New Jersey Saves Week Encourages Savings to Build Wealth

New Jersey Saves Week Encourages Savings to Build Wealth

February 22, 2007 
Sparta Independent

Sussex County — When it comes to saving money, Americans don’t do very well.

The typical American household has less than $100,000 in net wealth, including home equity and 401(k) plan accumulations, and only about $10,000 in net financial assets. Lower-income families have far fewer resources.

In addition, the national savings rate is a negative number: minus 1 percent during 2006 to be exact. This, the lowest savings rate in the U.S. since the Great Depression, coupled with prices of homes and securities that are basically stagnant, suggests that Americans are moving backwards in terms of household wealth.

Enter America Saves Week. Led nationally by the Consumer Federation of America, America Saves Week is designed to increase awareness of the need to save money, reduce debt, and build wealth.

The primary focus of the week is financial action in the form of personal commitments to build wealth. Through the power of compound interest, even small dollar amounts can grow to significant sums. Save $50 a month with a 5-percent yield, for example, and you’ll have almost $30,000 after 25 years.

America Saves Week is a week-long campaign to promote savings for future financial goals, particularly by low and moderate income U.S. households. It will run from Feb. 25 to March 4, through the efforts of participating Saves campaigns in cities, counties, and states around the United States.

New Jersey Saves Week is being organized by the New Jersey Coalition for Financial Education. It includes information and events designed to promote savings by New Jersey residents, including free financial programs for consumers conducted by NJCE member organizations and promotion of the direct deposit of tax refunds at volunteer income tax assistance sites.

A New Jersey Saves Week Web site with information about savings and related topics will be available year-round and a week of special events to promote savings will be conducted annually. For further information and a calendar of New Jersey Saves Week events, visit www.njsaves.org.

The objectives of New Jersey Saves Week are to create an awareness of personal finance topics, especially the need for regular savings, and encourage New Jersey residents to enroll as American Savers.

The week will also increase visibility for the New Jersey Coalition for Financial Education and its member organizations, many of whom offer financial education programs to state residents on a year-round basis.

The New Jersey Coalition for Financial Education promotes improvement of the personal financial literacy of New Jersey citizens of all ages. Its members believe that all citizens of New Jersey must have the financial literacy necessary to make informed financial decisions.

The Coalition meets every other month in a central New Jersey location and consists of about 100 representatives of state government agencies, schools, businesses, and non-profit organizations that provide financial education and related services.