In December of 2004 the Wall Street Journal printed an article reflecting a report published by the United States Commerce Department. The Department reported that 0.2% of households saved their disposable income in October 2004, which was down from 0.3% a month before. This means that someone who takes home $40,000 annually is saving only $78 a year.

Now 14 months later another report was released and the news has not improved. For the first time since the Great Depression personal savings in the United States is in the negative numbers! The rate fell to minus 0.5%, which as the Associated Press reported, shows that Americans not only spent all of their after-tax income in 2005, but had to take funds from previous savings or borrow money to meet current expenses.

Coupled with this report is information showing that consumer spending continues to rise yet the average income is declining. Income growth declined by 2.3 percent in a report by the Federal Reserve.

All of this news concerns me greatly! When I was elected to the Office of State Treasurer, I made a commitment to help Kansans take a more pro-active approach to their finances. My office administers the Learning Quest, our state's post-secondary education savings program designed to help families save for future higher education expenses. In addition we offer financial planning seminars to senior citizens, credit card awareness classes to high school seniors and college freshman, and money management programs to grade school and junior high aged children. Based on this latest news, I have never been more determined to encourage Kansas families to be diligent in their financial education and planning.

Some experts will recommend that you save 10% of your monthly income or at least six months worth of income. I recommend that you do whatever works best for your family after you have consulted financial advisors such as your certified public accountant, banker or investment advisor. But the most important thing to do is to develop a plan and make sure you and your family have a map that will guide you through life, given all the challenges such as medical emergencies, job loss, the rising cost of college, and retirement.

Please feel free to visit my website, www.KansasStateTreasurer.com, for information regarding the Learning Quest education savings plan, and a list of our financial literacy efforts. I will continue to do my part by offering educational opportunities to all Kansans. Help me by contacting our office at 785/296-3171 or at lynn@treasurer.state.ks.us if you see a need in your community. It is my honor and a privilege to serve as your State Treasurer.