U.S. households across the board built up savings during the pandemic, but low-income households are burning through their cash more quickly than higher-income families and could be out of savings soon if more aid is not delivered, according to a study released on Wednesday.
By the end of October, the median low-income family spent 64 percent of the extra cash they accumulated this year compared with last year, leaving them with about $236 in extra cash, according to a report released Wednesday by the JPMorgan Chase Institute. In contrast, higher-income households lost just 38 percent of the cash cushion built up this year, and had a median $810 in savings, the study found.
