Even as the US economy consolidates, many Americans find it difficult to save despite unexpected emergencies.
The Federal Reserve Board released on Thursday its report on the economic well-being of US households, noting that it's only 61 percent of Americans could cover unexpected 400-dollar spending with cash, savings or a credit card the next billing will be paid. The Fed noted that the number represents a modest improvement over last year's results.
In the meantime, more than a quarter of people would borrow or sell something to achieve the $ 400 bill, while 1
"Relatively small, unexpected expenses such as a car repair or the replacement of a defective device can be a hassle for many families without adequate savings. "It says in the report.
Seventeen percent of people are unable to fully pay their monthly bills. Another 12 percent of people would not be able to pay these monthly bills if they faced unexpected $ 400 spending Last year, 25 percent skipped the necessary medical care because they could not afford the expense.
When asked about financial comfort, three-quarters of Americans said they either live comfortably or are okay – a 13 percent rise over 2013.
Saving problems occur when the US Economy recovered. Gross domestic product (GDP) rose 3.2 percent in the first quarter, while disposable income increased by $ 116 billion. The unemployment rate is also half a century low.
It's not just saving money that people are struggling with. According to the Fed, a quarter of non-retired adults have no retirement assets or retirement pensions.
CLICK HERE TO GET THE FOX BUSINESS APP on Thursday passed a bill proposing changes to popular savings plans such as 401 (k) s and IRAs. This would also encourage companies to offer retirement plans to their employees, including part-timers.
The Fed's findings are based on the financial experience of 11,000 respondents interviewed in 2018.