In the period following the COVID pandemic, there was a trend of “revenge spending” when people were desperate to dine out, travel, etc., because they felt they had missed out during the pandemic. But in more recent times, the concept known as “revenge saving” is having a moment.
Revenge saving is the desire to amass cash against unexpected cost increases during a time of economic uncertainty. It is a time where people choose to be aggressively frugal, sometimes radically paring back their spending to rebuild savings.
A Vanguard study from this past summer found that 71% of Americans said they planned to shift their savings approach to prioritize emergency savings and flexibility. Factors feeding the trend include fluid tariff negotiations, the prospect of continuing high inflation and interest rates, and concerns about geopolitics and social unrest.1
While “revenge saving” is a fresh, catchy phrase, it’s kind of an old concept.
- Gen Z’ers (born 1997 to 2012) have also popularized the term “vibe-based budgeting” this year. They are choosing to adjust their financial habits based on how the economy feels, even if their money situation hasn’t changed.2
- Baby Boomers (born 1946 to 1964) refer to it as “tightening your belt.”
- The Silent Generation (born 1928-1945), who lived through the Great Depression, has always been known for saving money. They saw how quickly it could disappear.
Revenge saving is often driven more by emotions rather than long-term planning. However, the trend does tend to encourage people to focus on their spending and saving habits as well as their financial priorities. And it may be working—according to the Federal Reserve, after a sharp dip from 2020 to 2021, personal savings rates began recovering in 2024.
If you find yourself wanting to rejuvenate your savings for any reason, please let us know. Our financial advisors can work with you to develop a solution that fits you. No revenge or vibes necessary.
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