Though the economy is improving, recent reports show that the average American income stayed the same over the past year. According to The New York Times, 2 million jobs were added in the past year, corporate sales saw significant growth and the economy overall improved considerably. However, household incomes did not rise. This recent news may affect the consumer market, and financial institutions may see customers continue to remain cautious when it comes to their finances.
The source also mentioned that the average income for today's households is almost equal to what it was in the 1980's. Earnings are currently at a standstill and may be affecting the financial leniency American consumers have. Retailers will have to be mindful of this and banks and credit unions should work with members to create a responsible financial management plan.
Financial institutions that offer financial advice, stellar customer service and self-service counting machines to encourage saving every penny and other money management technology will develop strong relationships with customers and help them learn responsible spending habits. This will allow the economy to continue growing slowly but surely and instigate financial stability despite stagnant incomes.
November 1, 2013