WASHINGTON—The interest, effort, and effectiveness of Americans to save personally was much higher during January of 2015 than it was during January of 2014, according to data collected earlier this month by America Saves for its triannual Personal Savings Index (PSI).
In January 2014, savings interest was at 65%, savings effort at 58%, and savings effectiveness at 56%. In January 2015, interest was at 70%, effort at 61%, and effectiveness at 59%.
These latter percentages were only marginally lower than those for savings data collected in both September 2013 and September 2014.
“Last year at this time, we suggested that a post-holiday financial hangover helped explain the decline in savings interest, effort, and effectiveness from September 2013 to January 2014,” said Stephen Brobeck, Consumer Federation of America Executive Director and a founder of America Saves, in a statement. “But the fact that the decline did not occur between September 2014 and January 2015 suggests that Americans are now feeling better about their financial condition,” he added. Data collected by ORC International for America Saves in five triannual surveys shows a strong positive association between PSI percentages and household income.
Comparing survey data over the past year also suggests that substantial increases in the savings interest, effort, and effectiveness of low- and middle-income households account for almost all of the overall PSI increases. Significant increases occurred for those with less than $75,000 annual income, but little or no increases for those with income above this amount.
“Our new data suggest that low- and middle-class Americans are feeling more optimistic about their financial situation now than a year ago,” Brobeck noted. “Instead of being distracted by heavy holiday spending and debts, they are nearly as interested and active saving today as they were this past September,” he added.
The most recent survey was undertaken for America Saves by ORC International, which surveyed a representative sample of adult Americans (by cell phone and landline) January 8-11, 2015. Respondents were asked, after learning that the survey dealt with “personal saving for goals ranging from a rainy day fund to retirement,” to rate their personal savings interest, effort, and effectiveness on a ten-point scale. The survey has a margin of error of plus or minus three percentage points.
Related