Americans Embrace ‘Revenge Saving’ Amid Economic Uncertainty

In a shift from the post-pandemic “revenge spending,” Americans are now prioritizing savings, a trend termed “revenge saving.” The U.S. personal savings rate rose to 4.9% in April 2025, up from 4.1% in January. This change is driven by economic uncertainties, including volatile tariff policies and inflation concerns. High-income households are cutting back on nonessential spending, focusing instead on building emergency funds.

Read the article to know why experts recommend automating savings and creating specific fund categories to enhance financial planning.

https://www.marketwatch.com/story/americans-are-revenge-saving-after-years-of-splurging-savings-are-a-great-way-to-have-some-certainty-f676a037?

Vocabulary Questions:

1. What does the phrasal verb “shake something up” mean? “After years of “revenge spending” in the wake of the pandemic, Americans have a new No. 1 financial priority in 2025 as the Trump administration’s ever-changing tariff policy unsettles the U.S. economic outlook, increases retail prices and shakes up the stock market.” Use it in a sentence.
2. What does “buckle down” mean? “New data indicate that Americans are buckling down when it comes to their finances. The personal savings rate, or the percentage of people’s disposable income that they save, increased to 4.9% in April from 4.1% in January, according to a report released Friday by the Bureau of Economic Analysis.” Use it in a sentence.
3. What does “volatility” mean? “Americans are now “revenge saving” after years of high inflation and as they face the prospect of continued economic volatility.” Use it in a sentence.

Discussion Questions:

1. Have you ever shifted your habits from spending to saving due to uncertainty like during the pandemic or inflation spikes?
2. What do you think motivates people more to save: fear of the future or a specific financial goal?
3. Do you believe “revenge saving” is sustainable long-term, or is it just another temporary financial trend?
4. In your opinion, is automating savings a smart strategy, or do people need more flexibility with their finances right now?
5. How do you personally balance treating yourself vs. preparing for economic uncertainty in your financial routine?