{
  "id": 6253927,
  "title": "Depleted Savings Weigh on Consumer Spending Outlook",
  "url": "https://urgent.news/2026/09/08/depleted-savings-weigh-on-consumer-spending-outlook",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-08T08:00:57.000Z",
  "source": {
    "name": "PYMNTS",
    "slug": "pymnts",
    "url": "https://www.pymnts.com/consumer-insights/2026/depleted-savings-hamper-consumer-spending-outlook/"
  },
  "original_language": "en",
  "account": "A new report reveals that depleted savings are becoming a critical factor in determining the financial stability of households. According to the PYMNTS Intelligence study \"Household Finances Flash a Warning Behind Stable Consumer Confidence,\" 19% of households reported their financial lifestyle deteriorated in the previous year, while only 7.1% said it improved. The amount of savings a household had played a significant role in whether they could handle financial hardships or fell into financial difficulty. Among households that were living paycheck to paycheck without issues a year earlier, 66% of those who later struggled financially had exhausted their savings in the past 90 days or never had savings to begin with. Only 37% of those who remained comfortably paycheck to paycheck and 25% of those who moved out of paycheck-to-paycheck living experienced the same outcome. Households with depleted savings faced greater challenges covering large expenses, with only 26% able to cover more than three months of expenses from savings, compared to 46% whose financial situation remained stable and 62% whose finances improved. The report also highlighted the widespread impact of higher everyday costs, with 71% of households whose bills became harder to pay saying that essential prices had outpaced their income, a concern shared by 76% of those whose financial lifestyle remained stable. Unexpected bills exposed the consequences of having little financial cushion, with 28% of households facing an expense of at least $1,200 during the previous 90 days. The report found that 34% of households living paycheck to paycheck and struggling to pay bills faced such an expense, compared with 27% among households not living paycheck to paycheck. Payment choices changed as households' ability to absorb costs evolved. Among struggling paycheck-to-paycheck households, 36% covered their largest unexpected expense with cash, checking, or savings, while 56% of households not living paycheck to paycheck did so. Additionally, 35% carried a credit card balance, 27% borrowed from family or friends, 21% skipped or delayed a bill, 15% used a payday loan, cash advance, or overdraft, and another 15% used buy now, pay later (BNPL). For banks and financial providers, the findings underscore the importance of liquidity as a practical pressure point, with a need for savings tools that help households maintain emergency reserves and payment and credit products that allow consumers to manage unavoidable expenses without exhausting those reserves.",
  "summary": "Savings are becoming a dividing line in household finances, separating consumers who can absorb an expensive surprise from those pushed into financial difficulty by it. The PYMNTS Intelligence report “Household Finances Flash a Warning Behind Stable Consumer Confidence” found in August that 19l% of households said their financial lifestyle had deteriorated during the previous year, […] The post…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}