Americans are running through pandemic savings – Thelocalreport.in

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(NewsNation) — Americans who saved money during the pandemic are quickly burning through those savings now and spending more than in previous years.

Americans saved at record rates During the start of the COVID-19 pandemic, but changing habits have driven those saving rates to new lows.

Working from home and receiving stimulus checks meant many Americans could put aside extra cash in the early years of the pandemic. Now people are dipping into that saved cash and putting aside less than before.

Savings rates hit a seven-year low of 2.3 percent, even as personal incomes have risen when compared with previous years.

As with many things, income bracket makes a big difference in how Americans saved and spent. Richer households saved more during the pandemic due to decreased expenses, while poorer households benefited more from stimulus checks. Lower-income households are also burning through their savings faster.

One big reason for the dip is inflation. With everyday items such as groceries rising in price, the extra income doesn’t go as far as it might have previously. For many people, the rise in income hasn’t been enough to keep pace with inflation.

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