Answer to Question #305905 in Finance for Kelsey Jand

Question

Discussion Questions: According to an article by CNBC, a new survey finds the median American household has $2,729 in a savings account in 2019 and 34% of Americans have nothing saved. What does this say about Americans' financial management? How does the lack of saving impact other Americans?

Prompt: This says that some Americans either can't or won't save money. Those who can either don't put a lot into savings or don't make a lot of money to put into savings. The lack of savings in people's accounts can lead to debts that come from sudden purchases or debts from planned purchases that the person either doesn't have enough money and is forced to have a small amount of debt, or the person who doesn't save and gains tons of debt.

Instructions: According to the discussion questions, include in your response whether or not you agree or not and the reason(s) why in regards to the prompt.

Answer 1

I agree with the prompt that some Americans cannot save due to inadequacy of funds, and some are just unwilling to save. However, the prompt does not include another reason why Americans do not save , which is lack of financial literacy. Regarding how lack of savings impact other Americans, I agree with the prompt that in the long run, the non-savers will put a strain on the savers when the economy is performing poorly.