Oct. 28, 1999

A new report suggests that more Americans are spending their money, than saving it, because they don't think saving money is worth the effort.

In fact, about a quarter of Americans believe that winning the lottery is their best chance to get a nest egg.

The odds are sky-high, and there's a big payoff. But who knew that a quarter of Americans polled in a new study believe their best bet to get rich quick is to play the lottery.

The survey, by the Consumer Federation of America and a financial services firm, found people believe the rich were born that way, when in fact, most started off by saving and investing small amounts of cash.

"The public clearly does not understand the time value of money. They aren't aware that if one puts away $25 or $50 a month over a period of several decades that will accumulate well in excess of $100,000 they could even conceivable accumulate up to a million. Money really doesn't come with instructions."

Today money management experts launched a national campaign to help Americans save more money. They plan to distribute free pamphlets and have a web site to get non-savers to turn things around.

It's an emergency situation, they say. Half of all American households have only $1,000 in cash on hand.

"You should spend less than you make and it doesn't matter what that make is, there's all levels but you gotta understand who you are, live within your means and take care of yourself first."

By cutting back on spending, and socking away some cash every week, these experts say you can swing into your retirement years with no financial worries.

The bottom line here, don't leave anything to chance. The odds are better you'll be struck by lightning than win a lottery.

In Washington, Jane Watrel, NBC News.

For more information:

Consumer Federation of America
Includes Savings Calculator