A Disturbing Statistic

Yesterday, for the 2nd year in a row, the personal savings rate in this country was reported to be negative at -1%. This is very alarming to me as this is the lowest since the Great Depression and means, on average, Americans are spending more than they are earning.

This brings up a question all of us should ask ourselves - are we saving enough? Are we prepared for a financial shock to our personal finances even if only temporary? I fully understand that there are people out there that have a hard time getting by and saving is truly not an option. However, there are many people that live paycheck-to-paycheck, not because they have to, but because they choose to.

I'm always amazed at the responses by friends and family when we discuss this topic. So many of them don't even know what their monthly income and expenses are let alone have an actual budget. I'll admit that I probably go too far in the other direction because I categorize and budget everything down to the penny. And every year I try and find ways to increase income while reducing expenses - it's an annual challenge.

However, I grew up in a family that always talked about the importance of saving money. I took it seriously as a child and I continue that behavior now. I wonder how many people get bad financial habits from their parents? I mean I can't recall discussing personal finance in school. It seems like an important topic to me so perhaps the schools should consider focusing on this subject a little more...