Fewer People Are Saving 5/28/26

Summary

Podcast Summary: Your Money Minute – "Fewer People Are Saving" (May 28, 2026)
Host: Jessica Edinger, CNBC
Guest Expert: Mark Zandi, Moody’s Economist

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Episode Overview

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.

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Key Discussion Points & Insights

1. Declining U.S. Savings Rate

• Jessica Edinger opens by questioning listeners about their saving habits and notes that fewer people are managing to put money away.
• [00:00] - [00:14]
  • "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." — Jessica Edinger

2. Why Are People Saving Less?

• Reason 1: High net worth households are spending more.

  • Increased wealth from rising stock markets has made affluent households feel more comfortable spending.
  • "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." — Mark Zandi [00:14]

• Reason 2: Lower- and middle-income households are using savings to cover essentials.

  • Rising living costs, especially at the pump and grocery store, have forced families to dip into their emergency funds.
  • "You got lower middle income households are dipping into any savings they have to pay their gasoline bill or the grocery bill." — Mark Zandi [00:30]

3. The Broader Impact: Inflation and Spending Patterns

• Jessica notes Americans are saving less across the board.
• Inflation is cutting into disposable income, and Zandi warns of a potential danger:
  • "With inflation rising, consumers may soon start spending less and a self-reinforcing negative cycle is possible." — Jessica Edinger [00:37]

4. Potential for Economic Slowdown

• 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.

  • "Feels like we're getting to that place where people's purchasing power... 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." — Mark Zandi [00:50]

• Summary Warning:

  • "That cycle could be called an economic slowdown and potentially a recession. Something to watch for." — Jessica Edinger [01:04]

5. Staying Informed

• Edinger encourages listeners to keep up with the economy via CNBC resources.
  • "Keep up on the US economy at CNBC.com" — Jessica Edinger [01:10]

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Notable Quotes & Memorable Moments

• “When your stocks keep going up, you feel so rich. Why save?” — Jessica Edinger [00:22]
• “You got lower middle income households are dipping into any savings they have to pay their gasoline bill or the grocery bill.” — Mark Zandi [00:30]
• “With inflation rising, consumers may soon start spending less and a self-reinforcing negative cycle is possible.” — Jessica Edinger [00:37]
• “Feels like we’re getting to that place where people’s purchasing power... is going to start to decline… then you get into kind of a self reinforcing [cycle].” — Mark Zandi [00:50]
• “That cycle could be called an economic slowdown and potentially a recession. Something to watch for.” — Jessica Edinger [01:04]

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Timestamps for Important Segments

• [00:00] — Introduction & Main Theme
• [00:14] — Two Main Reasons for Declining Saving Rate (Mark Zandi)
• [00:22] — “Why save?” psychology among investors (Edinger)
• [00:30] — Rising costs forcing lower-income households to dip into savings (Zandi)
• [00:37] — The risk of a negative economic cycle starting (Edinger)
• [00:50] — Zandi on declining purchasing power and risk of slowdown
• [01:04] — Warning: Possible recession ahead (Edinger)

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Closing Notes

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.

Transcript

[A]

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.

[B]

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.

[A]

When your stocks keep going up, you feel so rich. Why safe? Here's more from Moody's economist Mark Zandi on cnbc.

[B]

Also because you got lower middle income households are dipping into any savings they have to pay their gasoline bill or the grocery bill.

[A]

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.

[B]

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.

[A]

That cycle could be called an economic slowdown and potentially a recession. Something to watch for. Keep up on the US [e-mail] I'm Jessica Edinger. CNBC

[C]

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