American's Savings Increase during Pandemic Shut-down

Em in Ohio

Senior Member
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OH HI OH
(From Accuweather post)

"May 30, 12:12 p.m.
U.S. saving rates have hit 33% in April — a new record high — amid the coronavirus pandemic, according to the U.S. Bureau of Economic Analysis. According to CNBC, this rate, which shows how much people save as a percentage of their disposable income, is the highest since tracking began by the department in the 1960s. This number nearly triple the amount of March’s 12.7% saving rate. With the record savings rate, spending declined by a record 13.6% in the month of April. “The saving rate is the residual of an extraordinary event,” Diane Swonk, chief economist at Grant Thornton, told CNBC."

I have zero disposable income. My April credit card spending was also zero and my bills are paid! I'm not exactly contributing to rebuilding the economy, but it is nice to see minimal cash depletion.

Perhaps our priorities have changed and we have discovered that we can get by without 'luxuries.'
 

I wonder how much of this if any is attributable to the stimulus checks hitting people's accounts. :unsure:
Hmmm - you mean that $1200 we were supposed to go out and blow immediately? Mine is still sitting in the bank and staying there as long as possible! More likely, it's the $600 a week unemployment bonus that gave so many a freaking raise they did nothing to deserve, in my opinion!
 
Hmmm - you mean that $1200 we were supposed to go out and blow immediately? Mine is still sitting in the bank and staying there as long as possible! More likely, it's the $600 a week unemployment bonus that gave so many a freaking raise they did nothing to deserve, in my opinion!

i agree , not linking the 600 to income and prorating it is nuts .... i worked one day a week .... i m getting 2x my pay in unemployment ...even i think it is crazy ..
 
i agree , not linking the 600 to income and prorating it is nuts .... i worked one day a week .... i m getting 2x my pay in unemployment ...even i think it is crazy ..
Congratulations on your good fortune; but yes, it seemed ridiculous to me when suggested and I couldn't believe it passed.
 
With the stimulus adding 1 trillion to the deficit & the savings increasing not hard to figure out that the only stimulus happening is in peoples savings.
 
I certainly have been saving money since the shut down. Some of the contributing factors of that are:
1. Not driving 40 miles every day to work and back.
2. Not buying lunch every day.
3. Not being able to go out to restaurants.
4. Stimulus debit card went to pay property taxes, so didn't have to take as much out to pay them.

That debit card - I could have easily thrown it away by mistake. Only didn't because I heard someone else complain about doing that very thing and having to get another card sent out.
 
That's great if people who are uncertain about having a job are saving the stimulus. Fortunately, we aren't in that position, so we decided to use the checks as intended to help stimulate the economy. We bought a new washer/dryer and bed and still have some left over. Ours were on their last legs and because we're frugal types, we were putting off buying new. We figured this would be a win-win for us and the economy. Now the problem is getting them delivered because there is a backlog. We've had deliveries of all put off because they can't get the products.

I only received my stimulus check last week and was surprised it was an actual check and not a debit card.
 
Some is probably due to places of amusement and holiday-ing all being closed. Can't spend it for fun so may as well bank it until I can.
 
Well, I'd initially thought a small amount of savings would be an option, but it hasn't worked out that way. As clients are hit by the coronavirus and its effects, that 'hit' has been passed along to me. So I haven't had any work, and, thus, no pay, since the last week in April. So, much of the stimulus check has been going for regular bills. It's getting worrisome, as I don't know when or if work will return to normal.
 


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