VALLEY FORGE, PA — A new consumer survey by Vanguard reveals that 71% of Americans are planning to prioritize emergency savings this summer, reflecting a rising focus on financial flexibility. However, despite these intentions, many face barriers to effective saving. The survey showed that 28% feel they lack the time or funds to save, while 24% are unsure how to begin.
“There is a clear desire to save, but plans don’t always translate to action since many consider creating a savings strategy to be daunting,” said Matt Benchener, Managing Director of Vanguard’s Personal Investor business. “Saving is essential to overall financial well-being, so it’s crucial to tackle the actual and perceived barriers to saving.”
Findings Highlight Savings Obstacles and Concerns
The survey highlights a disconnect between Americans’ savings goals and their challenges:
- 67% are uncertain about sticking to a savings plan amid market volatility.
- 63% expect to overspend on basic or unexpected costs this summer, such as groceries, utility bills, or medical expenses.
- 64% admit they do not completely understand how interest rates impact their savings.
Despite these concerns, nearly half of respondents continue to rely on traditional savings accounts, which offer an average yield of just 0.42% according to the FDIC.
High-Yield Options Offer Solutions
To address this gap in savings efficiency, Vanguard is promoting its Cash Plus Account, a high-yield savings option currently offering 3.65% APY—more than eight times the yield of traditional accounts.
“There is no minimum amount needed to begin saving, so you should make sure that for every dollar saved, you are earning the returns you deserve by leveraging a high-yielding savings vehicle,” said Kate Byrne, Head of Vanguard Cash Plus Distribution.
Vanguard’s findings emphasize the importance of starting small but saving strategically. Summer may be a season of spending, but for many Americans, it is also shaping up to be an opportunity for rethinking long-term financial preparedness.
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