A third in the US have no savings at all

[jeffrey]

In his inaugural address, President Obama talked about a country where even "a little girl born into the bleakest poverty knows that she has the same chance to succeed as anybody else." But in reality, that's not always the case. A new report finds that one of the biggest obstacles for many Americans is that they don't have the savings or assets they need to help them get ahead.

Nearly 44 percent of Americans don't have enough savings or other liquid assets to stay out of poverty for more than three months if they lose their income, according to Wednesday's report by the Corporation for Enterprise Development. Almost a third have no savings accounts at all...

Study: Nearly Half In U.S. Lack Financial Safety Net : NPR

[JoeP]

A couple comments under this article caught my attention:

--H S drop outs are particularly vulnerable to 'non-saving.' The very first years of HS should push for basic mastery of arithmetic, budgeting, and household economic planning

--Learning how to select a competent and compassionate life-mate is apparently a disappearing skill in our society and expecting some perfect compatability is it's own special scourge. Far more "relationship education" is needed as a stable home life with two potential wage earners, and for certain, two parents to guide, direct, and socialize the children are of very significant economic value.

--Just 'saying "NO!" ' to a vast swath of advertisements is absolutely essential to escaping poverty and building a bit of a economic safety fund.

I agree with all of this. Not saying it would solve all the problems, but I think society would be in a better place if more people applied some of this wisdom.

[elessar78]

In all fairness, the deck is more than a little stacked against the individual when it comes to saying no. I work in advertising and the field is all about getting to "Yes". The indiv. is going against reams of research and science to hit you at your weakest.

Did you know that willpower isn't merely a psychological thing? There are actually scientists that specialize in willpower. And willpower is just one aspect of the saying no/decision making process.

You have a limited amount of willpower in a given day, the more you use it the less you have of it. But you can also train yourself to have more (think how a long-distance runner gains more endurance).

The next argument you'll probably put forth is that it's illogical to spend so much or more than you have. BUT, humans are rarely logical they are more of emotional decisionmakers.

[JoeP]

I don't want to get into another debate over the effects and benefits of advertising, but let me just say this and I'll shut up: I've found that for me, the best way to just say "no" is to avoid exposure to the stimuli that are trying to get me to "yes."

[elessar78]

It doesn't have to be a debate. We can just have a friendly discussion.

But your avoid stimuli approach is exactly what researchers have found to be a common thread amongst people who exhibit great discipline and will power. They play "offense" so to speak. Since willpower is a limited resource in the body (powered by, of all things, glucose) then if they don't expose themselves to temptation then they don't have to use their willpower reserves. Avoid malls, fast forward through commercials, etc. it all helps to keep us strong against temptation.

In a different but related study, do you know what profession has the highest rate of marriage infidelity? Male college professors.

[bjl584]

In a different but related study, do you know what profession has the highest rate of marriage infidelity? Male college professors.

I wonder why....

[Tonyall]

I don't want to get into another debate over the effects and benefits of advertising, but let me just say this and I'll shut up: I've found that for me, the best way to just say "no" is to avoid exposure to the stimuli that are trying to get me to "yes."

That reminds me of when I came back from living on Kawajalien in the Marshall Islands. The military was renting the island, and there were no real commercial enterprises, the only TV was armed forces TV etc.

Anyway, I remember coming back and feeling the urge to buy something after watching a TV commercial. I remember the feeling hit me funny because I had not had it for a long time. It really made me realize how advertising affects you in ways you do not normally realize.

[need2save]

I believe it. Unfortunately it is a sad reality for many. I don't have any savings, I keep trying to save but, since I can't cover my expenses, I can't really save because I need all my money to just live. I don't buy any extras, only neccessities, however there are also people who say they can't afford basics but spend money on fast food, cigaretts etc those people I don't feel bad for because that is money they could be saving.

[elessar78]

Listening to Marketplace podcast and they just quoted a stat that says only 50% of Americans own stocks. I don't know if I'm surprised or not.

[bjl584]

Listening to Marketplace podcast and they just quoted a stat that says only 50% of Americans own stocks. I don't know if I'm surprised or not.

I believe that. I wonder if that study was talking about owning individual stocks or if it was lumping in mutual funds that people may own within a retirement account like a 401K?

[thesimplemoneyblog]

Yeah, these stats are pretty crazy. Just shows that the concept of retirement for so many people won't be in the question...

[elessar78]

I believe that. I wonder if that study was talking about owning individual stocks or if it was lumping in mutual funds that people may own within a retirement account like a 401K?

I hope that it's individual stock, I can't fathom people not even contributing 1% to an work sponsored retirement account. I'll try to dig it up.

[elessar78]

Yeah, these stats are pretty crazy. Just shows that the concept of retirement for so many people won't be in the question...

IF it only affected them, but as a society we bail these people out one way or another. It turns into a drain on Medicare and other services the gov't provides.

[bigdaddybus]

I don't want to get into another debate over the effects and benefits of advertising, but let me just say this and I'll shut up: I've found that for me, the best way to just say "no" is to avoid exposure to the stimuli that are trying to get me to "yes."

strongly agree