The dwindling saving rate underlines just how much inflation running near a 40-year high has forced people into tough choices when it comes to expenses. With everything from food and gas to weddings and trips to the dollar store costing more, setting money aside is harder and harder. That’s especially true for those on the lower end of the income spectrum, and people are now tapping into whatever they stockpiled earlier in the pandemic, when the government was giving out stimulus checks.“High- and middle-income households still have some savings amassed,” said Diane Swonk, chief economist at Grant Thorton, in a commentary. Lower-income ones “have now tapped what little they had in excess reserves and are struggling to make ends meet. Inequality is worsening.” Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
