Investing for your future

       By: Emily S.

Everyone, no matter their age, should invest for their future. But sadly, saving is no longer a priority. Currently, the rate on personal savings in the United States is one of the lowest in the world. In the 1980s, personal savings rates were a low 8.2%. This means that only 8.2% of people in the United States actually saved money. But in the late 1990s, the savings rate for citizens of the United States decreased and eventually dropped to less than 1%. This was caused by a growing economy and people starting to become very comfortable with the idea of borrowing money to purchase items that they could otherwise not afford.

Borrowing money instead of saving it seems to be a longstanding trend that even the U.S. Government is supporting. The national debt is steadily rising. Each U.S. citizen's share of the national debt is an average of $29,149.18. The national debt increases by approximately $1.84 billion per day. A bank representative from Bank of America, Doug Wilson, said “Saving money for your future is always important. Having savings will help you purchase a house or a car, or any other things you need to live your life.”

According to the Smart Student Guide to Financial Aid, “Parents should expect to pay at least half to two-thirds of their children's college costs through a combination of savings, current income, and loans.”  This means that many teens may be expected to apply for student loans, so that their parents can afford for them to go. If teens do not develop good savings habits, they will be starting a cycle of debt that could last their whole life. Despite the financial difficulties you may encounter with paying off debts, it’s very important to go to college. “Statistics show that a person with a college education makes more money in their life than some one without one. Basically, going to college is very important in helping you to find a good job,” said an employee from the United States Census Bureau.

There’s something called a college credit card that has become a massive necessity for students. These efficient devices are used primarily for emergencies, education-related expenses, or travel costs.” Students figure: I'll live like I want to now and then when I get a job it will be easy to pay it back. It’s not as easy as they think," says Gerri Detweiler, education Adviser for Debt Counselors of America. Since so many student credit cards have high annual percentage rates, the longer these students wait to pay the cards off, the worse it gets. If students fall behind in their payments, they get slammed with high late fees. And it's easy for things to get out of hand.

The Bureau of Labor Statistics has shown the tuition portion of the Consumer Price Index (CPI), has increased by approximately 8% annually from 1979 to 2001. This is higher than current interest rates. So saving for college will be more important than ever. Teens will need to learn the value of saving as soon as they start working because they will need to save for their retirement. Due to all of the financial mismanagement and borrowing from the Social Security System, there will be very little funds left for future generations of Americans to rely on for their retirement. So, individual Americans could possibly be solely responsible for funding their own retirement plans.

Some easy ways to start saving for the future are stock investing, mutual funds, penny stocks, real estate investing, starting a business, Forex currency exchange, etc. There are many different ways you can use to meet your financial goals.

(http://www.bls.gov

http://www.online-investing-tips.com

http://www.nobscot.com/survey/index.cfm)