3.5 Challenges to Saving

What percent of Americans would cover a $400 emergency with cash (or an equivalent)?

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Match the Summary with the resource:

VIDEO: 3 Sneaky Tactics that Websites Use to Make You Spend

CARTOON: Present Bias

ARTICLE: How Social Media Can Impact Your Financial and Mental Health

INFOGRAPHIC: Saving for Sooner

Groups:

(a) Video

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(b) Article

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(c) Cartoon

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(d) Infographic

• Families save but spend it later, ending with no savings.

• Websites use games, deals, and plans to get people to spend more

• People care more about rewards now than later.

• Social media makes us buy things we don’t really need.

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What is one reason it is hard to save money?

• Because expenses often exceed income.

• Because saving money is illegal.

• Because banks do not allow savings.

• Because people do not want to save money.

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Why Does Saving Seem Hard? It can be hard to build up a habit of saving when there are so many factors encouraging you to spend. Which of the following is a common challenge to saving, as described in the resources listed?

VIDEO: 3 Sneaky Tactics that Websites Use to Make You Spend

ARTICLE: Do People Really Spend More With Credit Cards?

CARTOON: Present Bias

ARTICLE: How Social Media Can Impact Your Financial and Mental Health

INFOGRAPHIC: Saving for Sooner

• Websites using games to make you spend money

• The ease of spending money online

• The advertising on social media

• The simplicity of using cash over credit cards

How long does it take households with an annual income over $200,00?

INFOGRAPHIC: Who Has Enough Cash to Get Through the Coronavirus Crisis?

• About 2 months

• Around 7 to 8 months

• More than 2 years

• About 6 months

What percentage of Americans would pay for an unexpected $1,000 cost from their savings?

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CCSS.6.RP.A.3C

The disadvantages of borrowing to cover an unexpected expense include:

• Paying interest and fees, which can increase the total cost of the expense.

• Receiving free money with no obligation to repay.

• Improving your credit score automatically.

• Eliminating the need for budgeting in the future.

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It takes families with lower incomes longer to save one month of expenses because:

• They have less money left over after paying for necessities.

• They have higher incomes to save more quickly.

• They receive more financial support from others.

• They have fewer expenses than higher-income families.

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Based on the graph, which costs have risen the most since 2000?

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Wages have risen by how much since 2000?

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CCSS.6.RP.A.3C