The Economy & the Fed

Personal Saving Rate

The share of disposable income, the money left after taxes, that households do not spend. A saving rate of 4% means people saved $4 of every $100 they had to spend. It falls when spending grows faster than income, which can keep the economy going for a while but leaves households with a thinner cushion; it rises when people grow cautious. It jumped above 30% in April 2020, when lockdowns closed stores and stimulus checks arrived, and has mostly run between 3% and 8% since the 1990s.

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