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How to understand who saved during the COVID-19 pandemic
Americans saved a lot of money during the COVID shutdown, but one group not only stopped saving, they still can't. FOX 5 I-Team's Dana Fowle explains why.
ATLANTA - There are two stories of savings during the COVID-19 pandemic: those who added to their nest egg, and those who had to use their savings to survive.
According to a new economic study, Americans added almost $4 trillion dollars to their savings accounts. Almost all of it went to the wealthiest 20 percent. The working class, particularly single women with children, took big financial hits.
When the world shut down March 2020, many people had the luxury of working from home which meant their costs went down. There was no eating out, no childcare costs, or fuel costs. Huge savings.
Yes, the unemployed got government assistance that put food on the tables; but there’s another group. The front-line, hourly workers still had to go to work. SaverLife, a program designed to help people create savings and financial literacy, reveals this group found it nearly impossible to save money during this time.
Two tales of pandemic savings: those who made money and those who lost money.
The women in the SaverLife program are people who are there because they want to learn more about how to save. They are women earning between $25,000 and $35,000 a year. Seventy percent of them didn’t save during the pandemic and were most likely hourly workers. Thirty-eight percent report not getting enough hours to support their families because the world shut down, and they had to turn down shifts to be home with children who were learning virtually, so nine percent of them could not set aside any money.
Certified financial planner Tania Brown consults with SaverLife.
"This money is being used to survive. I want to make that clear: rent, clothes for the kids. These are essentials. I want to emphasize these are women trying and doing their best."
Inflation, which is running higher in metro Atlanta than many parts of the country, mean their hourly income isn’t allowing them to keep up with the current prices. What we do know that will help as reported by SaverLife and Fox Business is the IRS's Child Tax Credit. The new, bolstered amounts added 33 percent savings for families.
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