Author Topic: Would you risk your interest if it meant you may save more?  (Read 1308 times)

Offline nimzy88

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The April 25th episode of the Freakonomics podcast (available for free on itunes) began by asking if you could come up with $2000 in 30 days, the results are probably not too shocking for most of us on this site, but even a larger percentage of people making over 100k a year said they could not come up with the money. Why $2000, because that is the average cost of a household emergency whether it be fixing an appliance or needing a plane ticket after the death of a relative on the other side of the country.

Ill just summerize what they discussed next.

The savings rate of American citizens is pitiful.
Lots of Americans play the lottery. Why? Because most feel its the only way they could ever have over $100k.
A bank in South Africa came up with a so called "no lose lottery" Money invested in a savings account had a .25% of their interest withheld. That interest went into a lottery for everyone with that type of account.
South Africa gov. put a stop to it.
Credit Unions in MI are trying this, a lot of people like it.
People who don't like it include, US Treasury dept. and state lottery Officials.



I thought it was a great episode and if it gets people who would normally not save to start then even better.