Why Americans Are Awful Savers

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has a debate going on today about why Americans can’t save.  While spending and borrowing is up, America’s savings rate fell from 7% down to 5.3% in December.

They site a recent poll which found that “27 per cent of Americans have no personal savings and 34 per cent have no retirement savings, an increase from over a year ago.”

Their experts weight in: “There’s no pension, so we have not chance to save,” writes one. “We’re buried by bad mortgages,” says another.

Alexa von Tobel, founder of finance education site LearnVest, has built a business around how bad people are at money management, “I had a friend who thought she was supposed to only pay the minimum amount on her credit card every month,” she said at a September event.

So maybe we’re just ignorant. Or greedy.

Here’s the discussion at NYT, but we want to know what you think. Leave a comment below.

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