Young Adults Are Not 'Feeding the Pig'

At a time when many Americans are reining in their spending, the savings mantra for too many young adults seems to be "when pigs fly."  

A new survey by the American Institute of Certified Public Accountants reveals that many 25- to 34-year-olds are not taking the most basic steps to save money. Conducted by GfK Roper, the survey shows:

* Half (51 percent) of young adults polled contribute 5 percent or less of their income to savings each month.

* Of those respondents, a startling 25 percent do not have a savings account or contribute nothing to an existing account.  

"Financial planning should be a top priority for adults in this age group, particularly in an uncertain economy like the present one," says Carl George, chair of the AICPA's National CPA Financial Literacy Commission. "The survey results underscore the need for specific ideas for young adults about how to spend within their means and save for the future."

The AICPA and The Advertising Council have unveiled an updated and expanded national public service campaign called Feed the Pig. A reference to the traditional piggy bank and, thus, savings, Feed the Pig educates 25- to 34-year-olds about their personal finances and offers guidance on how they can manage their money.

The new public service announcements featuring Benjamin Bankes, the campaign's icon, may be viewed at www.FeedthePig.org. The Web site provides savings calculators, interactive tools to change spending and saving habits, and podcasts with tips like these to boost savings:

* Brown bag it. According to the survey, adults between the ages of 25 and 34 are significantly more likely than the general population to say they could never give up dining out (26 percent versus 16 percent). But saving $7 a day for 365 days per year over 10 years equals $25,550.

* Scrutinize spending. A third (34 percent) of 25- to 34-year-olds surveyed say they have made little or no changes to their spending habits in spite of the economic downturn. Small steps such as making coffee at home, drinking tap water and cutting out ATM fees can save at least $5 a day or $18,250 over 10 years.

* Eliminate extras. Many 25- to 34-year-old survey respondents indicate they would have a tough time parting with indulgences including cable TV (30 percent) and vacations (18 percent). But saving $50 per month on cable bills totals $6,000 over 10 years.

For additional money-wise tips visit www.FeedThePig.org.

Courtesy of ARAcontent

  

  

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