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80% of American Households Are in a Worse Financial Position Now Than They Were Before the Covid Pandemic Hit – What You Can Do to Keep Your Head Above Water

November 16, 2023

by Jeannine Mancini Yahoo! Finance

The latest Federal Reserve study revealed a concerning trend among American households, particularly those outside the wealthiest 20%, according to a Bloomberg report. Since the onset of the COVID-19 pandemic, they have depleted their extra savings and have less liquid assets than they had before the pandemic began. If this is you, consider speaking to a financial advisor.

As of June, the bottom 80% of households by income, when adjusted for inflation, had lower bank deposits and other liquid assets compared to their status in March 2020. The decline marks a significant shift from the initial phases of the pandemic, where various factors, including government financial support and restricted spending opportunities during lockdowns, led to an accumulation of excess savings.