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Middle-class Americans are tripping and falling into costly financial traps cleverly set by big banks — and they’re getting stuck there while the banks drain their wealth.
So says personal finance influencer Vincent Chan, whose YouTube video made a compelling case for how banks use two common financial levers — savings and debt — to benefit their bottom line at the expense of their customers (1).
Is Chan right? If so, how can you spring yourself from these traps and start building real wealth?
Many middle-class Americans trust traditional savings accounts for security, but with their interest rates barely above zero, they do little to grow wealth. The national average personal savings rate is just 0.40% as of November 2025 (2) — far below inflation — meaning the value of your money is shrinking over time.
For example, $10,000 in a savings account earning 0.40% interest will net just $40 in a year, while inflation erodes its purchasing power by about $250. This slow leak can seriously impact your long-term financial goals.
Another option is to invest in low-risk, higher-return vehicles such as certificates of deposit (CDs), money market accounts, or treasury bonds. These options often require locking in your money for a period of time, but the returns can be significantly better than any savings account.
When interest rates are moving, high-yield savings accounts can feel like a moving target. You might be earning a competitive APY one month, only to have your bank quietly lower it the next. That’s the trade-off with HYSAs: they’re flexible, but your returns may not be guaranteed.
With the Fed cutting interest rates recently, many savers are already seeing those yields drop. That makes locked-in returns more valuable than ever — and that’s where a certificate of deposit (CD) shines.
With a CD, you lock in a guaranteed rate upfront, so your earnings stay steady for a set term, even if rates slip further. It’s predictable, reliable growth, which is something you don’t always get with traditional accounts.
Raisin makes that even easier by giving you access to high-yield and no-penalty CDs from top U.S. banks, all with no fees and minimums as low as $1.
Prefer higher returns? Choose a high-yield CD for fixed, dependable earnings. Want flexibility? A no-penalty CD lets you access your money early without the usual withdrawal fees that come with a typical CD.
Whether you’re saving for something soon or building a cushion for the long haul, Raisin gives you a simple way to earn more without worrying that tomorrow’s rate changes will eat into your returns.
Debt has a bad rap for good reasons. But used wisely, it can be a powerful wealth-builder. The key, Chan believes, is knowing the difference between good debt and bad debt.
High-interest debt, like credit cards, drains your finances, while low-interest debt, like a mortgage, can help build equity in appreciating assets like real estate. To build wealth, avoid using debt to buy depreciating assets and always tackle bad debt before taking on more debt of any kind.
Paying off high-interest debt as quickly as possible frees up cash flow and reduces the amount of money lost to interest payments over time.
For those with good credit, taking out debt strategically can accelerate wealth building. You can use lower-interest loans to invest in real estate, start a business, or fund income-generating ventures — but always weigh your risk tolerance and ensure the returns beat the cost of debt.
Another smart move? Make extra mortgage payments. Even small amounts can slash interest costs, speed up loan payoff, and boost your home equity, giving you more financial freedom.
Using ‘good debt’ to your advantage in a smart investment is one way for Americans to secure their financial future. But there are some other creative ways to get into real estate using hard-earned savings, other than leveraging your FICO score.
If you’re more interested in the long term earning potential of short-term stays, you can get into this market for a mere $100 minimum. Real estate platform Arrived offers you access to shares of SEC-qualified investments in rental homes and vacation rentals, curated and vetted for their appreciation and income potential.
Backed by world class investors like Jeff Bezos, Arrived makes it easy to fit these properties into your investment portfolio regardless of your income level. Their flexible investment amounts and simplified process allows accredited and non-accredited investors to take advantage of this inflation-hedging asset class without any extra work on your part.
Another option is the Arrived Private Credit Fund, which invests in short-term loans for real estate projects such as renovations.
Investors can receive monthly interest payments on these loans, which have historically yielded around 8.1% annually. These funds back projects like renovations or new home construction, with loans secured by residential property.
Despite how easy some of these options make real estate investing look, there is a lot of market research and capital planning happening in the background. You may prefer to go with a professional based on your comfort level, especially if there is a lot of money at stake.
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