How Americans Manage The Financial Crisis.

21 minutes

Once again we're seeing the average American, manage their finances in the most prudent manner. I call you attention to the twin reports released on Friday: Personal Spending and Personal Income.

On the Spending side, we saw consumers across the country stop all but essential spending. In the biggest spending drop since they've kept records, consumer spending dropped nearly 14% in April. Just exactly what every financial advisor would recommend when times get tough.

Making this move even more impressive, was that Americans cut back on spending, in spite of a 10% jump in income for the month. This increases in spending are due to the fast response in direct government aid.

So, as we end the month of May, we see Americans around the country, saving, not spending as they prepare for what inevitably will be a challenging recovery. As the average Joe demonstrates that he fully understands what's ahead financially.

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