Are Americans Saving Too Much?

Daniel Kelley |

Are Americans Saving Too Much?
American spending habits have taken a clear direction.

Provided by Kevin Guarino


Among the many changes arising from the pandemic, one of the most noticeable was a change in American spending habits.

A survey released in March 2021 by Pew Research shows that Americans have increasingly chosen to put away what extra money they have rather than invest. It spreads across all income levels, with a 32% increase of wealthier Americans saving more, 17% more for those at lower incomes, and an overall increase of 23%. Studies show that the total may amount to $1.8 trillion, and is expected to increase to $2.5 trillion by the summer.1

What’s the bottom line here? Wealthier Americans already tend to put away cash, and it’s not unusual for that to increase during difficult times (the same thing happened in 2009, leading into the so-called “Great Recession”). The problem is that money sitting on the sidelines isn’t moving through the economy. This has many potential results for the American economy, including diminishing growth and further economic inequality.

In a country where Americans are getting stimulus checks and extended unemployment benefits, the message between the lines seems to be “please spend money.” While it’s a perfectly normal instinct to sock away extra money when you have it, there are cumulative effects for the economy if not enough money gets invested.

You may be ready to have a conversation about what to do with the money you’ve put away. Needless to say, I look forward to discussing the matter with you.


Kevin Guarino may be reached at 585-899-3940 or

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Securities and Advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. Additional advisory services offered through Clover Leaf Financial, a registered investment advisor and separate entity from LPL Financial.

1., March 15, 2021

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