NerdWallet's Smart Money Podcast: "Are You Saving Enough in 2025? What the Data Says About Falling Short (Plus: Where to Keep Conservatorship Funds)"
Release Date: June 19, 2025
In this insightful episode of NerdWallet's Smart Money Podcast, hosts Sean Pyles, CFP®, Elizabeth Ayoola, and their team delve deep into the state of American savings habits in 2025. The episode is divided into two main segments: a Money News Roundup exploring recent trends and data on how Americans are managing their savings, and an Expert Discussion addressing a listener's question about managing savings as a conservator.
Money News Roundup: How Are Americans Saving?
Host Elizabeth Ayoola kicks off the episode by highlighting her personal progress in achieving her savings goals, emphasizing the importance of budgeting and automated savings:
Elizabeth Ayoola [02:32]: "I have restarted contributing to my emergency savings fund because I'm budgeting better... I'm also on track to max out my 401k again this year."
Ana Helhosky, the news correspondent, presents key findings from a recent Harris Poll survey commissioned by NerdWallet:
Ana Helhosky [02:11]: "Two in five Americans surveyed said that they had at least one savings goal for the year."
Erin El Isa, NerdWallet's resident data writer, breaks down the statistics on American saving behaviors:
- 23% of employed Americans save between 1% and 10% of their take-home income.
- 15% save between 11% and 24%.
- 25% save 25% or more.
- 10% aren't saving consistently, and 23% are unsure of their savings amounts.
Erin El Isa [03:37]: "Employed Americans report saving 23% of their take-home income on average... nearly a quarter say they don't know how much they're saving."
The discussion highlights common saving goals, such as emergencies and vacations, while noting less attention to categories like pet expenses and gifts.
When addressing barriers to saving, Erin El Isa points out that even individuals with healthy incomes face challenges due to rising costs and ineffective saving methods:
Erin El Isa [04:15]: "Rising costs... might be their method of saving that's holding them back."
To overcome saving hurdles, Erin suggests incremental increases in savings percentages:
Erin El Isa [07:02]: "Start with just 1% of your take-home income... over the years it adds up."
Ana emphasizes the importance of automation in achieving savings goals:
Erin El Isa [07:46]: "Automating is a good idea for those who have specific savings goals because then they don't have to spend time evaluating how much money to save each month."
The segment concludes with actionable advice for listeners feeling behind on their savings goals, encouraging them to automate their savings even by a small percentage to build consistency.
Listener Question: Managing Savings as a Conservator
The second segment addresses a listener's concern about managing savings in a conservatorship role. Kathy, a court-appointed conservator for her sister-in-law, seeks advice on where to keep $50,000 to earn a decent interest rate, considering her current account at Wells Fargo has significantly decreased its yield.
Sean Pyles introduces the topic and welcomes Margaret Burnett, a banking writer, to provide expert insights:
Sean Pyles [13:28]: "Kathy has a somewhat complicated financial situation... How do conservator accounts differ from regular savings accounts?"
Margaret Burnett explains the nuances of conservatorship accounts versus regular savings accounts:
Margaret Burnett [14:15]: "Conservatorship accounts are set up to manage money for someone who can't handle their finances themselves... you have to follow some strict rules and keep records."
She emphasizes the importance of personalized service and suggests that credit unions and community banks are more likely to offer conservatorship accounts compared to online banks:
Margaret Burnett [16:10]: "Online banks and neobanks... are not set up to offer these types of accounts."
Elizabeth Ayoola inquires about the drastic drop in APY Kathy experienced:
Elizabeth Ayola [19:02]: "Why did the APY drop from over 4% to below 1%?"
Margaret Burnett speculates it might have been a promotional rate and advises contacting banks directly to negotiate or inquire about rates:
Margaret Burnett [20:00]: "It might have been a special short-term promo rate... worth asking as a first step."
She also reiterates the competitive nature of rates offered by credit unions, albeit often slightly lower than online banks, but underscores the importance of ease of managing funds in conservatorship situations over higher yields.
Key Takeaways:
- Find the Best Fit: Prioritize finding an institution that understands and accommodates conservatorship needs over merely seeking the highest APY.
- Automate Savings: Even small, consistent savings can accumulate significantly over time.
- Explore Credit Unions: They often provide more personalized services and might offer specialized accounts like conservatorship accounts.
- Stay Informed: Regularly review and adjust savings strategies to align with financial goals and changing circumstances.
Conclusion
This episode of NerdWallet's Smart Money Podcast offers a comprehensive overview of current American saving trends and provides specialized advice for managing funds in a conservatorship role. By combining data-driven insights with expert recommendations, listeners gain valuable knowledge to enhance their financial strategies and achieve their savings goals.
For more personalized financial advice, feel free to send your questions to NerdWallet's Smart Money Podcast via voicemail at 901-730-6373 or email at us@podcastnerdwallet.com.