Your saving habits and even your savings accounts are making it incredibly difficult to save any real money and build a nest egg.
According to a recent survey from TD Bank, saving is on U.S. bankers' minds -- if not their to-do list. Roughly 52% of people consider having enough saved to cover an emergency a sign that they've "made it" in life. Meanwhile, 69% of Baby Boomers (ages 53 to 71) would tell their 20-year-old selves to start saving or investing now, while 44% of Boomers say the best piece of financial advice they've been given is "don't spend what you don't have."
They're lessons that people seem to heed more often when their financial well being is entwined with someone else's. About 58% of couples include savings in their budget, while 80% of couples who include savings in their budget say they stick to the savings budget always or most of the time. The average American in 2007 saved 2.95% of disposable income, according to the Bureau of Economic Analysis, but started socking 5.85% away by 2016 (what a difference a recession makes). That sounds great, but that means the average American is only saving $2,540 per year. Try replacing your vehicle's transmission with that.
"When it comes to saving, start early," says James Capolongo, head of consumer deposit Products at TD Bank. "Even though retirement seems a long way off, the earlier you start, the more your money grows."
But how much are those savings working for the folks socking money away. With the Federal Reserve raising interest rates in December and facing down yet another this month, even folks who are just stuffing money away in savings accounts could be taking advantage of better interest rates than what they're currently working with.