Americans's personal saving rate drops to 2.6% in April 2026
Americans are saving less than they have in years, with the personal saving rate dropping to just 2.6% in April 2026, the lowest since mid-2022.
That's a big shift from last year, and it's mostly because everyday expenses are getting tougher to manage.
Inflation 3.8% outpaces wages 3.6%
Inflation jumped 3.8% over the past year, while average wages only grew by 3.6%.
Essentials like groceries, health care, utilities, and even gas (now averaging $4.43 per gallon) are eating up more of people's paychecks.
Americans expect credit, savings shrink
People aren't spending more because they want to—they're just paying higher prices.
Many consumers expect to use credit to cover at least some expenses, leaving little room for savings.
Economist Heather Long points out this is one of the lowest saving rates seen in two decades, a sign that families are really feeling the pinch right now.