smart spending

Cut back on spending?

 

 

[Begin VIDEO with Kristin Arnold, Bankrate.com anchor introducing the video topic]

Kristin Arnold: There continues to be a tremendous amount of uncertainty about the economy. So how are consumers reacting? Bankrate.com is out with the monthly Financial Security Index and here with insights is Greg McBride, senior financial analyst for Bankrate.com.

[Cut to a double screen of Kristin Arnold and Greg McBride]

Kristin: The economy greatly depends on consumer spending, so what did you find?

Greg: Forty percent of Americans say they've cut back on their spending in the last 60 days due to the rollercoaster stock market or concerns about the economy, and this was pretty even across all income groups. Now, this type of widespread cutback in consumer spending, if its sustained for any length of time, that's how recessions are born.

Kristin: And how are Americans feeling about their overall financial security?

Greg: We did see a slight rebound from August, which was dreadfully low, but Americans are still feeling less secure relative to 12 months ago; no matter which component of financial security you look at ... whether it's jobs, savings or debt. Now, one example of why people feel this way - among American aged 30 and over, more people report lower net worth compared to last year than higher net worth.

[Cut to one shot of Kristin on camera]

Kristin: Hopefully the economy and consumer confidence will start to shift in a more positive direction. Thank you Greg ... and to read more about the September Financial Security Index - just log onto Bankrate.com. I'm Kristin Arnold.

[END VIDEO]

« Back to the September 2011 Financial Security Index.

 

 

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