Personal savings in the U.S. 1960-2022

Personal savings in the United States reached a value of 686 billion U.S. dollars in 2022, the lowest figures since 2009. Personal savings peaked in 2020 at nearly three trillion U.S. dollars. Those figures were also very high in 2021. The excess savings during the COVID-19 pandemic in the U.S. and other countries were the main reason for that increase, as the measures implemented to contain its spread had an impact on consumer spending.

Saving before and after the 2008 financial crisis

During the periods of growth and certain economic stability in the pre-2008 crisis period, there were falling savings rates and growing household debt. People were confident the good times would stay and felt comfortable borrowing money. Interest rates were low and credit was easily accessible and widely available - these factors encouraged people to spend money. However, in times of austerity, people generally tend to hold on to capital. That was also the case in the wake of the 2008 financial crisis.

Savings and inflation

The economic climate of high inflation and rising Federal Reserve interest rates in the U.S. made it increasingly difficult to save money in 2022. Not only does inflation affect the ability of people to save, but reversely, consumer behavior also affects inflation. On the one hand, prices can increase when the production costs are higher. That can be the case, for example, when the price of West Texas Intermediate crude oil or other raw materials increases. On the other hand, when people have a lot of savings and the economy is strong, high levels of consumer demand can also increase the final price of products.