Americans are savings less these days. Here's why and what that means

Americans’ saving rates have declined to the lowest level in over a year, indicating a long-term trend of decreased savings. Economists suggest that this trend puts households, particularly those with low incomes, at risk. While the saving rate has historically rebounded after each recession, the post-Covid era has seen a structurally lower saving rate. This has contributed to robust consumer spending, supported by pandemic-related stimulus and a strong job market. However, the lower saving rate also leaves households financially vulnerable. The shift in saving behavior reflects a change in consumer psyche, with households prioritizing spending rather than saving.