While many Americans say inflation is eating away at their budgets, more than nine in 10 people are saving money for something this year, according to a new survey by financial technology provider Plinqit. Respondents said they were setting aside money this year for emergency funds (43%), travel (43%), and to pay down or pay off debt (42%). More than one in three respondents (35%) were saving for retirement. Respondents continued to save money even as three in four said inflation was outpacing their incomes.
Younger individuals were more likely to be saving than older adults, with 94% of respondents ages 18-55 saving money compared to 85% of those ages 65 and older. Younger individuals were more likely to be saving to pay down debt, purchase a vehicle or for a major life event. Only about a quarter of younger adults (27%) were saving to purchase a home, which mirrors the current trend of declining mortgage applications, the report said.