NEW YORK, Aug. 16, 2018 /PRNewswire/ -- A combination
of lack of knowledge and poor financial habits is hindering
Americans from saving effectively, according to research from
PurePoint® Financial, a hybrid digital bank and division
of MUFG Union Bank, N.A.
The research found that half of Americans do not have a savings
target set within the next five years, and more than one-third
would prefer going in to debt for a large purchase over employing a
savings strategy to make the purchase. However, this does not
necessarily mean consumers do not want to save – more than 40
percent say they do – but they don't know where to start.
"Our hope is that the learnings from our research serve as an
inspiring wake-up call to the majority of Americans who could make
more on their hard-earned money," said Pierre Habis, President of PurePoint Financial.
"PurePoint's mission is to help Americans become better savers, and
having a savings goal is an important first step. Envisioning a
vacation, car, or down payment on a home can be motivation for
consumers to start setting money aside regularly and avoiding
impulse buys that can lead to debt and derail their goals."
To reach this mindset, Americans will have to start making a
routine commitment to not miss out on free money. According to the
findings, 65% do not realize the benefit of incremental gains from
keeping money in a high interest savings account. About 4 in 10 of
respondents believe their checking account and savings account have
the same interest rates. In fact, respondents reported having
nearly $5,000 sitting in a checking
account or digital wallet, where their money accrues little or no
interest.
More proactive saving habits would make Americans less
vulnerable to their own consumer desires. More than three-quarters
(76%) of those surveyed reported they had been derailed from
savings goals; apart from necessary expenses (health issues,
repairs, or job loss) impulse purchases are major savings
obstacles, even those as simple as over shopping at online or at
big box stores; or buying something because of an ad seen online or
on social media.
"Paying yourself first, and routinely, is key to staying on
track to meet your savings goals and not being swayed by
surprises," said Maha Madain, Head of Enterprise Marketing for
PurePoint Financial. "Adjusting your direct deposit to move a fixed
amount to your savings account from every paycheck can make a big
impact."
Millennials could stand to take this to heart, especially
compared to other generations. Eighteen to 34- year-olds are three
times more likely than Boomers and twice as likely as GenXers to
have their short-term savings derailed by an impulse trip/vacation,
and almost 40% of millennial respondents think going in to debt is
easier than saving for a large purchase.
"Financial goals take time and effort to achieve – we want to
help Americans grow their savings together, so that as a country,
we're ultimately saving 10 percent of our income annually," Habis
said.
Research was gathered through an online survey of 2,200+ adults
in the U.S. (aged 18+), commissioned by PurePoint and produced by
independent research firm Edelman Intelligence. Data was collected
July 18-19, 2018 and was weighted to
be nationally representative.
About PurePoint Financial
PurePoint Financial is a
division of MUFG Union Bank, N.A., a proud member of the Mitsubishi
UFJ Financial Group (MUFG), one of the world's leading financial
groups. As the next evolution in the financial services industry,
PurePoint® Financial is the modern way to save − online,
over the phone or in person. PurePoint offers market-leading CD and
savings rates, no monthly fees and all the flexibility and
convenience of online banking with 24/7 access from your computer,
tablet or mobile devices. PurePoint also offers Financial Centers
at select locations staffed by knowledgeable team members who are
committed to delivering exceptional experience.
About MUFG Union Bank, N.A.
As of June 30, 2018,
MUFG Union Bank, N.A. operated 355 branches, comprised primarily of
retail banking branches in the West Coast states, along with
commercial branches in Texas,
Illinois, New York and Georgia, as well as 22 PurePoint Financial
Centers. We provide a wide spectrum of corporate, commercial
and retail banking and wealth management solutions to meet the
needs of customers. We also offer an extensive portfolio of
value-added solutions for customers, including investment banking,
personal and corporate trust, global custody, transaction banking,
capital markets, and other services. With assets of
$123.8 billion, as of June 30, 2018, MUFG Union Bank has strong capital
reserves, credit ratings and capital ratios relative to peer
banks. MUFG Union Bank is a proud member of the Mitsubishi
UFJ Financial Group (NYSE: MUFG), one of the world's largest
financial organizations with total assets of approximately ¥299.1
trillion (JPY) or $2.7 trillion
(USD)¹, as of June 30, 2018. The
corporate headquarters (principal executive office) for MUFG
Americas Holdings Corporation, which is the financial holding
company, and MUFG Union Bank, is in New
York City. The main banking office of MUFG Union Bank is in
San Francisco, California.
1 Exchange rate of 1
USD=¥110.5 (JPY) as of June 29,
2018
View original content with
multimedia:http://www.prnewswire.com/news-releases/purepoint-financial-research-finds-americans-lack-knowledge-around-short-term-savings-300697918.html
SOURCE PurePoint Financial