Time for a Spending Reality Check

Americans Saving Less, Spending More

Date: July 11, 2011

Contact: Paul Golden 303-224-3514, [email protected]

DENVER—For many people, the Great Recession provided a harsh reality check to stop spending recklessly and return to basic saving practices. During the height of the recession in May 2009, Americans were saving an average of 8.2 percent of their personal income, according to the U.S. Department of Commerce. But as of February 2011, average savings had slipped to 5.8 percent, while average spending increased for the eighth consecutive month.

After a couple years of exercising discipline in response to tough economic times, many people might feel they’ve rebounded enough to start spending more freely," says Paul Golden, spokesperson for the National Endowment for Financial Education. "To ensure they don’t land themselves back in another personal financial crisis, people need to continue to be mindful of how they’re using their disposable income."

NEFE is offering an opportunity to help people scrutinize their spending habits with its latest video contest.

The Reality Check Challenge asks people to create a video showing what they have wasted their money on and what they should have done with their money instead. Entrants with the most popular stories will win back some of their money, with prizes ranging from $100 to $1,000.

The Reality Check Challenge encourages people to unjam their junk drawers and gut their garages to find those unnecessary purchases they have forgotten about or to acknowledge daily spending habits that have gotten out of control," says Golden. "We all have these types of slipups; admitting to them may help people become aware of how they are spending their money so they can avoid repeating mistakes the next time they’re at the checkout counter."

NEFE is hosting the challenge on spendster.org, an online video confessional where people can share their stories of impulse buys, poor spending habits and purchases they have later regretted. The site recognizes that everyone has purchased useless stuff, and it encourages them to calculate what their money could have been worth had they not wasted it away on stuff they didn’t need. It also provides users with helpful resources and articles to help them clear the clutter from their lives and get back on track.

About the Reality Check Challenge

The Reality Check Challenge video contest encourages people to give their spending a reality check—from wasteful habits that have gotten out of control to past purchases that, in reality, they never use. Contest entrants who submit a video answering the question, “What have you wasted your money on?” will be eligible to win back some of the cash they have burned through, ranging from $100 to $1,000. The contest, sponsored by the National Endowment for Financial Education, runs April 27, 2011, through May 25, 2011. Visit http://www.jumpstart.org/reality-check.html.




  • Paul Golden

    Media Relations Director

    Direct: 303-224-3514
    Cell: 303-918-3620
    [email protected]