The following is an excerpt from the 2009 ABA Connection, authored by Sam Braunstein. The full article is available as a PDF file here.
We all know that saving money is essential to a sound financial plan. But alas, when it comes to saving, as with so many other endeavors, knowing the right thing to do is often a lot easier than actually doing it. And so it is with many individuals and families in the United States.
Most estimates put the personal savings rate in the United States at no more than 1 percent of income, a level that dismays most economists. That trend is occurring at a time when many people are facing the double demands on their financial resources of sending children to college while trying to save up for their retirements.