Saving Money: The Savings Account

MoneyWatch for January 2006
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Saving money, a habit so ingrained in the American culture after the Depression, is in decline today. The personal savings rate has fallen from 9.39% in 1984 to 2.13% in 2004.

Why is this trend important? Harvard University law professor Elizabeth Warren says, “A nation of savers makes the whole country richer. People who save are more likely to invest in everything working hard at their jobs, getting an education for their children, starting businesses, taking care of their own health.”

Savings can help stabilize individuals and families through difficult times and can help them better their lives. Easy credit has caused consumer debt to skyrocket and personal bankruptcy rates are at an all time high. Fewer companies offer pensions and the future of Social Security is in peril. At the same time, saving helps to pay off debt, buy a home and secure an education - important goals for future success.

Starting to save, especially for those who think they don’t make enough money to save, can be difficult. For help, two local non-profit organizations that were created to help Northeast Ohio citizens build wealth are listed below.

Local Resources

Cleveland Saves
Cleveland Saves is a non-profit coalition of more that 100 Greater Cleveland-area community organizations, religious groups, employers, unions, and financial institutions that offer free services to help people save and build wealth. From its beginnings in June 2000 to today, it has enlisted 6,813 Northeast Ohioans who have saved over $4.4 million. They offer advice, workshops, and the opportunity to save no matter how small the investment.

WECO Fund, Inc.
A 33-year-old non-profit provider of financial services and programs to low and moderate-income individuals and families, and to the companies and organizations in which they are involved. Their work supports the ambitions of people who want to save money, reduce debt and build wealth.

National Resources

U.S. Securities and Exchange Commission’s Roadmap to Saving and Investing
66 Ways to Save Money

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Research assistance for MoneyWatch is from Cleveland State University Nance College of Business Administration. Information on the Nance MBD program is available here.