With Consumers Pulling Back, Is Saving Going to be Sexy Again?

Consumer spending appears to be slowing down as prices for many necessities head up, and unemployment continues to rise (in fact, the jobless rate is up more than two percent in NC over the past year, and stands at 6.9% as of August). We all know that consumers tend to pull back in times like these and with many financial institutions cutting lines of credit, some consumers may have no other choice.

My question for you: after having the punchbowl taken away from them, are consumers about to change their relationship to credit and the way they live, or are we all just waiting to be invited to the next party? Is saving money going to be sexy again?

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2 Responses

  1. Absolutely!

    In fact, I believe that CREDIT UNIONS are BACK!! We were chartered to promote thrift (those values came from surviving the depression). We only provided credit for provident and productive purposes. Like it or not, history is repeating itself.

    With reckless spending and abhorrent lending practices destroying our economy for the sake of raising the stock price, credit unions CAN easily talk about their difference now.

    We don’t HAVE a declining stock price. We don’t need a government bail-out. Our insurance fund is solid. Your money is safe.

    Thanks for this post!
    Denise Wymore
    Culture Consultant and Credit Union Evangelist

  2. Denise –

    I agree – when someone has a heart attack, the doctor lays out a plan and the person generally is going to follow it. It’s a clarifying moment when you remember what’s really important.

    Just like the heart patient who gives up fried chicken, consumers will have to deal with life without unfettered access to credit. And I think they’ll find life can be pretty good – once the fallout from the economy is over.

    Credit unions should be well-positioned for this change. They just need to keep doing what they’ve been doing all along – making smart, fair, sensible loans.

    Thanks so much for your perspective!

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