Tip of the Week: Of Lotteries and Savings (11/22/99)

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	Of Lotteries and Savings Financial Tip of the Week by Deloitte & Touche OnLine November 22, 1999

A study shows how little Americans understand about money.

See our archive of previous tips on your money, your taxes and your financial plan.

How little do Americans know about money? How well are they prepared for their futures? These are results from a recent Consumer Federation study:

The typical American household has about $1,000 in net financial assets, and $35,500 in net wealth.
Those with the least amount of assets typically had middle incomes, not low incomes. In terms of assets, the lowest fifth among American households had average incomes of $31,700. The reason they had so few assets was apparently high levels of debt.
Low to moderate income Americans believe they have a better chance of getting $500,000 through the lottery than through their own savings. The lesson: even a little saved regularly can grow to be a lot.

The Consumer Federation believes too many Americans don't understand the time value of money. Invest $50 a week for 40 years, earning 9% interest, and you can save more than $1 million.