Saving Makes Cents in Indiana

Almost half of Indiana Hoosier's do not save a cent of what they earned last year. In 2005 and 2006, consumers dipped into savings and reported saving far less than in any other period in more than 70 years. With forty seven percent of respondents in an Impulse Reach Corp. survey said that they did not save very little income, a situation KeyBank executive have made the focus of an information campaign to address the issue of managing expenses and in preparing for the future. With some of those they surveyed, seventy seven percent expressed interest in saving during 2007, but like many, only time will tell if the people will stick to it. The research conducted by Impulse Research Group "found staggering need for saving." While the average adult has a credit card debts close to $9,000. With such debt is part of falling into a borrowing habit, it starts young, with parents giving children what they want, and then continues as a habit into adulthood.

Nationally the percentage of Americans that reported saving is down to the lowest level since the Great Depression, according to the Commerce Department. The department reported that the savings rate was negative 1 percent, meaning that the people on an average not only spent their earned income, but they also dipped into savings. That savings rate was lower than negative 0.4 percent in 2005 and the lowest since a negative 1.5 percent in 1933. During the hype of the holiday shopping season, consumers spending rose 0.7 percent, out pacing the income growth rate of 0.5 percent. While the economists warn that the saving phenomenon-only four years, in the histories of the records show a negative percentage and is a bad sign for 78 million baby boomers approaching retirement age. Instead of building up the savings, baby boomers are continuing to spend.