COVID Savings Cushion Shrinks for Many Americans as Prices Rise

Americans built up excess savings of $2.7 trillion during COVID from stimulus checks, enhanced unemployment benefits, and reduced spending. This provided a buffer against inflation and job loss.

71% of Americans accumulated excess savings, but 60% say they've depleted most or all of it. 90% of this group has cut back spending vs 62% of those with savings left.

Lower and moderate income groups largely spent their COVID savings and face new strains as student loans resume and credit card rates rise, increasing recession risk.

Some used the funds for home renovations and other projects but now regret it as prices have spiked. Others scraped by and have had to take loans to cover basic expenses.

While savings are dwindling for many, some socked away the money without needing it for bills. But reduced dining out and travel still cut their spending.