Key Words: Suze Orman says, ‘We’re heading downhill very fast,’ unless employers start providing this critical benefit to their workers

by | Dec 4, 2022 | Stock Market

Americans trying to save some cash for unforeseen expenses are up against a lot — months of red-hot inflation, wages that don’t keep up, the sheer difficulty of delayed gratification in a time when people spend billions of dollars online in one day. It’s hard to put money aside for a rainy day. Indeed, personal-finance guru Suze Orman has this to say about saving: “It takes an extraordinary human being, seriously, to say, ‘I’m taking this much money out of my paycheck and I’m going to put it in an emergency savings account and not touch it.’”

“‘It takes an extraordinary human being, seriously, to say, ‘I’m taking this much money out of my paycheck and I’m going to put it in an emergency savings account and not touch it.’”

— Suze Orman

She does not hold out much hope for people doing that, especially when there is so much pressure to keep up with the latest trends, and complete the holiday gift shopping. “It won’t happen, it has never happened and unless employers start to help employees do that, we’re heading, really, down hill very fast,” she said. Regrettably, Americans’ lack of savings is not a new problem. Around two-thirds of Americans said they could use cash, savings, or a credit card paid off at the next statement to cover an unplanned $400 emergency expense, according to the Federal Reserve’s annual survey on financial wellness. The findings were released in May, based on research done even earlier. The savings rate has not been helped by the end of pandemic-era government benefits. In September, the personal savings rate was 3.1%. A year earlier it was 7.9%, according to numbers from the U.S. Bureau of Economic Analysis. Now for the good news from Orman, who as speaking Tuesday at a panel run by the Bipartisan Policy Center: If employers did help hook up employees with emergency savings accounts, Orman thinks many workers would take up the offer for easy access to an emergency savings account. And they’d also likely reserve the cash they are putting aside solel …

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