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QUOTE, my italics:
The personal saving rate—the share of disposable income households sock away each month, at an annual rate—hit an all-time high of 33.8% in April 2020, up from 8.3% in February 2020, and remained elevated through this summer, Commerce Department data show.
While the rate has since dropped, households have nonetheless built up a $2.7 trillion stock of “excess savings”—the amount above what they would have had there been no pandemic—as of Sept. 30, 2021, according to Moody’s Analytics. For households that earned between roughly $45,000 and $69,000, the typical family’s checking account rose by more than half between January 2020 and this spring to above $3,000, according to the JPMorgan Chase Institute. [END QUOTE]
This comes as a surprise to me with all the talk about inflation. Although the quoted "$3,000" was at the end of summer 2021 and the rate of saving has since dropped, I am thinking that people have been saving because they haven't been going out all that much and spending as much on non-essential items. And even though wages have gone up for most low-paying jobs (whoever thought a burger flipper would be making $15 an hour?), I would think that the added income would not result in increased savings but would go to paying for things like a new car or car repairs or paying off debt.
What are your thoughts? And are you saving more now compared to a year ago? (And if so, why -- more income or less spending, or both?)
NOTE; CHANGED THREAD TITLE AFTER BEING CORRECTED! (Sorry.)
Last edited by katharsis; 12-19-2021 at 05:00 PM..
I don't use my checking account for savings and only keep an extra $400 in there at any time.
I move money to my checking account when I need to write a check.
I don't use my checking account for savings and only keep an extra $400 in there at any time.
I move money to my checking account when I need to write a check.
Checking accounts for savings ?
Of course, my savings picture now at age 68 is much different than it was 40 years ago, but I didn't even have a savings account until I was almost 30. When I was in my 20's, it was all I could do to keep a positive balance in my checking account.
HA! What's savings? EVERYTHING we earn especially during this time, with 3 birthdays last month, christmas this month and another birthday next month is GONE as soon as we get it. Bills get paid, then stuff we need for house and car then ANYTHING like birthdays or things we may want which isn't much gets paid...there is no savings. Ever. Its sad but that's life in a country that coddles the rich and hates the poor and those TRYING to make their lives better.
I don't use my checking account for savings and only keep an extra $400 in there at any time.
I move money to my checking account when I need to write a check.
Checking accounts for savings ?
Same here, except at this point I keep nothing at all in the bank except for checking and a tiny savings in case I screw my checking account up and overcharge. Everything else (besides that little bit for the bills) comes out and get socked away--complete out of the system.
HA! What's savings? EVERYTHING we earn especially during this time, with 3 birthdays last month, christmas this month and another birthday next month is GONE as soon as we get it. Bills get paid, then stuff we need for house and car then ANYTHING like birthdays or things we may want which isn't much gets paid...there is no savings. Ever. Its sad but that's life in a country that coddles the rich and hates the poor and those TRYING to make their lives better.
Well might be time to look for a better paying job.
Is $3000 in savings really a measure of "Middle"-class here?!
Seems low.
The US constantly lowers the bar. I've seen where people getting welfare being called "middle class".
It's now a perception rather than a financial level.
The last Pew Survey showed that only 10% of Americans consider themselves "poor".
Is $3000 in savings really a measure of "Middle"-class here?!
Seems low.
My mistake.(SORRY!) as the last time I checked, the average U.S. household income was in the high 50's! The article did specify incomes between $45,000 and $69,000, which I had thought would be middle income. However, the average U.S. household income was close to $67521 in 2020, according to the link below.
So I would conclude that the article refers to those in the lower-middle income level. (??)
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