Number of the Day Shows Personal Savings Dwindling

Our take on the most relevant or interesting figure in personal finance today

Number of the Day

That’s how much of the country’s disposable income was being saved in August—the smallest share since March, when COVID-19 initially crushed the economy. 

The monthly personal savings rate, a measure of what people held on to rather than spent, climbed as high as 33.6% in April, when the federal government began paying recipients of unemployment benefits an extra $600 a week and issued most Americans one-time stimulus checks. The rate has steadily declined since, reaching in August the lowest level since the 12.9% seen in March, the Bureau of Economic Analysis (BEA) said Thursday.

Showing a similar trend, personal income declined by 2.7% between July and August, falling to $19.5 trillion—the lowest level since March—after the extra $600 a week expired at the end of July. Nationally, Americans received $686.9 billion less in unemployment insurance in August than they did in July.

If your savings are dwindling, make sure you’re budgeting. Here’s how to get started.

Article Sources

  1. Bureau of Economic Analysis. "Personal Income and Outlays." Click on 'Related Materials,' and download Table 1. Accessed Oct. 1, 2020.