SAN FRANCISCO, CA--(Marketwired - August 29, 2013) - SaveUp (www.saveup.com), a national online financial rewards program for saving and paying down debt, today announced the findings of its August U.S. Consumer Savings and Debt Report. The study found that across the United States, the average consumer's invested assets balance increased by $369.64 in July, primarily due to a strong performing stock market. This rise in assets spurred consumers to increase their credit card spending by an average of $68 month over month and reduce cash contributions to short term savings by approximately $52 in July alone.
Those individuals with high market exposure primarily benefitted from the strength of the July's market. Last month, the Dow Jones Industrial Average, S&P 500 and Nasdaq were all up 4.12%, 5.09%, and 6.56% respectively. The average 401k, Taxable Investment and Money Market account all increased in July as shown in the table below.
Average Balance +/-
As a result of the strengthening markets, consumers' invested asset value rose, sparking short term spending. Americans immediately resumed credit card spending (balances increasing by an average of $68) and reduced cash contributions to short term savings by $52.
"While increased consumer spending is a sign of financial recovery, if Americans focus their spending on credit cards while reducing short term and emergency savings, we may reenter the pattern of overleveraged spending that led to 2008's unstable economy," says Priya Haji, the CEO of SaveUp. "We need to encourage a recovery where consumer spending and investments increase in tandem without incurring additional short term debt. This relies on increasing real wages. We don't want to see Americans regain spending at the sacrifice of longer term financial security."
Immediately following the worst of the recession, SaveUp saw Americans adopt savings habits at an unprecedented rate -- with the U.S. savings rate increasing to 8.7 percent in December 2012. Since December of last year, savings rates have declined to near pre-recession rates, below 5%.
The SaveUp U.S. Consumer Savings and Debt Report analyzes current savings and debt levels of its user base and makes monthly comparisons pulled at least 30 days prior and no more than 90 days prior to the stated month. This month's report is based on the data of a representative sample of more than 30,000 SaveUp users' savings and debt balances.
Founded in 2011, San Francisco-based SaveUp is the first free nationwide rewards program that encourages Americans to save money, pay down debt and make positive financial changes. By partnering with major consumer brands and financial institutions, SaveUp gives users the opportunity to win exciting prizes for performing positive financial actions. Individual user information is secure on the site with bank level encryption. Intuit provides the back-end aggregation technology and SaveUp has completed a bank-level security audit.
To get rewarded for your positive financial actions or to partner with SaveUp as a bank or sponsor, please visit us at www.saveup.com.
- Account balances for each type of account mentioned represents the average account balance for participants in the data set who have that particular financial vehicle. Not all participants in the data set have every type of financial vehicle mentioned.
- T Rowe Price
- US Department of Commerce