Many Americans are saving less and struggling to afford basic necessities, analysis shows

Many Americans are saving less than in previous years.

The personal savings rate for people in the U.S. hit 3.8%, according to the Bureau of Economic Analysis.

The bureau defines the personal savings rate as the personal savings rate as a percentage of disposable personal income. In other words, it's the percentage of people's income remaining after they pay taxes and spend money.

That 3.8% number is the lowest mark in nearly 4 years.

"People are spending more and saving less, and some people are even going into debt, and I attribute that to rising costs," University of San Diego Economics Professor Alan Gin Ph.D. said.

The report shows that consumer spending in September spiked on gasoline but also on other essential costs like housing, transportation services, health care and insurance.

The most recent data from the Bureau of Economic Analysis was released shortly after a Pew Research Center survey shows that many Americans are struggling to afford their basic necessities.

• 60% say they do not currently have enough income to lead the kind of life they want

• 53% say they do not have emergency funds that would cover their expenses for three months

• 27% cannot pay some of their monthly bills or can only make partial payments

• 32% say they worry every day or almost every day about healthcare costs and the amount of debt they have

Data from Rice University's Kinder Institute in early 2026 echoes that. The annual "Kinder Houston Area Survey" shows that lower and middle-income households say they are struggling the most, with 79% of those earning less than $25,000 unable to cover an unexpected $400 expense.

Economists tell ABC13 this matters for everyone because the economic hardship other people face could eventually affect the whole economy.

"If you're doing okay, and you have a steady income and a good job, it appears not to affect you, but if other people start cutting back in terms of purchases of goods and services, the company you work for may be impacted and if your company is impacted, that then could affect your job," Gin said.

Gin said he will continue to keep a close eye on inflation, which he said will continue to affect how much the average American can save.