As much as Americans like to consume, they are equally fond of giving too. Yes, the numbers speak for themselves, but I also know this from personal experience as, I’m sure, do you. Fortunately, both consumption and charitable giving are signs of economic health, so going into 2012, we seem to be in pretty good shape.

New numbers released for charitable giving in 2011 show an increase of 7.5 percent over 2010. Americans gave $347 billion to non-profit organizations last year, an increase of 24.2 billion over the year before. What’s even more exciting to hear is that it’s projected giving will see another jump in 2012 of 3.9 percent over last year.

This increase in giving to non-profits probably come from the same confidence that fueled such a healthy holiday retail sales season. As I blogged a couple of weeks ago, consumer credit surged 10 percent in November, the largest increase since 2001. In other words, consumers are feeling exceptionally confident they can handle increased debt. What’s important to note here, too, is that consumers have simultaneously demonstrated a commitment to paying their bills on time.

That said, it’s essential that consumers keep their heads in 2012. The GDP is only projected to grow 2 percent this year. Yes, that’s a move in the right direction, but not enough to stimulate the healthiest of economic recoveries. And we cannot overlook the fact that consumers are saving less these days. Consumption and charitable giving may be key indicators of economic health, but so is the amount of money you consistently pay yourself.

Source: http://www.atlasofgiving.com

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