The Psychology of Not Saving

Why Knowing Isn’t Enough

Most people know they should be saving more money. But most aren’t.

Sound familiar?

You’ve heard the advice. You’ve probably nodded along at a workshop or underlined a sentence in a book (hopefully one of ours). You’ve maybe even said to yourself, “This is the month I’ll finally get ahead.” Yet the bank account still looks lean, and the emergency fund? Not quite off the ground.

So what gives?

According to Vanguard’s 2025 Consumer Survey, 71% of Americans say they plan to shift their savings approach this summer—focusing more on emergency funds and flexibility.

That’s encouraging. But there's a problem: most people don’t actually follow through.

This is the knowledge-action gap. And it’s one of the biggest threats to your financial future.

Let’s explore what’s really holding people back—and what you can do to move forward.

The Willingness to Save Is There

The good news? People aren’t ignoring the importance of saving. In fact, 71% of those surveyed want to shift their financial behavior this summer to focus on more intentional saving.

But despite the motivation, many Americans struggle to act on it. When asked what’s standing in the way:

• 28% said they don’t have enough time
• 28% said they don’t have enough money
• 24% said they don’t know where to start

These aren’t signs of laziness or irresponsibility. They’re signs of overwhelm. People want to save, but they feel stuck, scattered, or just plain unsure.

Why Good Intentions Aren’t Enough

At TheMoneyBooks, we’ve seen this over and over again: most people don’t need more information—they need more clarity, coaching, and next steps.

Let’s look at the three most common barriers.

1. “I don’t have time.”

Between work, family, and constant distractions, many people feel like there’s no space left for managing money. But often, “I don’t have time” is just another way of saying, “I don’t know where to start.”

Building a savings habit doesn’t require hours a week. It might take just 15 minutes to open a dedicated account or automate a deposit. The issue isn’t time—it’s priority.

When saving becomes part of your system instead of another item on your to-do list, it gets a lot easier.

2. “I don’t have enough money.”

This one feels real—especially when groceries, gas, and rent keep climbing.

But here’s the truth: saving isn’t about the amount. It’s about the habit.

Even if all you can spare is $5 a week, that small, consistent action builds momentum. It creates identity: I’m someone who saves. And that identity shift changes everything.

Waiting until you “have more” to begin saving is like waiting until you're fit to join a gym.

Start with what you have.

3. “I don’t know where to start.”

Nearly 1 in 4 Americans say they’re overwhelmed by the idea of creating a savings strategy. And we get it—the financial world can feel like alphabet soup: APY, CD, HSA, ETF...

This is where working with a financial educator can make a big difference.

You don’t have to figure it all out on your own. Just take the first step, and let someone experienced help you map out the rest.

Americans Are Feeling Financially Strained

Vanguard’s survey also highlights how emotionally loaded saving can be. In a climate of economic uncertainty, families are feeling vulnerable.

• 67% are unsure if they can stick to a savings plan this summer because of market volatility
• 63% expect to overspend on everyday needs like groceries or surprise expenses like home repairs
• 64% admit they don’t fully understand how interest rates affect their savings

That last one is especially important.

If you don’t understand how interest rates work, you might leave your money in places where it barely grows—or worse, loses value due to inflation.

But again, this isn’t a knowledge problem. It’s a confidence problem. And the antidote is financial education—the kind that leads to action.

Why Saving Without Strategy Isn’t Enough

Let’s say you’ve been putting away some money here and there. That’s great. But where you save matters too.

According to the Federal Deposit Insurance Corporation (FDIC), the average interest rate on a traditional savings account in May 2025 was just 0.42%.

That’s less than half a percent return on your money.

If you’re trying to build an emergency fund—or just earn a little interest while you save—that’s not going to cut it.

This is why financial literacy matters. You don’t need to be an expert, but you do need to know enough to make your money work for you—not sit idle.

A financial educator can help walk you through safe, smart options that offer better interest rates while still keeping your funds liquid and accessible.

The Cost of Doing Nothing

Let’s do some quick math.

Suppose you’ve been saving $10,000 in a traditional savings account earning 0.42%. That’s just $42 a year in interest.

Now imagine that same $10,000 earning 3.5%—a rate you can find in many insured accounts or cash alternatives.

That’s $350 a year, without doing anything extra.

It’s not just about saving—it’s about maximizing what you save.

When people say they feel like they’re falling behind financially, this is one of the reasons why. They’re putting money away, but it’s not growing. And without knowing it, they’re losing ground.

What Happens When You Actually Start?

Let’s flip the script.

What if instead of waiting for the perfect time to start saving, you decided to act today?

Even small steps create forward motion. That motion creates momentum. And that momentum leads to confidence and control.

We often say: action is the cure for anxiety. That’s true with saving too.

You don’t need to be perfect. You don’t need a financial windfall. You just need to begin.

And the best part? You don’t have to do it alone.

Meet with a Financial Educator

If you feel stuck or unsure, reach out to a financial educator. Not a salesperson. Not a pitch. A real, trained guide who can walk you through your options, show you how to take the first step, and help you build a plan that works for your life.

Working with a financial educator is like turning on your GPS. You still drive—but now you know where you’re going, and how to avoid the potholes along the way.

A Smart Saver’s Checklist

Here’s a simple, five-step plan to get started:

✅ Open a separate savings account (keep it out of sight, out of mind)
✅ Automate a deposit—start with $10/week if that’s all you can do
✅ Track your spending for one week to find hidden leaks
✅ Set a short-term savings goal, like $500 in three months
✅ Schedule a meeting with a financial educator to create a real plan

Remember: You don’t have to know everything. You just need to be willing to learn.

Final Word: The First Step Is the Most Important

You’re not behind. You’re not too late. And you’re not the only one who feels unsure.

But the difference between those who struggle financially and those who succeed often comes down to this:

They didn’t wait. They started.

If you’re ready to move from knowing to doing, we’re here for that. If you want help, meet with a financial educator today and get the support you need to take control of your savings, one decision at a time.

Start with one step. Let it snowball. Let your future self thank you.

Because when it comes to your money, clarity is power—and action is freedom.