WASHINGTON (10/9/14)--Credit unions have shown that consumers can be motivated to save more money through creative programs such prize-linked savings. A new survey shows that young consumers may need that kind of motivation to develop better savings habits.
Between September 2013 and September 2014, the personal savings interest and effort of young adults declined considerably, according to data collected by America Saves for its triannual Personal Savings Index.
During that time, interest in personal savings for those 18 to 34 years old fell to 68% from 77%, while the reported savings effort of these young adults declined to 57% from 66%. Reported savings effectiveness for this group was also lower--60% a year ago, but only 57% last month.
"A combination of low incomes and high debts may help explain the decline in personal savings interest and effort by young adults," said Stephen Brobeck, Consumer Federation of America executive director and a founder of America Saves. "All the data we've collected over the past year in our national surveys suggest that those who are struggling financially have lower levels of personal savings interest and effort."
In September 2013, January 2014, May 2014 and September 2014, America Saves commissioned national surveys undertaken by Opinion Research Corp. (ORC) International of 1,000 representative adult Americans.
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 10-point scale. ORC International reported averages and distributions of responses. The surveys had a margin of error of plus or minus three percentage points.