WASHINGTON (7/1/14)--In the most recent Personal Savings Index from America Saves, consumers reported being more interested in saving and putting greater effort into doing so, resulting in more effective savings habits.
May's scores ticked back up to September levels after slumping in January. "The low savings interest, effort and effectiveness in January is probably related to holiday spending that served as a distraction and also made it difficult for many to save," said Stephen Brobeck, executive director, Consumer Federation of America.
The survey, taken every four months, measures consumers' interest in saving, the effort they make to save and how effective they are in meeting those goals.
"However, in each of the three periods, there was a consistent and predictable relationship between interest, effort and effectiveness. Not all those with interest in saving make the effort, and not all those who make the effort are successful," Brobeck added.
As in the two earlier surveys, the savings gap was significant among income groups: those with less than $25,000 income annually were only 60% interested in saving, compared with 80% of those in the $100,000-plus income range. The difference continued in saving effort, 50% vs. 77%, and saving effectiveness, 43% vs. 74%.
"The lower one's income, the harder it is to save, and this difficulty appears to depress saving effort and even saving interest," Brobeck noted.