Although the pandemic has been quite harrowing on the majority of US families, there is one important positive that has come out of the national crisis. American families are officially saving more now than they have in a 39-year time span! This may be a win when it comes to added preparation, but economists fear that the sluggish spending associated with these high savings levels could wreak havoc on the economy overtime. They suggest that a happy medium is to save ten to twenty percent of your income.
- While the coronavirus pandemic has caused a lot of economic turmoil, Americans are beginning to increase their savings.
- At the moment, credit card usage and spending, as well as incomes, are down.
- While the economy might take some time to recover, saving is always a good idea.
“The March 2020 personal savings rate was 13.1 percent—a rate not seen since 1981, during the Reagan years.”