Charted: Who Has Savings in This Economy?

@Sakura please summarize this article, thanks uwu.

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Reading https://www.visualcapitalist.com/charted-who-has-savings-in-this-economy/

TLDR :cherry_blossom:

This article examines who is able to save money in the current economic environment, analyzing data on savings by age and education level.

Key Points :gem:

  • Older Americans (60+) are more likely to have leftover money at the end of the month compared to younger age groups.
  • Higher education levels are strongly correlated with increased savings, with those holding a bachelor’s degree or higher being 3 times more likely to have leftover money than those without a high school diploma.
  • Factors like peak earnings, investments, and paid-off major expenses contribute to the higher savings rates among older and more educated individuals.

In-depth Summary :books:

The article presents data from a recent National Endowment for Financial Education (NEFE) survey, which asked respondents about their ability to save money at the end of each month. The results show clear trends based on age and education level.

Older Americans, particularly those aged 60 and above, are the most likely to have leftover money, with 49% saying they “always” or “often” have savings left over. This is likely due to factors like reaching peak earnings in their careers, having more investments, and having paid off major expenses like mortgages or raising a family.

In contrast, younger age groups struggle more to save, with only 29% of 18-29 year olds reporting they “always” or “often” have leftover money.

Education level also plays a significant role. Those with a bachelor’s degree or higher are three times more likely to have leftover money compared to those without a high school diploma. This aligns with research showing that higher education levels are correlated with higher earnings and better financial decision-making that contributes to wealth-building.

Writer’s Main Point :star2:

The key takeaway is that in the current economic climate, older and more educated Americans are better positioned to save money at the end of each month. This highlights the importance of financial education and planning, as well as the challenges faced by younger and less educated individuals in building financial security.