Question

Why do most Americans have financial insecurity?

Answer 1

Americans have financial insecurity because of a low rate of personal saving and poor financial planning.

Explanation:

Most of the Americans strive in building financial security for themselves. A study by Institute for Women’s Policy Research figured out that one in 3 adults could not afford basic expenses, namely housing, food and childcare. This makes them incapable in financially preparing for future money goals, like retirement or for emergencies.

This happens majorly because the personal saving rate is very less and spending money more than that of they earn.

The following ways would help in overcoming the financial lack or insecurity,

• Set up a budget that would match the income and monthly spending
• Identify and eliminate debt - Majorly suggested way to tackle debt is the “snowball method,” (focus on the smallest debts first)
• Automate your savings - Create an emergency savings account
• Invest intelligently - this would help in upliftment of the future finances
• Secure your family’s future - invest in insurance (life insurance, health insurance)