Why savings accounts are down
OPINION: than non-workers, and were weaker among people who expressed a high satisfaction with their financial position.
None of that is surprising. Researchers also found the public has a rather hazy grasp of actual inflation and used lazy guesses to predict where inflation was likely to be in the coming 12 months.
In June last year, inflation was 3.3%. People’s average guesstimation of what inflation would be, a year hence, was 3.4%.
Now inflation is 7.3%, the average guesstimation for inflation in a year’s time is 7%.
Life is busy. People have stuff to do.
Is there stuff households can do to fight inflation?
Just old-fashioned home economics.
Create a budget. Trim spending on luxuries. Switch to cheaper power and insurance providers.
Make an effort to save more or pay off higher-interest debts.
Push hard for a pay rise or seek a higher-paying job.
Switch out expensive pastimes (aimless trips to the mall) for free ones such as walks on the beach.
It would help if people planned more for the future but humans do seem to be wired for the now.
Only about a quarter of people actually form any expectation of future inflation, researchers have found.
It is no wonder we react so slowly.