Americans’ Savings Took a Massive Hit in 2022 — but Women Had It Worse Than Men

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That’s upsetting, but not all that surprising. 

There’s a reason people are encouraged to maintain healthy savings account balances. If a financial emergency strikes — say, you lose your job or your home needs a major repair — that money could help you pay your bills or cover a sudden expense so you don’t have to resort to racking up a costly balance on your credit cards.

Meanwhile, a recent report by SecureSave found that 54% of Americans saw their savings decrease in the course of 2022. And that’s not all that shocking, given the way inflation drove living costs upward last year in a very big way. The problem, though, is that women seem to have been disproportionately affected by inflation compared to men.

Women’s savings took a much larger hit

A good 43% of men saw their savings balances decline in 2022. But 64% of women saw their savings shrink, and that’s a much larger percentage.

A big reason for that could boil down to the gender pay gap. Women are statistically likely to earn less than their male counterparts when they work similar jobs and have comparable experience. And at a time when inflation is soaring, lower wages can easily translate into having to dip into savings more frequently.

Building back up

It’s very easy to see why so many people had to tap their savings in 2022, thereby whittling their balances down. But it’s important for men and women alike to do what they can to rebuild.

First of all, the more money you have in the bank, the more financial protection you give yourself in general. But also, economists aren’t done sounding the recession warnings we heard repeatedly last year. And while we’re not seeing too many troubling signs this early on in 2023, economic conditions do have the potential to worsen over the next 11 months. As such, now would be a good time to build up a savings account that’s been raided repeatedly.

Of course, because inflation is still with us, finding ways to save money can be tricky. But one solid option is to lean into the gig economy. There are plenty of opportunities to pick up work on the side of a main job, whether it’s doing something flexible, like driving for a ride-hailing company, or picking up shifts at a local store or restaurant that needs help in the evenings and on weekends.

Cutting back on spending is another great way to replenish a whittled down savings account. But because of inflation, that’s a difficult ask.

Still, there may be some steps you can take to cut back on spending a bit, whether it’s canceling a streaming service you can live without or implementing one no-spend weekend a month, even if it means spending your Saturday and Sunday entertaining yourself at home. Even a really small step like coupon-hunting prior to grocery shopping could make a difference.

It’s not a shock that Americans’ savings balances declined in 2022. And it’s not even that surprising to learn that women had it worse than men. But anyone whose cash reserves shrunk last year should do what they can to build back up — before economic conditions worsen.

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