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Current Event: Economic Concepts - Essay Example

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Summary
Savings are incomes not spent or can also be deferred consumption and it is done through putting the money in a bank or any other safe place.
Michele…
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Current Event: Economic Concepts
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Current Event: Economic Concepts

Download file to see previous pages... The research also found out that 38% of the total population interviewed, had made budgets and were planning to stick on them which was an improvement as compared to the 23 % who had decided that in the previous year (Michele, 2014).
However as much as the interviewed people wanted to improve on their savings, most of the respondents had not made any changes to the strategies of saving they used. The respondents presented different strategies of saving that they were planning to use in the year in order to increase their savings. The research done compared the previous and current year and compiled the comparison. 53 % of people were planning to soak away more of their paycheck as compared to 51 % of the people who wanted to do the same in the previous year (Michele, 2014). The number of people who were planning to save at least part of their tax refunds was 26% and was equal on the two years compared. There was a reduction on the number of people who wanted to cut back on luxuries in order to save with only 21% of the respondents planning to do this as compared to 23% in the previous year. 19% of the respondents were planning to play the lottery in hopes that they will win and save the money as opposed to 21% that opted for this method of saving the previous year. Another method of saving that was common in both years was selling of personal property and presented an equal percentage in both years (Michele, 2014).
Savings can be done in a number of ways as shown by the response of the interviewed persons. Their methods were good although some such as selling of personal property cannot be considered as saving since it just converting assets into money (Pollin, 1997). The increases shown in the percentages on the plans of saving indicated the appropriateness of the methods and it is predictable that those methods that showed an increase in ...Download file to see next pagesRead More
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