In many countries, while working hours were reduced across the globe and many lost their jobs entirely, people are actually saving much more during the pandemic.
That’s because during an economic slowdown, they reduce their expenditure. This pandemic also saw governments around the world helping to alleviate some of the pain through grants, special payouts or tax reliefs to both businesses and individuals.
Changes in saving rates in the US throughout the pandemic
The fact that dining out has been curtailed by restrictions, and the need for transport has also reduced as we work from home, we actually see – unsurprisingly – a spike in savings.
There’s also a lesser need to meet friends, and with minimised interactions with others, there are really fewer opportunities to spend money, from clothes, to meals and concert or movie tickets. Some people might have been made redundant during this pandemic, and that also resulted in accelerated rate of savings.