Why people do not save money, and how to change that

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  • Wayne Rout El Paso, TX
    Dec. 26, 2012 8:41 p.m.

    Taxes are a big reason, but not the only one.

  • patriot Cedar Hills, UT
    Dec. 13, 2012 1:48 p.m.

    how to save money today?? Well maybe move to South Carolina and brew some Moonshine!

  • Bill Shakespeare Salt Lake City, UT
    Dec. 13, 2012 9:26 a.m.

    Saving isn't cool.

  • OLD-GUY Central, Utah
    Dec. 4, 2012 1:21 p.m.


    Layton, UT

    I agree, I don't have a smart phone, RV, ATV, and havn't been on a vacation in years, my old computer is 5+ years old and I eun XT which still works for me. I guess it is not as fast nor does it do some of the fancy games (which I don't have or play). Too bad the world is not "old fashioned" like my grandkids think I am.

    Government has the same problem .... Almost everyone has a smartphone, computer 4x4 etc. when
    the world seems to have survived with less for years. They to are victims of "need to spend" or lets have good office furniture, I think they call it modernizing.

  • Screwdriver Casa Grande, AZ
    Dec. 4, 2012 1:04 p.m.

    When financial advisers tell you NOT to pay off your house, something is wrong. The other thing that affects a large number of people is the lack of protection of that home equity.

    Bush's changes to the bankruptcy laws made it easier for dishonest lawyers to go after your house after a frivolous lawsuit or outrageous medical bills. Why pay off a house if some lawyer will just see it as a bag of gold to go after?

    Other than that people should own their homes. Nothing would stimulate the economy and savings like people not having mortgages to pay.

  • Third try screen name Mapleton, UT
    Dec. 4, 2012 1:01 p.m.

    Let's face it, between the Fed and the Washington printing press our money is worthless.
    Wall Street lives on a bubble of speculation.
    We might as well invest in the lottery.
    I paid off my house 12 years ago and my taxes are more than my mortgage used to be. And they say it will be a decade before my house is worth what it was in 2005. We have been duped by the experts.

  • raybies Layton, UT
    Dec. 4, 2012 12:47 p.m.

    I love the opening story. It made me think of the number one thing I think that most people spend too much money on these days... Their smart phones, Ipods, computers and internet devices!!! Cell contracts, Monthly Data Rates, Internet, Wi-Fi, plus all the accessories required to customize them, the cases to protect them, the upgrades, online hosting of data and images, and all those really cheap aps... it's all a great way to weedle away your wealth on things you probably could do without. Makes one wonder how we survived before we had them.

    I live in an area of lowincome housing, and have been in the homes of many of them, and more often than not they have smart phones, but then they somehow don't have the means to feed their families.

  • OLD-GUY Central, Utah
    Dec. 4, 2012 12:42 p.m.

    I saved some in the past, but have lost much of it and my retirement of $775 a month just doesn't cover my current expenses and allow savings. House, car, food , medications & utilities take it all and we are very conservative in each. What do you propose we give up, maybe eating and that would eliminate the other expenses.

    I received medication yesterday, 180 pills, cost $822.37 ! With prices like that how can anyone with modest income save?

  • Sasha Pachev Provo, UT
    Dec. 4, 2012 12:11 p.m.

    A savings interest rate of 1% is hardly a motivator to save especially if you have to pay taxes on it. This is a joke and a mockery. Mortgage interest is tax-deductible, it should not be. Instead part of the principle payment should be if we want to encourage home ownership. Long-term savings at least up to a point should be tax-deductible, not just tax-deferred.

  • SEY Sandy, UT
    Dec. 4, 2012 12:08 p.m.

    As long as Keynesians rule the monetary system, banks will never be a place for anyone to save. Right now, the best it can offer is to help risk averse people from losing money in the market. The Federal Reserve has robbed us of the opportunity to enjoy a decent rate of return in savings accounts. For some reason, they have a delusional belief that money in savings accounts just sits and does nothing. Lowonoil is right, the "experts" want us to spend until it hurts, and to make it possible, they've taken away all incentives to save. We live in a world where the experts have everything upside-down and backwards (to their own benefit, I might add).

  • Lowonoil Clearfield, UT
    Dec. 4, 2012 11:42 a.m.

    Save money? I'm confused. All the other experts are telling us to spend until it hurts for the salvation of the U.S. economy. Why do these people hate America?

  • SEY Sandy, UT
    Dec. 4, 2012 11:02 a.m.

    @toosmartforyou: I suspect you aren't aware of how interest rates are set on savings accounts. Banks have their hands tied by actions of the Federal Reserve. If you want to find the villain in this story, start learning about how the Fed manipulates interest rates and why. Be prepared to take a journey down the rabbit-hole!

  • Ultra Bob Cottonwood Heights, UT
    Dec. 4, 2012 10:58 a.m.

    I’m always suspicious of people who tell me how to spend my money. I’m a thousand times more suspicious when that person is representing business.

    I believe that Social Security came about as a way to delay people’s spending to a later time in their life. Because it was a forced delay in spending the people benefited. However I also believe that the Social Security delay in spending has beneficial results for business. And even caused a shift in the competition for the people’s money because old people spend money on different things than young people.

    The pendulum seems to have swung away from the safe/sure savings like Social Security toward the gambol of having more money than you originally put away. I feel the intense popularity and need for lotteries and ways to win are a symptom of the frustration and lack of confidence in our economy. Rather than work and education, success in life has better chance if you win a lottery.

  • toosmartforyou Farmington, UT
    Dec. 4, 2012 10:26 a.m.


    I suggest financial institutions treat their customers fairly and give them a decent rate of return for the money they deposit. How they can look a customer in the face and say their interest rate on savings is less than a half of one percent, while charging 20% + or so on a credit card simply is something I cannot understand, particularly how they can do it with a straight face themselves.

    But as observed, business and ethics are exclusive when it comes to money in almost every instance. There are exceptios, of course, but not any that involve banking institutions.

  • wsmart Goshen, IN
    Dec. 4, 2012 7:50 a.m.

    I've had a specific IRA account for the past 10 years. Each year the interest earned is less than the account fees charged. What a GREAT savings plan! No wonder people have little incentive to "save" when the FED sets the interest rate at 0%. At the current CD rate of about 1 to 2 percent return, your deposit today of $1000 will double to about $2000 in 36 to 72 years, not factoring in inflation and taxes. Consider this, with a reasonable return rate of 6%, this same deposit would be $32,000 to $64,000 (32 times greater or more) over the same time period.

    Here is another thought, if you retired today with 1 MILLION and had it invested at current CD rates you would have a monthly income of only about $830 to $1600 per month without drawing down your principal.

  • carman Wasatch Front, UT
    Dec. 4, 2012 7:38 a.m.

    Most people in my opinion have never felt the success of investing, largely because they have never learned how to successfully invest. Once you have felt the success of receiving quarterly dividends, and have seen your principle multiply steadily over many years, the benefits of saving and wisely investing are obvious. The best way to learn is when you are young and time is on your side. We helped our children set up accounts to invest part of their savings in blue chip stocks. As they have participated in the profits of these solid companies, they have lost some of their fears of volatility that often stem from ignorance, and have seen their savings multiply, even in tumultuous markets.

  • carman Wasatch Front, UT
    Dec. 4, 2012 7:19 a.m.

    So too smart:

    Who do you suggest should set interest rates? You. The government? Ok, maybe the market IS best...

  • BrentBot Salt Lake City, UT
    Dec. 4, 2012 7:07 a.m.

    No prudent person will put their money in savings in a climate of one-half percent on interest and "quantitative easing" which is debasing our currency by printing money to pay down the debt. We should be investing in foreign currencies (Australia, N.Z., and South Africa) which have natural resources to back their currency, gold or silver, or in food production, and/or energy companies.

  • toosmartforyou Farmington, UT
    Dec. 3, 2012 11:06 p.m.

    I didn't read the entire article but there are two things that come to mind regarding this subject:

    1) Why do we have to declare intereast on savings as income on our tax returns? Uncle Sam is placing a damper on the practice of simple saving accounts. Tax investments, not basic safety-net savings accounts.

    2) Why do financial institutions get to charge exhorbitant interest rates on credit cards, yet for savings they play LESS than a half of a percent? That's immoral!! (Legal, but immoral.) I guess it's "because they can" or because it's "smart business." (Clinton and Scrooge.)

  • SillyRabbit Layton, 00
    Dec. 3, 2012 8:21 p.m.

    The first datum presented surprised me. Not even $1000 saved for a financial emergency?? And that's 64%? No wonder the media can sell fear about the "fiscal cliff."

    Good report, Mr. De Groote. Get them to fix the main page headline, though: "...how to change that can be changed" ?