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Posted: Monday, 06 July 2009 6:22AM
New Jerseyans Saving More
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TRENTON, NJ (AP) -- President Barack Obama might be confident the economy will turn around in the short term, but New Jerseyans are saving more money just in case.
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A quarterly consumer survey conducted for Fairleigh Dickinson University's Silberman College of Business finds nearly two-thirds of New Jerseyans have a friend or relative who have lost their job, up nine points from January.
As a result, more Garden State consumers are increasing their savings, especially younger workers.
About half of those consumers surveyed said they can live off their savings for more than six months, about the same as in April. But more consumers aged 18-29 are saving; 52 percent report that they could live off their savings for six months, up from 34 percent in April.
``There are sure signs that consumers are continuing to save money as a precaution against uncertainty,'' said Sorin Tuluca, professor of finance at Silberman College of Business.
Last week, the government reported that employers cut a larger-than-expected 467,000 jobs in June. The unemployment rate climbed to a 26-year high of 9.5 percent.
Meanwhile, New Jersey consumers have become more wary about carrying credit card debt. Only one in five said they will let their credit card balance increase in the coming months, although those making less than $50,000 are more likely to see a growing balance.
Residents do think the economy will improve in the next 12 months.
A majority - 59 percent - say they are worse off than they were a year ago. However, 45 percent think they'll be better off a year from now, and only one-third are worried they will lose their job in the next year, down from 38 percent in April.
The telephone survey of 761 randomly selected adults who said they participate in their household's financial decisions was conducted from June 22-28. It has a sampling error margin of plus or minus 4 percentage points.
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Copyright 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed. Audio Content and Graphic Content Copyright 2009 WCBS-AM 880.
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