Saving is a financial challenge for millions of Americans.
Building savings is a critical step on the path to financial security. For financially vulnerable people, saving for short-term emergencies can feel difficult, while saving for larger goals such as retirement or education can seem unimaginable.
A national survey by the Federal Reserve found that only 53% of respondents could cover a $400 emergency expense without selling something or borrowing money. This drops to 25% for households with incomes under $25,000. In addition, less than half of those making under $40,000 a year report having any money saved in a retirement account.
The link between household savings and family stability is increasingly accepted, backed both by decades of academic work and simple common sense. Families that have something in reserve are better able to handle financial crises and better positioned to pursue long-term financial goals.
To save successfully, people need engaging, affordable, and accessible saving tools. Commonwealth works to find saving solutions that support the aspirations of financially vulnerable people.