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America Saves Week - February 20-27, 2011

So many expenses, so few dollars saved. That's the dilemma faced by millions of Americans – everyone from struggling college students to young families saving for a down payment to baby boomers approaching retirement. During severe recessions, people tend to curtail spending and increase saving as a hedge against potential – or real – hardship. In fact, the average personal savings rate as a percentage of disposable income has risen to about 5 percent, compared to an all-time low of negative 0.5 percent in 2005. Back then, the economy was booming and many people assumed that the stock market and home values would climb indefinitely. How wrong we were.

It's probably too early to tell, but some worry that the strong 2010 holiday shopping season may signal a return to old spending habits. Here's hoping we've learned our lesson about living beyond our means and the importance of saving for a rainy day.

There are many reasons why it's important to develop and maintain sound savings habits during good times and bad:

  • You could lose your job or see your hours cut. Most experts recommend having at least six months' income readily available for emergencies.
  • Those approaching retirement need to boost their net worth slashed by plummeting home and retirement account values.
  • Costs for high-ticket items like medical expenses, college and retirement continue to far outpace the rate of inflation.
  • Many fear that future funding for government-provided benefits like Social Security and Medicare is at risk.

Although many believe that low- and moderate-income families cannot afford to save and build wealth, research shows that there are "savers" and "spenders" in all income classes. To help encourage people to learn sound saving habits, a broad coalition of non-profit, government, military and corporate organizations formed the America Saves campaign in 2001 (www.americasaves.org).

This year's America Saves Week is slated for the week of February 20-27, 2011 America Saves offers many tools for learning more about the importance of saving, including an interactive Personal Wealth Estimator that can help determine your current net worth and then estimate your future net worth; monthly savings messages from national financial experts on topics such as money management, investment basics, building wealth through home ownership, saving during tax time and ways to get out of debt; a quiz to "Test Your Savings Knowledge". (Did you know that families that have a savings plan in place save about twice as much as those with no plan?); tips for saving on everything from food and household items to medications to banking and insurance products; and handy links to numerous other websites that feature financial education materials.

Chances are that economic prosperity is still a ways off; but when it eventually comes,hopefully the harsh lessons of the past few years will be remembered and the thrifty habits learned out of necessity will be retained.

About First Community Bank and Trust
First Community Bank and Trust is a privately owned bank. Established in 1916 First Community Bank and Trust has been serving Beecher, IL, Peotone, IL and the surrounding communities for over 95 years. Our commitment to providing the best banking products and services is matched only by our outstanding customer service. We offer traditional community banking services, including mortgage, consumer, and commercial lending, as well as state of the art electronic banking services.

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Press Contact:
Steven D. Koehn, VP
First Community Bank and Trust
(708) 946-2246