Three out of 10 American households do not have a savings account and another 1 in 10 do not have a checking account, according to a new survey by the FDIC, Federal Deposit Insurance Corp.
More than half the respondents said they believe they do not have enough money to warrant having an account or that they do not need or want an account.
How tragic. Not having the vehicle to save—the savings account—makes it hard to make basic financial transactions to save and build wealth, or access credit on fair and affordable terms.
The survey also shows that 25% of households have used an alternative financial service—a payday loan or non-bank check cashing service. And, nearly 12% of households have used one of these services in the past 30 days.
When FDIC did the first survey 2 years ago, it was the most comprehensive look at the unbanked and under-banked households ever undertaken. About 820,000 more households became unbanked since the first survey.
Banking and learning to save money are learned habits. Do you have a savings account set up for your children and/or grandchildren? It’s never too early!