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Save! Save! Save! Spend! Spend! Spend!

President Bush may want you to spend your tax rebate to give the economy a boost, but the American Savings Education Council hopes you won't.

By HELEN HUNTLEY
Published February 26, 2008

President Bush may want you to spend your tax rebate to give the economy a boost, but the American Savings Education Council hopes you won't.

"The economy shows it's absolutely vital to have emergency savings," council chairman Dallas Salisbury said Monday to kick off "America Saves Week."

More than 80 organizations are banding together this week to deliver the message "build wealth, not debt" to consumers hooked on spending. "We're trying to fill the information and action gaps that have our nation high on debt and low on savings," Salisbury said.

While spending may provide an immediate boost to the economy, saving and paying down debt help, too, said Stephen Brobeck, executive director of the Consumer Federation of America. "The economy will benefit because of fewer delinquencies and insolvencies."

Nearly three-quarters of Americans say they save money, but only 28 percent claim to save at least 10 percent of their income, according to a survey the savings council released Monday.

Other results: 62 percent have a savings plan, 42 percent have an automatic savings plan and 76 percent plan to pay off their mortgage debt before retirement. But Salisbury said people often answer survey questions based on their aspirations rather than their actions.

If you want to know how you're doing, check out the group's "savings checklist" online (americasavesweek.org).

The real spend-or-save battle will begin when tax rebate checks start arriving in mailboxes in May. Most people will get at least $300 thanks to the economic stimulus package the president and Congress delivered.

[Last modified February 25, 2008, 21:45:02]