Only 37% of Americans contribute to a savings account, according to a new study from Clutch, the leading B2B ratings and reviews platform. However, experts say it is especially important for people to contribute to savings accounts to achieve financial security.

"It is the safest, most risk-free approach to living your life in comfort," said Philip Ash, founder of Pro Paint Corner, a painting advice service.

Clutch surveyed 501 Americans in November 2020. Currently, Americans manage their money with 401(k) plans (42%), Traditional or Roth individual retirement accounts (IRAs) (28%), stocks (26%), and mutual funds (21%).

Creating a Financial Budget Reduces Mindless Spending

Budgets track expenses, help keep people out of debt, and organize financial priorities. About 1 in 10 Americans (9%) do not have a financial plan or budget.

Consumers who charge their purchases are willing to spend more, resulting in impulse buying. 82% of Americans have used a credit card for their purchases within the last six months.

Consumers tend to spend more and accumulate debt when using a credit card because it doesn't feel like "real" money.

Setting Realistic Goals Helps Investment Plans Stick

Currently, 52% of Americans are focused on investing in retirement plans.

When beginning a financial plan, experts recommend prioritizing simple wins such as paying off credit card debt, cutting out unnecessary expenses, avoiding changes to your plan or goals, and understanding your relationship with money.

Take your unique set of circumstances into account before deciding on your plan for your money. Outside of retirement, people use their money to pay down debts (6%), purchase homes (4%), invest in education (3%), and plan weddings.

Read the full report: http://clutch.co/accounting/resources/money-management-skills-mistakes

For questions about the survey or to comment on the findings, contact Chelsea Panin at [email protected].