Answer to Question #305911 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: I personally think that majority of Americans today just simply cannot afford to put money into saving accounts and that they need to money earned to keep them afloat. Especially in this time of inflation and job loss, poverty and the divide between the haves and the have nots is quite harsh. And the lack of savings for each American individual could mean very bad news and they can easily go into debt from a large purchase or finical risk.

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

Based on the data presented, it can be said that these 34% either spend too much or are below the poverty line.

Lack of savings can also affect investments in the country, which then affect other citizens: no investment, no economic development