor as hell. And I blame myself entirely. I don't blame ads, marketing, etc. I blame myself for being too immature to apply myself to saving money on a regular basis and learning financial discipline. I am in the beginning stages of building up an emergency fund and paying off some old debts, and I will be so happy when I finally reach my goals.

[foreverafterarts]

I work at Walmart and I have money saved. The sad part is I work with a lot of elderly people that should be retired by now and are in very bad condition. They don't have money saved up and they said I'll just have to work until I die....

[WallStMario]

Coming from a recently turned to socialism-poor country like Venezuela and being in the US for the past two years I can say that the most probable reason americans dont save enough is because everything here is so easy to buy, you can get cars by monthly payments and get credit cards everywhere you go. You can basically buy stuff without even having the money to do so, everything is too attainable. Just live within your means and don't be a compulsive buyer, you'll thank me later.

[JustaGamerT]

I'm a millennial who was raised by Jews who taught me the value of saving and earning money. And I get anxiety when I see others who make less money spend more than me. It's not just an American thing to spend money, but a cultural one.

[jasonchen]

*buys newest iPhone, demands 2 room apartment, eats out a lot, complain about being broke*

[CharlesCampo]

im 27 and have already saved $90, 000. I think its not enough for retirement but its a good start

[DerDudelino]

Does this potentially have to do with credit cards? I know a good amount of people who just spend whatever they want without checking their balance. Even worse:
They have multiple credit cards at multiple banks which can get them in serious debt when overspending. It's one of the reasons people in Germany love actual money in their pocket that they can count when shopping even though this is very old-school behavior.

That being said though: Americans own homes which is great for your retirement. Germans have more savings, but less real estate since the majority rents.

[rachidlasfar]

One point to add is that when people found that life is getting expensive, they gave up and stop saving,
People can always save if they can't increase income can minimize expenses.
By the end what a human needs first:
Food
Accommodation
Education

Don't forget to enjoy simplicity and satisfaction

[antoniusevan]

Who cares if you look to be poor? Saving so much fun, don't you feel happy seeing your bank account number increase? No? Just me?

[Mos]

Because we have a society of instant gratification. People by crap they don't need and they can't afford, and then panic when the economy takes a downturn.

[alexhodge]

We can't fairly blame the wealthy Jones family for their poorer neighbors' foolish overspending.

[arturochacon]

I believe that regardless of the income of the person doesn't matter. But how much of that money you keep it is the will and mentality of the person. a person that makes 300 a week could have more saved then one that more than a thousand every week or every 2 weeks. this has been problem and I am sure that I am not alone

[cheapbastard]

I save money by not paying things I don't need and paying no expenses by living with parents. I'm saving thousands.

[cornellouis]

When you talk about income inequality causing poor people to spend, really what you're talking about is consumption inequality causing poor people to spend, since my 401(k) account doesn't cause a person to go out and buy a brand new car. Blaming people who work hard to earn more money really isn't going to get us anywhere. People need to learn and have the freedom to live within their income. If Americans "can't be trusted to save" - what can we be trusted with? Can we be trusted with anything? If programs that withhold money from our paychecks are so good, why don't we just withhold all the money from the paycheck? This discussion is very unbalanced.

[ogeidnomar]

Saving money with or without a bank account (preferably Checking) should be encouraged. Saving $20 for 52 weeks is 1000 and change. $40 for 52 weeks is 2000 and change, $60 for 52 weeks is 3000 and change, $80 for 52 weeks is 4000 and change, $100 for 52 weeks is $5000 and change etc... Many of us can save more than that and others less but the goal is to slowly build your wealth.

[richardunderwood]

It's the Federal Reverse's fault for keeping interest rates so ridiculously low.

[itsrelativ]

Feminism, student loans and consumerism.

[BlackMenAreDope]

Because we have been brainwashed to go into debt for college, get married after graduation to someone who also went into debt for college, make babies with them while we are still in debt, and feel the need to go into more debt for a house because now we have a family. All of that leads to credit card usage that spends out of control, which leads to home equity loans to pay off the credit card debt. 15 years later we have two mortgages and are upside down on at least one car and still have the student loan debt. Now we are considering bankruptcy but that doesn’t solve our real problem which is our relationships with money. So we go right back in debt just to do it all over again.

[ogeidnomar]

I would be considered lower middle class and I save half of two of paychecks. I get paid weekly. I am a minimalist as well and do not feel pressure at all to buy things to feel better about myself or to impress others. To add more I am a vegan and am able to save even more and I guess saying I am currently separated from my lady allows me to even save more and the lastly I have no Children to worry about at the moment... Any other man or woman in position can make the effort, it isn't hard, and investing in yourself should be a no brainer....