Let’s be honest: Interest rates on savings and money market accounts are a joke right now. You’d be hard-pressed to find a financial institution offering even a one percent APY. That doesn't come close to keeping up with inflation. 

Internet banks continue to pay higher rates than traditional banks, according to a new report from MoneyRates.com. The yields at online banks are nothing to write home about, but they’re significantly better than what most brick-and-mortar banks offer.

“Not only are online bank rates on average about six times the level of traditional bank rates, but those two sets of rates are going in different directions,” said Richard Barrington, a senior financial analyst at MoneyRates. “Over the past six months, online bank rates have been rising while traditional bank rates have continued to fall.”

Here are the rates paid in the first quarter of 2013, according to the MoneyRates survey:

Average Savings Account (annual APY)
Traditional banks: 0.015 percent
Online banks: 0.630 percent

The best rates were at Ally Bank, American Express, Sallie Mae Bank, Discover Bank and GE Capital Retail Bank.

Average Money Market Account (annual APY)
Traditional banks: 0.154 percent
Online banks: 0.661 percent

The best rates were at Sallie Mae Bank, Ally Bank, GE Capital Retail Bank, EverBank and Nationwide Bank.

(Read the complete list of America’s Best Rates.)

Greg McBride, senior financial analyst at Bankrate.com, points out that if you’re not comparing what you earn on your traditional savings account with what you could make at an online bank, you could be leaving money on the table.

“Yes, returns are low everywhere, but so is inflation right now,” McBride said. “Squeezing out every little bit of return on your savings gives you the best shot at preserving the buying power of that savings."

Other advantages to online banks
A bank doesn’t need tellers and branches to deliver good customer service. Another new MoneyRate survey finds customers who bank online are slightly more satisfied with the service they receive than those who do not.

The satisfaction rate was 86 percent for online customers and 83.7 percent those who use a brick-and-mortar bank.

“We found that customers don’t seem to miss their bank tellers that much,” Barrington told me.

That’s because online banking is more accepted these days, Barrington explained. People feel comfortable using ATMs, computers and smart phones to interact with their bank. At the same time, banks have closed branches to cut costs. So, they’re not as conveniently located as they once were.

One more benefit: Surveys show online banks tend to have fewer fees and lower fees. That’s a big plus for many people in search of a new bank.

Is online banking for you?
Look at your own banking habits. If you visit your local bank a lot and like the personal interactions you have there, then you may want to stay put.

If you haven’t set foot inside a branch in ages because you do all of your banking online or through ATMs, you may want to look into online banking to boost your return, lower your fees or both.

The decision between a traditional bank and an online bank doesn't have to be all or nothing.

“You can still have your checking account at the local bank, but have your savings account at an online bank to get a better return,” explained Bankrate’s McBride. “Then link the accounts to easily move money back and forth with a couple clicks of a mouse.”

More Information:

NextAdvisor.com: Savings Account Calculator

Bankrate.com:  Highest Yield Money Market and Savings Accounts

Herb Weisbaum is The ConsumerMan. Follow him on Facebook and Twitter or visit The ConsumerMan website.  

You scrimped and saved, built a business, managed your growing fortune wisely. Now, according to studies of the super-rich and the merely wealthy alike, you have one overwhelming concern: How do get your well-off children or grandchildren to think more like you?

Relax: Your kids are probably getting these financial lessons of life on the Internet.

A host of digital entrepreneurs, banks and investment firms are building web and mobile platforms that educate youngsters about money—teaching grade-schoolers how to earn and save for things they want, middle-schoolers how to pay rent and college students how to trade stocks.

The trend is known as "gamification" because the learning comes through computer-game simulations of real-world financial events. Children adopt the personas of college grads getting their first apartment, young moms on a tight budget or small business owners. They pay for groceries and clothes, balance checking accounts and save for big-ticket items.

According to financial educators, gamification is designed not only to teach basic concepts but also to start conversations that let parents instill financial values in their offspring—or, often, to catch up with what kind of economic decisions their kids are already making.

"They have money already," said Eileen Reid, a middle-school family and consumer science teacher in Howard County, Md. "They are getting cellphones and dealing with which plan costs what. They are very aware of their lifestyle." Their parents are the ones who are uncomfortable talking about money, said Reid, whose own financial upbringing was of the "Do you think money grows on trees?" variety.

In her classroom, Reid uses a computer program called JA Finance Park Virtual, a collaboration of Capital One and the nonprofit organization Junior Achievement, to cement lessons she teaches from the blackboard.

"It's an eye-opener for them," she said. "They realize they can't afford what they want their [virtual] children to have. They want $120 tennis shoes, so they have to figure out how to pay for it."

Questions about sneakers quickly become discussions about how money represents priorities, Reid said. "What do you value? Is it really important to give to a charity? Should I continue with my education?" she said. "It's fascinating to watch them come to life when we get to the virtual experience."

The game, used in 468 schools nationwide, has been part of the curriculum at Maryland schools since 2010, after the financial crisis had made business leaders aware of the widespread ignorance about how mortgages, credit cards and other basic financial instruments work.

"The business community started going to the state legislature and said , 'We have to get people more literate,' " Reid said.

Other parents aren't waiting for schools to start the conversation.

Monica Giles, a hairstylist in Denver, has been using the accounting tool Tykoon.com with her 6- and 8-year-old boys. Giles and her husband set up profiles on the site listing household chores and the allowance paid for each task. The boys set savings goal, and fill their online shopping carts with toys and other treasures they hope to buy.

Tykoon turns parent-child "I want this!" battles into conversations about financial responsibility, Giles said. "When you're out shopping, you can turn it back on them," she said. "I ask them, 'Well, do you have enough Tykoon money?' "

Though Tykoon awards kids virtual "coins" for achieving their goals, the money they earn for chores is real—"from the Bank of Mom and Dad," said Mark Bruinooge, a former Bank of America executive who developed the site with The Lending Tree founder Doug Lebda, with help from family therapists.

At first, Giles said, she wanted her kids to see and use physical money. But as transactions become increasingly digital, she said, "kids need to realize that when you see the number on the screen go down, what they have left is real money, and you decide what to move over to savings and what you spend. It's a good transition to banks."

Of course, that's precisely what the companies promoting gamification are counting on.

When Tykoon is fully operational, it will be offered free to users if they link their account with the site to a partner bank. (An unlinked Tykoon subscription will cost $4.95 a month.) As families mingle their Tykoon activities with real savings accounts, "banks can build brand equity with the family," Bruinooge said.

The banks hope gamification will not only attract future customers but help convert them to using online services, which are cheaper to provide than in-person interactions. In Europe, where banks adopted gamification earlier than their American counterparts, there are games for adults as well as children—all aimed squarely at promoting web banking.

Some see educating the next generation about money as too serious to be left to games.

"Our viewpoint is that investment is a serious activity, and should not be driven by amusements," said Nicole Sherrod, managing director of TD Ameritrade's trading group. "We are investing in the knowledge of today's youth, as they are the clients of tomorrow."

For the past two years, the company has made its online trading platform, Think or Swim, available to students at 60 high schools and colleges across the country. The educational version comes with a play trading account with $100,000 in "paper money"—what others in the finance education business call virtual cash.

"They learn about the stock market using the same platform that their parents are trading on," Sherrod said. "It bridges the gap between academics and reality."

That gap is closed altogether at the University of Idaho. For the past seven years, finance students at the Moscow campus have used Think or Swim to build on a $1 million endowment to the state school by trader Rotchford Barker.

In a prerequisite course called Market Trading Strategies, students familiarize themselves with the program and trade using the system's paper money. In Trading 2, the 15 or so students in the Barker Capital Management Group make consensus decisions about investments and implement them using real money.

"We invest in all sorts of asset classes—equities, bonds, futures, derivatives" using "the gamut of investing ideas," said Mat Schaefer, a senior and chief investment officer of the group. The largest amount Schaefer recalls investing in one day is $100,000, and he says they haven't lost money in any semester. "We're not going really for radical growth. The main thing were learning is risk management."

While it's exciting to get a big winner, Schaefer added, the group's main concern is "to have money around for future students."For those worried about what's going to happen to their hard-earned money, it's the best lesson their children could learn.

More from CNBC:

How the student loan crisis is draging down home prices

Kevin Lamarque / Reuters

Graduating students at the University of Michigan commencement ceremony in Ann Arbor, Michigan in this May 1, 2010 file photograph. American families are failing to meet their college savings milestones as short-term needs and emergency savings take priority in family budgets.

Paying for your child's education is a laudable goal, but may not be realistic for some parents who could wind up jeopardizing their own financial future in order to help put their sons and daughters through college.

Parents who are saving for college frequently raid retirement funds — or plan to do so — to pay their child's skyrocketing tuition bills, according to a new study released today from the nation's largest student loan provider Sallie Mae. More parents are currently saving for their retirement than for their children's education, but these families often plan to draw from retirement savings to help cover the costs of college, especially as other goals — from building up a "rainy day" fund to increasing general savings — take priority. "The economy is putting pressure on families in terms of whether they're saving, how much they're saving and where they're saving," said Sarah Ducich, senior vice president for public policy at Sallie Mae.

The report "How America Saves For College" surveyed more than 1,600 parents with children ages 18 or younger and found half of parents said they were focused on college savings, while 60 percent were focused on saving for retirement. But if they have to choose, parents are opting to boost their retirement savings — 42 percent of parents who are not saving for college said they are saving for retirement.

The good news: More than three-quarters of those parents surveyed who are saving for college are also focused on saving for retirement.

The bad news: Many of those families who say they are saving for college also admit that they are doing so through their retirement fund. One-third intend to use these savings for college. The other two-thirds say that they would use their retirement savings to pay for college, only if necessary.

Families are more likely to use retirement savings to fund college as their children get older and the urgency intensifies. Less than half (44 percent) of families with children under age 6 would use retirement savings to pay for college, while more than seven in 10 (74 percent) families with teens would use their retirement for college, the survey found.

How much retirement money are they putting toward tuition and other college expenses?

Nearly 6 percent of parents in the thick of paying for college are drawing on retirement funds by taking a loan or withdrawal of about $6,475 on average, according to a 2012 Sallie Mae survey.

Unforeseen consequences
But here's the problem: Most parents don't realize paying for college with money withdrawn from a retirement account can result in a double whammy. First, the withdrawal can count as income, which is taxable. Plus, with that additional income, you'll reduce your financial aid eligibility the following year.

"Between the tax impact and the reduction in aid eligibility, the family may net very little return on their investment," said Mark Kantrowitz, publisher of Fastweb.com, a free scholarship matching service. "It also sacrifices retirement funds," he said.

By borrowing from your 401(k) or IRA, parents not only reduce their retirement balance, but also miss out accruing interest. And if you're under age 59 1/2 and take a loan from your 401(k), you'll have to pay back the loan with interest in five years, or immediately, if you change employers.

Jump start your college savings
So how can parents avoid raiding their retirement funds for college? It sounds very simple. Make a plan to save. The Sallie Mae study showed 70 percent of families with a set goal to save for college are confident they will save 10 percent of future college costs.

To ramp up college savings, start funding or add more money to a 529 college savings plan. A 529 college savings plan allows you to save money for college and then withdraw the funds for qualified college expenses tax-free. Studies show that people who use 529 college savings plans are more successful college savers than those without 529 plans.

The College Savings Foundation's 2012 parent survey found that 22 percent of 529 owners have saved between $10,001 and $25,000, while only 9 percent of non-529 account owners have saved a similar amount. Likewise, 18 percent of 529 plan owners reported saving between $25,001 and $50,000. Only 4 percent of non-529 account owners managed to save as much. Overall, parents who have not opened a 529 plan are the least effective college savers — nearly half have no college savings.

To help jump start your college savings, here are a few tips from Kantrowitz, who is also publisher of the financial aid information site FinAid.org:

• Make savings automatic, so you don't have to think to save.
• Increase the amount you save each year. You will quickly get used to not having the money in your checking account.
• Whenever you get a windfall, such as a big income tax refund or inheritance, contribute all or part of it to the college savings plan.
• When expenses change, resulting in some savings, devote the savings to college. "When your child no longer needs diapers or daycare, for example, redirect the savings to their college fund," Kantrowitz says.
• Use a rebating program, like Upromise, to help build your 529 plan faster.
• Finally, get grandparents and other relatives involved. Have them contribute to your children's 529 plans instead of giving gifts on birthdays and holidays.

Make college savings a true, family affair.

For the Everything Cheaper special hour, TODAY asked viewers to tweet @TODAYshow your top tips to save money via the hashtag #MySavingsTip.

Seventeen of the best ones are highlighted below, and find all of your responses here. 

Everything Cheaper on TODAY.com:
Video: Save with apps that make everything cheaper
Chicken challenge! Feed a family of 4 for less than $12 
Video: Upcycle! Save worn-out furniture from the trash
Video: Willie’s biggest spending regret: Big-screen TV

An hourglass figure may be desirable, but it’s not a good look for an economy.

“The middle is getting squeezed and people are moving up and moving down but staying in the middle is pretty difficult,” said David Kelly, an economist for JPMorgan Funds.

And this “hourglass economy” is taken its toll on savings accounts.

About 49 percent of Americans say they are unable to contribute to a retirement plan, according to a survey conducted earlier this year by LIMRA, a financial services industry trade association.

But saving for retirement is not something to be ignored. You have to start somewhere. Here are four tips for those of you struggling to put money away for your golden years.

1. Save before you spend

If you're not doing it now, you have to find a way to save and the best thing you can do to help yourself is automate.  If the money lands in your checking account and you see it on your ATM receipt, it's too easy to find some "need" to spend it on.  Arrange for it to be swiped out of your checking account before that happen and put into an IRA or other savings account.

2. Prioritize your savings

• Emergency fund first: If you've heard it once, you've heard it a hundred times. You need at least six months of living expenses - in cash - just in case. When you first start to have money to put away, it's important to fill up this bucket first. That way, you have cash to fall back on when the roof leaks or the computer breaks and you don't have to reach for the credit cards. Put this money in a boring old savings account, where you may not earn much interest but you can get at it if you need it.
• Matched contributions: After you satisfy your emergency needs, you can start putting away money for other, longer-term goals. Any money that gets matched comes next on the list for the obvious reasons - the returns are big, instantaneous and guaranteed. You're most likely to get your hands on these through your retirement plan at work, like a 401(k). Another place you may see matching dollars is your state's 529 plan, which is a retirement savings tool. It's rare, but not unheard of, particularly for lower income residents: Colorado's Direct Portfolio College Savings Plan offers a dollar-for-dollar match of up to $500 for lower and middle income residents. Kansas has a similar program, matching contributions above $100 and up to $600 per year.
• Tax-advantaged accounts: Once you've maxed out your ability to grab matching dollars, saving in tax-advantaged accounts is your next best move. Some of these offer you a tax break for putting the money in - as with 401(k)s, traditional IRAs, some 529s. All let the money grow tax-deferred while it's in the account. And the Roth IRA, though you are taxed on contributions, lets the money grow tax free forever and doesn't require you to start taking it out at a particular time. All are great advantages when it comes to growing your savings.
• Discretionary accounts: So what happens when you've funded your emergency cushion, grabbed all of your matching dollars, maxed out your ability to contribute to retirement and other tax-advantaged accounts, and still have money to save? By all means, save! If we're talking about money for a short-term goal, put it into an account where you won't lose it (that means no stocks) and you can access it when you need it (no long-term CDs). If it's for retirement or something else further down the road, put it in a brokerage accounts and buy some mutual funds that give you the opportunity for growth.

3. Set a realistic savings percentage per month

Start by saving 2 percent per month. It will force you to cutout the small things that you probably won't notice. Avoid a "crash diet" savings approach (setting unrealistic goals just like some people do with food) in order to guarantee long-term savings success.  Almost ANYONE can save 2 percent.

In the long-term, aim to save 10 percent to 15 percent per month, but you can't start there. Start small and up it as you go along.  Something is better than nothing at all.

4. Save when you can

When you find yourself with some extra cash, don't go out on a shopping spree.  Resist the urge to spend it all.  You never know what the future may bring. 

More information:

• The retirement saver's credit

More Americans are feeling unsure of your financial security but it’s not because of the tough job market.

It's all about those skimpy paychecks.

Stagnant wages for the majority of U.S. households have more consumers curbing their spending and worried about paying down debt, according to a Bankrate.com survey released Wednesday. Inflation-adjusted median family income has declined about 6 percent since it peaked at around $64,000 in 2000.

Bankrate.com’s Financial Security Index looks at job security, savings, debt, net worth and the overall financial situation of consumers; this month the index hit its lowest level since March and experienced its biggest monthly drop since last August. About 1,000 adults were polled via telephone interviews done nationally earlier this month.

Even with the unemployment rate still above 8 percent, surprisingly job security was the least affected part of the index. Most of those polled feel that the jobs outlook was the most improved component this year.

“What's really undermining consumer progress on financial security are stagnant wages,” said Greg McBride, Bankrate’s senior financial analyst. “If incomes aren’t growing it’s difficult for people to make headway on debt and savings.”

Indeed, the U.S. Commerce Department reported in June that consumer spending was unchanged and wages were essentially flat in May. 

Uncertainty over what many have called the “fiscal cliff” is keeping many businesses from hiring, expanding and making big investments, McBride explained. The cliff is referring to $600 billion worth of tax hikes and spending cuts that could automatically kick in January if Congress doesn’t find a compromise. Some economists have warned that it could push the U.S. economy into reverse. 

Bottom line, McBride added, “The economy is still stuck in first gear.”

Most Americans don't have enough money saved for a rainy day -- or even a cloudy one.

A new survey from Bankrate.com finds that 28 percent of Americans haven’t saved any money at all to cover their bills in case of a job loss or other disaster.

Only 25 percent of people had six months of savings -- the usual amount financial experts say you should have socked away for an emergency.

And six months might not even be enough given how long it’s taken people to find a job these days. The median duration of unemployment was 20 weeks in May, or about five months, according to the Bureau of Labor Statistics. For older Americans it can be much longer.

Another 21 percent said they had some money saved up, but not even enough to cover three months of expenses.

Taken together with those who hadn’t saved at all, 49 percent of people couldn’t go three months without a paycheck. That’s up from 46 percent last year.

Still, the figure is better than six years ago, when a similar Bankrate.com survey found that 61 percent didn’t have three months of living expenses saved up.

The recession and the weak recovery have been a wake-up call for many Americans, sparking an increase in savings and a decline in debt. But recently there have been signs that people are taking on debt again for things like cars and education, and relying more on their credit cards.

It’s not clear whether that’s by choice or necessity, although Bankrate research did show that about one-third of those surveyed were less comfortable with their savings than they were a year ago.

The survey was based on telephone interviews with 1,000 Americans.

Related:

Gen X may have taken biggest hit in economic downturn

Long-term unemployed losing benefits as job picture improves

David Bach

It’s great when you’re significant other keeps you on the road to financial well-being, but what if your better half is also a fiscal train wreck, or they're just not on the same page as you when it comes to money management?

The first step in dealing with the problem is admitting you and your lover have a problem, said David Bach, a personal finance expert and author of numerous money management books including “Debt Free For Life: The Finish Rich Plan for Financial Freedom.”

Bach was on hand Wednesday to answer relationship money questions from readers during our weekly live web chat that included a host of inquiries on how couples can put their financial houses in order.

The key, Bach maintained, is being honest about financial challenges and getting both members of a couple to do their part.

Clearly, it’s a challenge. According to a Today.com and SELF magazine survey released earlier this year, nearly half of respondents admitted to keeping financial secrets from their partners.

Of those who kept secrets, about 34 percent said it was because they disagreed with their significant other about where to spend the money.

One reader who joined the web chat was able to put all his and his wife’s financial cards on the table.

G. Money asked Bach:

“My wife and I have been married for 15 years. We both are spenders. We have accumulated a lot of debt. We have about a $110,000 mortgage, $35,000 2nd mortgage, $12,000 personal loan and $10,000 in credit card debt. How do we tackle this debt? Also, how do we change our bad spending habits?”

Bach’s reply:

“All financial progress begins with telling the truth and you just did that, so well done. I think you need credit counseling. I would go to www.debtadvice.org, and get a referral to a non-profit credit counselor to review what you bad habits are and what you can do to change your behavior. Also go to the library and get Debt Free For Life, my new book and simply work the plan I lay out, it can help you get on the right track to crush your debt and change your life. Good luck to you! You can do this, and you can change.”

For those individuals who have a spouse who’s the opposite of them when it comes to personal finance, one of you may need an education in dollars and sense, advised Bach.

Khang asked:

“She wants a joint bank account; I don't. She's a spender, I'm the saver. Can you help me resolve conflict with my future wife?”

Bach wrote:

“Khang, welcome to marriage...lol. The truth is we almost always marry our financial opposite. Check out my book "Smart Couples Finish Rich." In this book I teach couples to first work on discovering their core values, and planning their dreams together. Then I turn to your finances. The best place to start is on organizing your financial documents at home with my Finish Rich File Folder System. You can actually find this on my website also at www.finishrich.com. Next you should work on finding your couples Latte Factor, where you spend small amounts of money on little things that you can both give up. And then it's time to work on a 'pay yourself first plan', where you agree to set aside a fixed percentage of your income off the top of your income before you spend anything. Lot's to consider, but trust me you really can do this--and being on the same page with your money will change your life! Good luck to you!”

Here’s a transcript to the entire Q&A with Bach:

David Bach

The stock market turmoil of the past few years has spooked many of you looking to invest and save for retirement.

But it’s time to get unspooked, advised David Bach, personal finance expert and author of numerous money management books, during a live web chat Wednesday where he took readers questions about retirement planning.

He had a spirited exchange with one reader who saw little value in stock market investing at this point, and had little confidence in financial planners or the U.S. economy.

Jeff wrote:

What if the stock market just goes side ways for the next twenty to thirty years and compound interest ends? Have fun saving for retirement then. All of these models financial planners have blow up. And the reality of it is most American will be totally screwed. Then what?

Bach said:

The reality is, Jeff, that the plans haven't totally blown up. In fact, according studies, people that have stayed the course since the stock market crashed after the recession are now UP, and have seen their 401(k) accounts go from the mid $40,000 levels to the mid $70,000 levels. The Dow Jones Industrial Average is up over 100 percent in the last four years from the bottom. We've just lived through one of the fastest stock market corrections in our lifetime. The bond market continues its historic bull market, and has produced annual returns of double-digit proportions. Municipal bonds last year were up over 15 percent. So, good financial planning and consistent savings have helped Americans survive and prosper through this recession. If you believe the stock market is going to stay flat for thirty years, then you should be focusing all of your savings on paying down your debt (specifically your mortgage).

And Jeff countered:

Over the last ten years the market has been side ways. Yes, pick the low point to the current run up to distort reality. Look at Japan. That could well be the future of the U.S. Good luck saving enough for retirement with out compounding.

To that, Bach added:

People save weekly and monthly and quarterly and annually. You my friend are the one distorting the facts. People didn't pile into the stock market ten years ago and then never add to their retirement accounts. And bonds have done extremely well. So has gold, silver and on and on. People are making money investing. If you don't believe it to be true, then don't invest. You can simply spend everything you make, live paycheck to paycheck and then get on live chats like this one and just complain the world is always going to be a terrible place. Sounds like a tough way to live however. I would rather bet on myself to win and bet on America.

Bach’s frank money advice touched upon everything from when to start taking disbursements from retirement plans, to whether you should raid your retirement fund to pay for your kid’s education.

Here’s a transcript of the web chat:

You can follow Bach, author of “The Automatic Millionaire" and "Debt Free For Life: The Finish Rich Plan for Financial Freedom,"  on his Twitter account, or check out his website.

Many U.S. consumers are so deep in a financial hole that even as the economy begins to turn around they can’t quite dig themselves out.

A survey by Bankrate.com released Tuesday found that 25 percent of Americans have more credit card debt than they have in emergency savings, and that spells trouble if an emergency situation actually hits.

Consumers are doing better when it comes to living within their means, said Greg McBride, Bankrate.com’s senior financial analyst. But, he added, years of stagnant wage growth, high unemployment, declining home values and escalating household expenses have strained wallets. “Even though there’s been progress things are still out of whack,” he said.

And the economic pictures may get even gloomier for consumers if gas prices continue to escalate, he pointed out. Last year, he said, “60 percent of Americans said they cut back on discretionary spending because of gasoline prices.”

Those hit hardest when it comes to debt versus savings, are individuals on the low end of the economic ladder and those with less education, according to the study that polled more than 1000 adults earlier this month.

Here are some of the findings:

• 70 percent of those earning $75,000-plus have more in savings than credit card debt vs. 40 percent of those earning less than $30,000 per year.
• 64 percent of college grads have more in savings than in credit card debt vs. 46 percent with a high school education or less.
• 27 percent of Americans report a lower level of financial security now versus one year ago and 24 percent report a higher level.
• 38 percent of Americans are less comfortable with their savings now compared with one year ago; only 14 percent are more comfortable.

The overall percentage of consumers who have more emergency savings than credit card debt actually inched up to 54 percent of those polled, compared to 52 percent in the same month last year. But that doesn’t mean people are necessarily more debt adverse.

“They can’t go spend money they don’t have,” McBride explained, because credit is so tight today, particularly when it comes to consumers who don’t have the best credit ratings.

A bad credit rating can also create a double whammy for those people looking for jobs because some employers now use credit reports when evaluating job candidates. That’s even worse news for individuals trying to pay off debt.

High amounts of debt and thin savings have become a fixture in U.S. society. “Over the years, the savings’ needle hasn’t moved,” he said. “From 2007 and 2011, the percentage of Americans with three months worth of expenses in savings, which is not adequate, is unchanged.”

It’s something we may be used to, he maintained, but “it’s not a recipe for people having a warm and fuzzy feeling about their financial situation.”

By Jessica Mintz,
msnbc.com contributor

More parents are saving for their kids’ college educations before the youngsters even hit kindergarten. But between the pressures of a stalling economy and the ever-rising cost of higher education, those savings will cover just a fraction of the cost of a four-year degree, according to a new Fidelity Investments study.

This year, 67 percent of parents surveyed have started tucking away money for tuition. That’s more than the 58 percent Fidelity found in 2007, the first year it conducted the study.

More than half of parents with children aged 5 or younger are still paying off their own student loans, and nearly half are paying an average of $576 per month for junior’s preschool or day care. Yet 40 percent are juggling those financial obligations with a dedicated college fund for junior, too, up from 27 percent five years ago.

Even as parents grow savvier about saving, those college funds are projected to cover a shrinking portion of the cost of a degree, according to Fidelity’s calculations. Today, Fidelity expects the typical American family will be able to pay for 16 percent of college costs, based on current and expected savings. That’s down from 24 percent in 2007; over those five years, college costs have jumped 26 percent, Fidelity says.

(As a plug for the value of financial advisors, Fidelity Investments also notes that parents who work with an advisor are on track to cover 31 percent of college costs.)

Parents are far less optimistic than they were a few years ago about the amount of college costs they’ll be able to cover with loans. And more of them – a full 75 percent – say they don’t want their kids to graduate with a mountain of debt anyway.

Instead, a growing number of parents are asking their kids to work part-time to help pay for college. They’re encouraging junior to live at home and commute to school, to pick public schools over private universities and to graduate in fewer semesters.

The percentage of parents who believe they are responsible for footing the bill for college was higher this year than in 2007, and they are increasingly going back to work or getting a second job.