Answer:

Americans saved 13.1% of their disposable income in March 2020, highest since 1981.

Questions:

• What do you think are the reasons that Americans are saved more of their income in March?
• Do you think this trend will continue in the next few months? Why or why not?
• Consumer spending makes up about 70% of GDP. What impact do you think a higher savings rate will have on an economic recovery?
  

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Behind the news (CNN):

Americans are so nervous about the state of the economy that they are stashing cash in the bank at a rate not seen since the first year of Ronald Reagan's presidency.

The United States government's Bureau of Economic Analysis reported Thursday morning that the savings rate surged to 13.1% in March -- up from 8% in February.
That's the highest savings rate since November 1981. Americans had $2.17 trillion in savings last month.

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About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.