Revenge spending (verb): to overindulge after a period of restriction. Sound familiar?
After the great recession of 2007-2009, Americans tended to save on average between 7% and 8% of their income. Then came the global pandemic, and our savings rates soared as we had fewer opportunities to spend. In March 2020, the average personal savings rate hit 13.1%. In April 2020, it was a startling 33.1%. Average personal savings rates have come down, but they consistently stayed above 10% until just a few months ago, dropping to 9.8% in May 2021.