After years of splurging on post-pandemic travel, dining, and shopping, Americans are shifting gears. A new trend—dubbed “revenge saving”—is taking hold as households confront economic uncertainty, rising prices, and volatile markets.
Business owner Sabrina Jones, who runs two companies in Spokane, Washington, noticed a surge in employee participation in workplace emergency savings accounts. Her staff are not only contributing more, but also treating savings as a form of control in an unpredictable economy. “There’s so much uncertainty out there,” Jones said. “Savings are a great way to have some certainty.”
The data back her up. The U.S. personal savings rate rose to 4.9% in April, up from 4.1% in January, according to the Bureau of Economic Analysis. A Santander Bank survey found that nearly 60% of Americans recently updated their savings goals, with emergency funds topping the list. Meanwhile, SecureSave reported that average balances in employer-sponsored savings accounts jumped 32% over the past year.
Even high-income households are cutting back. Deloitte found families earning over $200,000 have become more price-conscious, scaling back on luxury travel and nonessential spending. Across the board, people are canceling subscriptions, switching service providers, and cooking at home more often.
What’s driving the shift? Experts point to tariff-related economic pressures, stock market jitters, and anxiety about inflation and recession risks. Financial planners now advise households to build emergency funds covering six to twelve months of expenses—far more than the old three-month rule.
As Jones puts it, saving is becoming “the new cool.” While debt once seemed tolerable in exchange for lifestyle perks, Americans are rediscovering the power of cash reserves and the peace of mind that comes with financial resilience.