Which side of the pond saves better, the British or the Americans? I thought about it and I’m not sure I know who is better saving money! Maybe some of my UK friends and readers could help fill me in but here’s what I’ve found so far.
Americans have IRAs (Individual Retirement Accounts), and the British equivalent of that is a PPP, (Personal Pension Plan). British also have an Individual Savings Account (ISA) is a tax-efficient way to save or invest. I’m sure a cash isa in the UK comes in handy. I think those are all great ways to save for the future!
All British pay into the National Insurance Fund which is a weekly paid as a pension at age 60 so those, too, are very similar and are a way to save for the future. Americans pay into and eventually collect {or hope to collect in some cases} Social Security.
Many Americans have both checking and savings accounts and utilize both for saving money and a British Current Account is what many use to do this in the UK.
I know that many Americans take advantage of 401-K plans offered by our employers and some times employers will even offer a matching donation. For instance, if the employee gives up to 5% to their 401-K plan, then their employee will match whatever percent they contributed. This is definitely something to take advantage of!
A few other money trends that I’ve observed here in America include Extreme Couponing, parents have started saving earlier and earlier to pay for their children’s college, and elderly couples are investing in long term care so that the spouse who lives the longest will be taken care of. American readers feel free to chime in as well and let me know if I missed anything.
Even though our currency looks different it seems that people on both sides of the pond use many of the same methods to save and spend money. You have to choose the best IRA to suit your needs (or the best isas for my UK readers). I don’t think it matters where you live, saving money is a smart idea to protect you in the futures. As an old idiom says, “Save for a rainy day!” I think that with a bit of discipline and common sense everyone can save money. What do you think?
About Ashley
I have to agree. The economical situations in USA isn’t a whole lot better that Europe and it is getting worse. I think saving is good but for larger savings I would recommend gold & silver. $’s or Lb’s aren’t going to do any good if the governments as we know them go under.
I do not worry much about the world economy, perhaps I should. In the US the economic situation is not good for many right now but regardless we should all continue to save our money in whatever your country offers. Saving for a rainy day is necessary because you never know what may happen. I
There are so many different options no matter where you live – and it can all get so confusing. I know in Canada they have RRSPs, government pensions, etc.