By: Kelly Anderson
Government reports show that the national recession officially ended in 2009, however, millions of Americans report that they continue to face financial strain. Unemployment continues to hover around 8.2 percent and foreclosures remain a central issue in the ongoing housing crisis. Further, a recent study reveals a large percentage of Americans are struggling to make ends meet.
In an effort to overcome financial hurdles, many households are overhauling their finances and seeking out avenues that allow them to save more money. A new 60-page report released jointly by the Consumer Federation of America and Certified Financial Planner Board of Standards reveals that although 38 percent of households live paycheck to paycheck and less than 30 percent feel financially stable, those who have prepared a financial plan feel most confident.
One of the most common goals in the respondents' personalized financial plans involved finding ways to save more money. Many cut back on spending, while others reorganized their investments to grow their wealth.
Many Americans are also maximizing their earning potential by seeking out and enrolling in rewards checking accounts. These types of checking accounts enable Americans to earn a higher interest rate on their income when they meet certain stipulations, which can greatly enhance a household's cash reserves when they are facing financial strain. A recent report in U.S. News and World Report reveals that more Americans are seeking out these programs in light of the Federal Reserve's projections that traditional bank account interest rates will remain stunted through 2014. Further, many larger banks have eliminated rewards checking programs to slash their operating costs. However, many community banks and credit unions have retained programs that big banks are closing down, such as free checking and reward programs.
Further, the article notes that many of the requirements to enroll in rewards checking programs are flexible for American households. While each program varies, the most common requirements include making a low number of debit card transactions each month, keeping a minimum balance or authorizing a certain number of direct deposits on a monthly basis. These are the habits that many families abide by on a daily basis, as many families prefer to use debit over credit or keep more money in their bank accounts to save their income.