This is the first report with the new-and-improved personal savings report. On that front...
Why Save? Many Americans Hope For Lottery Win
07:25 p.m Oct 28, 1999 Eastern
WASHINGTON (Reuters) - Many Americans believe playing the lottery is the best way to gain wealth rather than saving over the long term, two consumer groups said in a joint survey published Thursday.
The Consumer Federation of America and Primerica said 40 percent of households earning $35,000 or less saw winning the lottery or a sweepstakes as the means toward a $500,000 nest egg.
By contrast, only 30 percent felt this could be achieved by saving and investing during their working years.
``Despite the economic boom of recent years, one-half of American households have accumulated less than $1,000 in net financial assets and modest or no wealth,' the groups said.
The net worth of most households was also undermined by mounting credit card and other unsecured debt, the survey found. ``The typical household held consumer debts that totaled well over one-half of gross financial assets,' it said.
Most households also did not invest in the stock market, missing out on the boom of the last several years.
``The majority of working Americans have not benefited directly from the rise in stock prices,' said Stephen Brobeck, CFA executive director. ``In fact, more than half of all households hold no stock.'
Earlier Thursday the Commerce Department reported the U.S. personal savings rate at 2.1 percent of take-home pay in the third quarter, down from 2.5 percent in the prior quarter.
Economists have fretted for years about the low U.S. savings rate, which some fear could make highly indebted consumers more vulnerable to a sudden economic downturn. |
