Nearly 40 Percent Put Savings First
If you think Americans are good at stashing away money for a rainy day — think again. A GOBankingRates study on savings found the majority of Americans don't have more than $1,000 put away for a rainy day.
Yet, a whopping 38 percent of people taking part in this survey would take a $10,000 windfall and put it directly into savings. Interestingly, 40 percent of women vowed to put their money into savings versus 37 percent of men.
Among all age groups, people aged 18 to 24 were most likely to save the money, with 44 percent selecting this option. Americans aged 45 to 52 were least likely to save the money (32 percent). However, 27 percent of that age group said they would rather put $10,000 into their current home or a new home, and another 20 percent said they would rather invest the money — both great options for growing wealth.
While having $10,000 in the bank is a great way to manage emergencies, it isn't liable to keep you from going broke in retirement. Only 17 percent of all respondents said they would invest in stocks or mutual funds, and another 5 percent said they would put the money into a certificate of deposit. This finding is striking because more than half of Americans will retire broke, according to a recent GOBankingRates survey.
Across all age groups, respondents aged 35 to 44 were the least likely to choose to invest (13 percent), versus respondents aged 18 to 24 (20 percent) and 45 to 54 (20 percent). For younger Americans, getting ahead on retirement savings is pivotal with the uncertain future of Social Security. Even for middle-aged Americans, investing for your golden years is important, as cost of living, medical costs and emergencies can quickly erode retirement savings.
Read: 40 Social Security Tips for 2017