Americans Are Only Saving A Tiny Fraction Of Their Income. Here’s What That Means For The Economy.

As rising price levels continue to pressure American families, many appear to be dipping into their savings to cover added costs.

As inflation outpaces gains in income, Americans are spending beyond their means to cover their expenses. Households saved a slim 4.4% of their after-tax income in April — the lowest level seen since 2008, according to a Bureau of Economic Analysis report released on Friday. Meanwhile, Federal Reserve data indicate that balances for credit cards and similar types of debt soared at a 35.3% annualized rate in March — the fastest one-month surge since 1998, according to The New York Times.