Savings
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Households Burn Through Savings Left Over During Pandemic
The pandemic-era cushion of savings that many households built up is rapidly diminishing. According to an estimate from Goldman Sachs, Americans have already spent down about 35% of their extra savings accumulated during the pandemic as of mid-January. By the end of the year, the company predicts that roughly 65% of that money will be exhausted. In 2020 and early 2021, government pandemic stimulus and reduced spending on non-essential items such as dining out and travel, led to an accumulation of extra savings by households. According to Moody’s Analytics, households…
