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A Publication of United Way of Salt Lake |
Feb. 22, 2008
Economists have long warned that Americans save too little and spend too much. According to recent reports, the personal savings rate declined from 10.8 percent in 1984 to near zero in 2006. Clearly, most Americans are living week to week, paycheck to paycheck, and spending more than they bring in.
Sadly, most Americans use their income to purchase products rather than building assets. The harsh reality is that median wages are lower today, when adjusted for inflation, than in 1980, and skyrocketing healthcare and housing costs are pinching the wallets and purses of many Americans. It’s almost staggering to consider that half of all U.S. households have less than $1,000 in net financial assets, and that half of all adults nearing retirement age have $10,000 or less in an employer-based or individual retirement savings account. On top of that, the Average household balance carried on credit cards month to month is more than $9,000.
In Utah, more than 25 percent of our workers earn poverty-level wages—Utah’s median wage of $12.94 per hour is nearly $1.50 an hour less than the national median wage. Thirty-five percent of Utah renters and 29 percent of Utah homeowners are paying more than they can afford for their housing (i.e. more than 30 percent of household income). Nearly 35 percent of Utah school children qualify for free or reduced-price school meals. Utah currently ranks third in the nation for the incidence of hunger, and nearly 200,000 Utahns are without health insurance. Beyond poverty and homelessness, poor financial habits can lead to poor health, domestic violence, troubled youth, and the breakdown of families and neighborhoods.
The financial challenges faced by families touch every aspect of their lives and thus beg the question: What can be done?
I am happy to report that something is being done. A program called “Utah Saves” is helping thousands of Utahns get out of debt, build their assets, and save money for emergencies and retirement.
Utah Saves is a broad-based community effort involving more than 70 nonprofit, corporate and government groups helping individuals and families save and build wealth. Through information, advice, and encouragement, Utah Saves assists people who wish to pay down debt, build an emergency fund, afford a home, education, investments, or retirement in order to improve their standard of living and most important, gain peace of mind. Modeled after the national “America Saves” campaign, Utah Saves arose out of the need to help Utahns deal with today’s difficult social and economic challenges.
Since its launch in November 2005, nearly 5,000 Utahns have enrolled as Utah Savers and collectively, they are saving over $600,000 per month. Of the 5,000 current Utah Savers, 24 percent are working to pay down debt, 18 percent are saving for retirement, 22 percent are putting money aside for an unexpected emergency, and 36 percent are saving to purchase an asset (education, business, home, etc). These incredible numbers prove that the combined efforts of nonprofit, private, and government organizations can provide the tools and educational resources to help people change their lives.
Read the Impact Matters article in this newsletter for more detailed information regarding the Utah Saves campaign and how you can become involved.
Deborah S. Bayle
President and CEO
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COMMUNITY MATTERS |
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Economists have long warned that Americans save too little and spend too much. According to recent reports, the personal savings rate declined from 10.8 percent in 1984 to near zero in 2006. Clearly, most Americans are living week to week, paycheck to paycheck, and spending more than they bring in.
Sadly, most Americans use their income to purchase products rather than building assets. The harsh reality is that median wages are lower today, when adjusted for inflation, than in 1980, and skyrocketing healthcare and housing costs are pinching the wallets and purses of many Americans. It’s almost staggering to consider that half of all U.S. households have less than $1,000 in net financial assets, and that half of all adults nearing retirement age have $10,000 or less in an employer-based or individual retirement savings account. On top of that, the Average household balance carried on credit cards month to month is more than $9,000.
In Utah, more than 25 percent of our workers earn poverty-level wages—Utah’s median wage of $12.94 per hour is nearly $1.50 an hour less than the national median wage. Thirty-five percent of Utah renters and 29 percent of Utah homeowners are paying more than they can afford for their housing (i.e. more than 30 percent of household income). Nearly 35 percent of Utah school children qualify for free or reduced-price school meals. Utah currently ranks third in the nation for the incidence of hunger, and nearly 200,000 Utahns are without health insurance. Beyond poverty and homelessness, poor financial habits can lead to poor health, domestic violence, troubled youth, and the breakdown of families and neighborhoods.
The financial challenges faced by families touch every aspect of their lives and thus beg the question: What can be done?
I am happy to report that something is being done. A program called “Utah Saves” is helping thousands of Utahns get out of debt, build their assets, and save money for emergencies and retirement.
Utah Saves is a broad-based community effort involving more than 70 nonprofit, corporate and government groups helping individuals and families save and build wealth. Through information, advice, and encouragement, Utah Saves assists people who wish to pay down debt, build an emergency fund, afford a home, education, investments, or retirement in order to improve their standard of living and most important, gain peace of mind. Modeled after the national “America Saves” campaign, Utah Saves arose out of the need to help Utahns deal with today’s difficult social and economic challenges.
Since its launch in November 2005, nearly 5,000 Utahns have enrolled as Utah Savers and collectively, they are saving over $600,000 per month. Of the 5,000 current Utah Savers, 24 percent are working to pay down debt, 18 percent are saving for retirement, 22 percent are putting money aside for an unexpected emergency, and 36 percent are saving to purchase an asset (education, business, home, etc). These incredible numbers prove that the combined efforts of nonprofit, private, and government organizations can provide the tools and educational resources to help people change their lives.
Read the Impact Matters article in this newsletter for more detailed information regarding the Utah Saves campaign and how you can become involved.
Deborah S. Bayle
President and CEO