When one talks about the United States of America (USA), the picture is always the land of opportunities that flows with milk and honey. The United States is often used as a marking scheme for the rest of the world when it comes to quality of life.
But a survey on the State of Personal Finance in America 2022 gave a different perspective when it comes to the savings culture among Americans. According to the survey, 36 percent of Americans have absolutely no savings, contrary to what many believe.
19 percent of Americans have less than 1,000 US Dollars in their bank accounts while about 45 percent of Americans have at least 1,000 US Dollars or more in their bank accounts. The survey also found out that many Americans survive on loans.
The subject of the savings culture does not affect Americans alone. In Kenya, for instance, the government has been pushing for Kenyans to develop a savings culture and save more. Around 86 percent of Kenyans have nothing saved for the future.
To force Kenyans to save, the government petitioned for an increase in the monthly National Social Security Fund (NSSF) from 200 shillings to 2,160 shillings. Despite the protests, the government hopes that this will increase savings among Kenyans.
Just like the Americans, many Kenyans say that they would love to save but there is simply nothing to save as the ever-rising inflation as well as the high cost of living strains their empty pockets. To them, it is not a matter of when they should save but where to get what to save.
The Covid-19 pandemic also made many people deplete their savings. Many lost their jobs and had to fall back on their savings for survival. Those who did not have savings had to rely on their business most of which collapsed and have never recovered.