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One thing that can help stop the savings crisis in America

first_imgThe savings crisis is not waving the little white flag anytime soon. Americans face a barrage of financial obstacles in today’s economy: stagnant wages, low interest rates, and a painful absence of financial literacy. The situation is so dire many Americans believe they won’t ever be able to leave the workforce. They survive paycheck to paycheck. However, all hope is not lost. One simple maneuver is helping millions of working Americans save for their futures.In a perfect world, parents and the education system would teach personal finance to every boy and girl. Our children would grow up being taught good savings habits, applying those lessons throughout life to improve their financial situations. Unfortunately, reality is quite different. Many parents are afraid to talk about money, and while some schools are now teaching personal finance, bureaucracy hinders a more national impact. As a result, we’re left with a country filled of financial illiterates — where nearly half of Americans save virtually nothing.What’s the solution? Make saving money the default decision. When faced with a choice on a seemingly complex subject such as money, many individuals often take the default or “no decision” choice. In the case of voluntary savings plans, which requires participants to take action in order to save money, the “no decision” choice is a decision not to save. 401(k) plans are the most popular example. One quarter of employees don’t even save enough to receive the employer match, missing out on $24 billion of practically free money every year. continue reading » 27SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more