
Your 60-second money minute. Today’s topic: Fewer People Are Saving
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With a CNBC your Money minute. I'm Jessica Edinger. Are you putting money away? Do you have a good emergency fund built up? Turns out the US Saving rate is going down and there are two big reasons why.
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The saving rate, which has come way, way down, in part because high net worth households are spending more because they feel like they can given their increased wealth to stock wealth.
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When your stocks keep going up, you feel so rich. Why safe? Here's more from Moody's economist Mark Zandi on cnbc.
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Also because you got lower middle income households are dipping into any savings they have to pay their gasoline bill or the grocery bill.
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Bottom line, Americans are saving less. And Zandi notes that with inflation rising, consumers may soon start spending less and a self reinforcing negative cycle is possible.
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Feels like we're getting to that place where people's purchasing power, at least again an aggregator is going to start to decline and that might be the trigger for them to start pulling back and becoming more cautious in their spending. And if that happens, then you get into kind of a self reinforcing.
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That cycle could be called an economic slowdown and potentially a recession. Something to watch for. Keep up on the US economy@cnbc.com I'm Jessica Edinger. CNBC
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Podcast Summary: Your Money Minute – "Fewer People Are Saving" (May 28, 2026)
Host: Jessica Edinger, CNBC
Guest Expert: Mark Zandi, Moody’s Economist
This episode dives into the worrying trend of the declining U.S. personal saving rate. CNBC's Jessica Edinger highlights fresh data and, with insight from Moody's economist Mark Zandi, explores why Americans are saving less, who is most affected, and how it might signal broader economic trouble ahead.
Reason 1: High net worth households are spending more.
Reason 2: Lower- and middle-income households are using savings to cover essentials.
As inflation persists, people’s purchasing power could erode further, prompting consumers to pull back on spending.
This behavior could trigger a cycle of declining demand—potentially leading to recession.
Summary Warning:
Jessica Edinger and Mark Zandi paint a sobering picture: declining U.S. saving rates are not just statistical quirks but real signals of financial stress for many Americans and a warning sign for the broader economy. Staying financially vigilant—and informed—matters now more than ever.