Are Savings Accounts a Thing of The Past?

Louisiana workers' compenstion lawyer

Mary29 suggests that in order to allow for inflation over a ten-year period, you need to add another zero to a savings of $1000 over a ten-year period, postulating that after 10 years you will only be able to buy what would cost $100 today. To do that requires an interest rate of about 25.9%. Anyone offering such an interest rate is a Ponzi scheme operator. Actually, Madoff didn't offer near that return on investment. In the cost of housing, the inflation rate might be close to that over the past ten years—I couldn't say. But if you're looking at an overall inflation rate like that, I would suggest you not let your money sit around overnight, even. Spend it now!

A local credit union in the region where I live actually has a savings account for minors where the first $500 earns an extraordinary interest rate - as much as 4 times the current short-term (money market) rate.

There is absolutely NO reason not to take advantage of that - even if it means you sell your blood for a few months to get up the $500. (why not just stop your cable tv subscription for a year... or drop one of the cell phones... or go back to dsl instead of wireless for a big savings there)

By the time your child is 18 and the account reverts over to their control (and that interest rate mysteriously disappears) that $500 will have grown substantially and your kid(s) will thank you. A really nice graduation gift!

When i was younger we did not receive allowance or anything, we had to shovel sidewalks, mow lawns, babysit, etc. for our spending money, in my 20's and having a checking account I used to make a $50. or 100. error in my checkbook and enter that date and add as a deposit in back of my check register so each month when reconciling checkbook always balanced by adding your check register savings (in back of book) to actual funds and balanced fine and at end of year had a couple thousand more than spouse new about as it was, whatever in checkbook she would spend and wait for next paycheck, have also taught this to some that was having problems saving but spending the extra cash in checkbook.

No, it is better than a 401k that can be raided by the institutionalers when they want some money. Put your money in this and you cannot lose it, unless the bank goes under and in that case for every 200k you have just put the next 200k in a different bank you are covered 100%. Much better than the gamble of the stock market which you will lose everytime.

Ideally, If you do not have an emergency fund there is no need to put money in a 401 (k) just yet. Take the money you would put into a 401(k) and start an emergency fund, then once you are comfortable with that amount then put money into your 401(k).

A lot of people are trying to save for their childrens college education, when they don'r even have a retirement fund. what sense dows it make to putinto your childs education if you are going to be living on the street or or sharing the dorm room with them because you now can not afford your mortgage.

You have to take care of home first. I have resolved that I will be working until I can not work any more. granted I have about 3 months of ememergncy money put away, and with determination my daughter got a full academic scholarship to college, so i can now add more to both my emergency fund and 401 (k) funds. I am in no way near set for retirement, but ai have a plan that i am comfortable with.

I've had a savings account for many years (and had two, at one point). No matter what kind of interest it earns, I keep it (and deposit money in it), as a financial cushion. The money I put into my savings account is there for emergencies or for quick withdrawals. As old-fashioned as this idea is, it's also, as noted above, good financial discipline. Even small amounts ($5-$10, loose change stashed away, gift checks (birthday, holiday, or other occasions), refund checks from companies or other places, or reimbursement for expenses) add up, when deposited in a savings account.

As I read through everyones opinions I have to wonder why everyone seems to think that this whole financial situation is all our fault, what happened to living in the land of the free? having the right to earn and enjoy some of what we make, and we can make as much as we want if we will use our God given talents to do so, through all of this financial mess everyone wants to point there finger at the consumer and the wage earner but they forget to point a finger at our great elected officals, they take on average at least 50% of all we make before we even get to see it and we have no choice but to hand it over to them. If you truely want to do something about your lack of money let's change Washington, everyone is so concerned about living in a Socialist state but can't you see that by reducing our standard of living to just a bare bones menial lifestyle that is exactly what we are doing, we are giving up our freedom to enjoy America because we allowed our elected officials to convince us that this financial situation is all our problem while they continue to spend Trillions of our dollars and still have the nerve to ask for more, when was the last time you saw a Politician take a wage cut or cut back on there lavish lifestyle or our Government tighten there belt, all they do is dig deeper into our pockets, it's not that we don't make enough to enjoy all we want it's that we have to many greedy hands in our pockets.

Save money.
If you have a cell phone get rid of your home phone. Google has free Gmail and free phone/long distance US/CAN service. Also there is magicjack not perfect but is workable. Look on the internet for free tv and movies. Drive a used car and save. Pay attention to politics and try to work as hard to get rid of of the bad politicians at least as hard as you worked to help elect a good one. Get the good ones to put limitations on the number of years they serve and there salaries and benefits. Don't be afraid to try something new when it comes to working, its the only way to find what you like and will do the rest of your life.

What's the big deal about saving? It's nothing more than sacrificing now so you can live better tomorrow. Screw that...nobody's guaranteed tomorrow. I'm going to live my life now the way I want to, and if there even is a tomorrow, I'll be happy that I have that even if I have to work a little harder.

THIS ARTICLE IS A COMPLETE LIE! dont trust anybody with your money. buy

gold. if you cant afford it, buy silver. if you need some cash, sell some metal.

very simple. ive done this for 10 years. ive put in less the $100 per week each

week for those ten years, and today i am a millionaire. You can buy an ounce

of silver today for $25 or less. no excuse not to build your own wealth. Listen

to those who are successful if you'd like to be successful yourself.

Want to earn more than 0.1 - 2% interest?
Pay off anything thats has a higher interest rate (Credit Cards, Mortgage)
Once you have an emergency fund (6 months of Bills, not Income) then paying off debt is like earning that rate (sort of)
Once all your debt is paid off, if you arent already doing it, make sure you are maxed out on any employee matched retirement savings... the rate of return there can be 50% in many places.
We are paying $4000 a month on a $2500 mortgage payment (15 yr, incl Taxes and Ins) so i am saving at 4.5% (the rate) and i am saving a bundle on interest over the life of the loan. The months when i need the cash i just make the 2500 payment. We have no Credit card debt and only one car loan.
I know not everyone can make that kind of payment but the principle is the same...Pay off high CC debt, put away for emergency, max out employeer contributions and live as simply as you can while still enjoying life

It was beneficaial for me to take time to access my situation, see where I was at, and where I wanted to go, and what it will take to get there. I read as much as possible on what is available out there, what are other people were doing to get through each day, and what steps they took to get where they wanted to go.

As far as the future, things are not ever going to be the same, so I have to stay awake and try to see what is happening and evolving. Maybe off the subject, but when I was 40, I decided that the most important thing to concentrate on in my life was my health. If I am wealthy at any age, and not healthy, whats the point. Keeping up with how to stay healthy in this day and age of processed foods(?), can be a almost full time job. I found in the last 34 years, since I started this way of life, that it is a three prong effort to stay healthy; food, exercise, and most important, how I love my self and others.
Not telling anyhbody what to do, just sharing that I am the happiest I have ever been, and it has nothing to do with finances, it has to do with how I feel about my self and the direction I am going. I have been very rich, and I have been homeless, living in a tent in a state park, and my happiness truly was not on the same curve. My main goal today is to treat others how I would like to be treated, and that is one major project, eh?

I don't know about the rest of you all but savings accounts are definitely a thing of the past for me. I have a savings account but I don't have any money to put in it. I plan on going back to school in January and hopefully that will help me land a job that I'll make enough money for a savings account to become a thing again for me in the future.

If you expect people to invest in 401Ks you will have to hire different people to manage the stock market. The present bunch is way too dishonest to trust. We need to go back to the Glass -Seagal aCt of 1933 to prevent the abuses that lead to themrotage fiasco.

Savings accounts a thing of the past? You've got to be kidding! Even if you just manage to put away $5 / month, it adds up!

Plus, my savings account has proven invaluable for making sure I can cover fixed-cost expenses like rent for the next several months with my college financial aid. When I get my FA check, I figure out how much rent money I need for the coming term, then transfer that amount into savings. Then, when it comes time to pay, I transfer a month's worth of rent money back to checking to cover the rent check I've written. That way, I never run-up short and don't overspend.

My married daughter and son in law need budget counseling. How do I find someone to help them. They are always playing catch up and have no savings.

Numerous issues drive down the ability of people to start or continue the practice of saving monies. Its a combination of govermental and banking industries faults for the loss.

o Low rates of interest while senior bank officials get pay in excess of their true worth

o Interests on savings accouts being taxed as income hitting the savers in the pocketbook a second time.

o Inflatonary costs on housing, food and utilities eating away at budgets stressing the need for more available cash.

Those are the three main causes in the collapse of individual savings accounts.
As for why IRAs are suffering again we need to review what the original intent of the IRA was and how Business Leaders have destroyed defined Pension Programs in favor of pushing IRAs onto the labor force.

o 401K as originally developed was for CEO's COO's and CFO's and executives of businesses to use not the workers. The bean counters saw the expansion of the 401Ks as a boon to the companies by substantially reducing pension costs and thrusting the burden of saving for retirement onto the employee often without increases in pay to do so.

o This expansion was unregulated or under regulated by state or federal government in many respects and was endorsed for its money savings gimics for companies and governments at the same time.

So with big government pandering to industries and not protecting the working person. The simple things such as savings accouts became prime targets for plundering by both banks and governments as witnessed by low rates of return and higher rates of taxation on interests.

Lay blame on all politicians and unscrupulous business as well as a uninvoled citizenry. Kids your parents have screwed you.

get real ! i make 9.53 an hour

Everywhere we go, we can save. I can go to Salvation Army and get 10 pieces of clothing for less than $20, somedays even less than $10. Though if you think how much would those 10 pieces really would of cost you? maybe $60-$100 (anymore than $100 is nonsense). So say however much you saved $40- $90, you can put that into a savings acct, because that's how much you're saving. That way its there on a day when you will need the funds and you will be really happy that you did. Also it doesn't have to Salvation Army, it could grocery stores, department stores, anywhere.

I agree that many savings accounts are not worth using anymore. Why allow a bank to basically lend out your money that you have given them in return for next to nothing. I got tired of this and tried to find other options. I found a great alternative that is working amazing for me. It's a high yielding checking account that currently is paying 4.25%, yup not .10% like you are earning in your savings account. There are a couple restrictions you have to meet each month, but I was already doing them so it was very easy for me. The restrictions are: 1) recieve statements online (EASY) 2) Have 1 direct deposit each month (who doesnt recieve their paycheck direct deposit anymore?? 3) Make 12 debit card transactions per month (Who writes checks anymore???) And another perk, they reimburse you for ATM fees. It is a great alternative that you should check out. I calculated that if I had let my money sit idle in my savings account at Chase i would have earned $25 over the last year compared with about $1,000 with this high yield checking account. The bank is American National Bank of Dekalb County in Illinois. Check it out at the link below. This is not an advertisement, but my personal experience.

http://www.anbdc.com/kasasa/cash.html

Simply "cutting back" isn't going to do it. What is going on is that people have a life that takes, lets say $4000 a month to keep up. That's just housepayment, bills, food, and enough gas to get to work. Now they are down to one income or fewer hours.....whatever the case may be. Maybe living on unemployment. So there is no way to fit $4000 worth of bills and expenses into the current much lower amount they now see coming in. Saving a few dollars here and there isn't going to do it. Most people have already given up lattes, eating out and driving anywhere they don't absolutely have to. My neighbors all wear socks with holes and their kids go to school in second-hand clothes and old shoes - even on the first day of school. They got backpacks and supplies from places that donate to "needy" kids. We live in a decent, normal middle-class neighborhood. Not pricey, but decent. There's no place to "save" money from when your $4000 worth of bills has to come out of $1500 a month!!!

Scary to read that only NOW are people 'getting it': we can't live on the edge because the money will always be there. As we've seen the money can stop...I mean really stop. I heard of a lawyer who was used to driving a $100,000 Mercedes and living in a million dollar house, lost those in a divorce, lives in a $4000 mo apartment on the marina, and is worried they will be homeless if he loses his job. Crap! If I had a tenth of what he blew I'd be out of the rat race and retired. But I've been living lean for twenty years, shopping second hand, buying bulk, tucking away every dollar possible in 401k and retirement (money well spent on the market crash), Mr. Budget all the time...and am still being told it won't be enough. Where's the fairness in that? Why the hell didn't I live fast, die young, leave a beautiful corpse? I could have a helluva blowout life for a year, and then it'd all be gone. And then the government will take care of me....yeah, right.

Maybe people don't trust putting their money in banks anymore. I still save, I am just not crazy about the idea of someone else having my money. I know they are fdic insured but, who can really trust anyone in this day in age. I don't trust banks just like I dont trust the government. The only one you can trust 100% is yourself.

I have always been more of a saver than a spender. Like Michele, my parents were very careful to teach me the value of savings and budgeting when I was very young. I worked my way through college, worked hard for scholarships, and spent carefully.

The result? I was able to purchase my home when I was only 24 years old, and I didn't need my parents to co-sign for me. I am by no means rich, but I will admit my down payment was padded by my parents; I hope to pay them back very soon. I don't have cable, I clip coupons, and I rarely get to eat out, but other than our mortgage, my husband and I are debt free.

My basic savings strategy is $50 a month automatically, and then I work extra odd jobs - selling crafts on Etsy, babysitting, and teaching Bellydance. I put this extra money into savings. It's not ideal and I'd love to increase our savings without having to take on more work, but overall, by doing these things our savings has grown without feeling like we're taking away from our lifestyle.

People need better habits. My 19 year old daughter has worked in retail since she was 16 and always banked at least 50% of each check. She pays cash for everything (no debit or credit cards). Her new car and first 2 years of college are paid for. When her friends tease her for the cash only policy she points out her 5 figure bank account.
Bad luck has befallen many, but good habits can cushion the blow.

I have a "savings" account. At my last statement, I was getting 0.10%, that's 1/10 of 1 percent for those of you not comfortable with percentages. This is outrageous and it is certainly a detriment to wanting to save. However, when my checking account gets to a certain amount, I put money in there. When my savings gets to a certain amount, I either get a CD or add the amount to one of my annuities. This will eventually be most of my retirement savings. So....I use the account as a stepping stone to saving money. The banks should offer better rates and not penalize us due to their bad loans, defaults and people with lousy credit.

what always surprises me with articles like these is how so many people don't seem to actually have a budget plan written out... how can you even begin to save money if you don't know where it's going?

I must be a dinosaur, because I still put $ in a savings account. I also have a piggy bank that I put spare change into. Although I can see why people don't bother, because the interest rates on savings and CDs are completely awful (below 1%) Plus some bank fee the hell out of people as well. Also, with the job market being unstable these days, and people being unemployed, it's hard to put money away, when food and paying basic living expenses are the necessity.

The article mentioned how much one would save on taking public transportation. That's fine in one lives in an area where they offer it. Not many rural areas have public transportation.

Everyone can save something if they really want too. Cut the cable, cut the cell phones, cut the expensive coffees, cut the smoking,cut the tatoos, cut the expensive hair stylists, cut the manicures, cut the hardware in your skin, cut the designer clothes, cut the makeup, cut whatever you're doing that is foolish.............

This is probably more an indication of lousy rates and a lack of living wage jobs than anything else. In the past, jobs paid better and there was a better return on savings. These days, if you're lucky enough to score a living wage job, there's little incentive to save as the inflation rate is absurd.

Why bother to save any money, when you are up in age as we are, having to put my wife in nursing home. Now because of her and my retirement pay we don't qualify for her being in nursing home. Check it out on what qualifys a person if they have to go to a nursing home. I couldn't take care of her any longer due to her dementia. Would of been better if we had just blown the money instead of having to pay it out to a nursing home now. So go ahead enjoy what little you make or if you make a lot. Enjoy life while you can.

" as one-third (33 percent) state that they do not participate in any programs such as 401(k), IRAs or retirement plans. One in three (30 percent)"

I would just like to point out that 'one-third' and 'one in three' are the same fraction, so the percents should be the same - not 33% and 30%. Sometimes it's hard to believe the credibility of financial writers when their numbers/statistics are not accurate.

wow this article could not be any more useless and stupid and written by someone who clearly shouldn't be in the finance section. oh and by a WOMAN, which means what she thinks is wrong but since she knows it is her idea it must apply to everyone. CRAP ARTICLE