American Households' Savings Have Increased By $2.5 Trillion Since the Onset of COVID
September 26, 2022 (Investorideas.com Newswire) According to MoneyTransfers.com, US household savings balances have increased by $2.5 trillion since the CODIV-19 pandemic began.
Speaking on the data, MoneyTransfer.com CEO, Jonathan Merry, said. "It's really quite incredible to see such a huge increase in savings during what has been such a difficult time for so many people. It just goes to show how much people have been able to cut back on their spending, and how they are now in a much better position to weather any future financial storms."
Merry went on to say that the data suggested that people were now "thinking more long-term" and were "more cautious with their money."
Interest Rates on Savings
Notably, the swift decline in interest rates on savings has not halted or slowed the growth of the savings account balance total in the U.S. Instead, it has actually contributed to the increase in savings as people seek to preserve the value of their money.
Saving refers to the strategy of squirreling away money for future use. The purpose of saving is to have the funds available when you need them, whether for a rainy day or a retirement nest egg.
Inflation Hurts Savings
Inflation has been a key concern for savers in recent years. When prices rise, the purchasing power of your savings goes down. In other words, your money doesn't go as far as it used to.
One way to protect your savings from inflation is to invest in assets that have the potential to keep pace with or exceed the rate of inflation. This includes stocks, real estate, and certain types of bonds.
Another way to combat the effects of inflation is to regularly adjust the amount you save each month to account for the rising cost of living. Full story and statistics can be found here: American Households' Savings Have Increased By $2.5 Trillion Since the Onset of COVID
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