This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The More You Make, the Less Likely You Save

By Hal M. Bundrick

NEW YORK (MainStreet) Do you enjoy saving money or spending it? Americans may be making their New Year's resolutions to do a better job of saving more of their income, but a new Gallup poll shows that those who are most likely to save have the lowest disposable incomes.

The survey reports Americans with the absolute lowest annual household incomes -- $20,000 or less -- are the most likely to say they enjoy saving money (66%) rather than spending it (30%).

Of those with higher incomes, 56% of households earning between $50,000 and $74,999 claim to be savers rather than spenders, and 55% of those earning $75,000 or more claim to enjoy saving money more than spending it.

The data has been aggregated from interviews with over 6,000 U.S. adults, conducted from 2009 to 2013. Gallup says that, particularly since the 2008 financial crisis, the majority of Americans have said they prefer saving money to spending it. Prior to that, respondents were more evenly divided between saving and spending money. Perhaps still raw from the recession, respondents stating a preference to spend rather than save has not returned to pre-crisis levels.

Gallup reports the personal savings rate -- savings as a percentage of disposable income -- has grown only modestly since 2007, averaging 5.5% per year from 2008 to 2013. By comparison, from 2001 to 2007, the personal savings rate averaged 4.0%.

"Attitudes about spending versus saving also vary with age," the Gallup report says. "Younger adults are more probable spenders, which makes sense as they are less likely to be supporting a family or paying a mortgage and may figure they have time to save later in life. Older Americans -- those aged 65 and older -- are the most probable savers, with many living on fixed retirement incomes."

Since 2009, most Americans have said they prefer saving over spending, but the fact remains that the average U.S. household owes $7,128 in credit card debt, while the average student debt load that college graduates carry is $32,000. U.S. consumers as a whole owe $11.32 trillion, nearly equal to the entire U.S. gross domestic product.

Written by Hal M. Bundrick for MainStreet

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs