First came spending. Now comes saving.
Months of lockdown during COVID-19 combined with relief checks compliments of the coronavirus rescue package put many Americans — especially those of greater means — in the mood to spend. Vacations, restaurants, and shopping were common as media coverage, economists, and even policymakers encouraged consumer spending as a way to jump-start a downtrodden economy. At the same time, those of more modest means also found themselves spending more thanks to inflationary pressures.
Regardless of where they spent money, members in both groups eventually found increased spending had finagled with their finances, decreasing rainy day savings and pushing up credit card delinquencies for middle- and lower-income households.
Today, people are taking a different approach to their financial management, and the concept of “revenge saving” is garnering buzz in the business press and consumer broadcasting alike.
What Is Revenge Saving?
The term originated in China to describe a mindset shift that reflects a more disciplined approach to money management.
In the United States, the phrase represents a collective turn toward frugality. After the free-spending and high-cost days that followed COVID-19, many households are trying to rebuild their financial footing. Dwindling emergency funds, runaway yet controllable expenses like subscriptions and travel, and ballooning costs for everyday essentials combined with a cloudy economic outlook are all fueling the shift toward saving.
What makes this trend different from regular frugality, though, is the tinge of anti-consumer mindset that accompanies the dollar and cents budgeting.
Fashionable Frugality?
Whether today’s revenge saving is different from plain old frugality, younger Americans do appear to be putting some thought into prudent money management.
A full 72% of young adults in 2025 took steps to improve their financial health, including by building savings and paying down debt. Sixty-four percent focused on reducing expenses by cutting back on dining out, shopping at more affordable grocery stores, and more. According to a May 2025 study by the Bank of America Institute, spending on airlines and lodging per household has fallen more than 5%. Meanwhile, year-over-year changes in debit and credit card transaction growth are much more modest than a few years ago.
This is especially good news in light of data showing the U.S. personal savings rate is at a remarkably low point. The fact a few more Americans are embracing thrift suggests hope for the doom spending that’s endemic in more than a quarter of younger Americans.
What Does It Mean For Your Credit Union?
More savers means more deposits for credit unions and a stronger financial foundation for members — a trend well worth watching and tapping.
According to a June 2025 survey from Santander Bank, just 38% of Gen Z savers who know their interest rate are earning 3.00% APY or more. That’s an opening for credit unions to attract young members with competitive, high-yield products and prove the value of cooperative banking.
If that sounds a bit too pollyannish, consider this: If members are saving more, they’re likely anxious about the state of the world. Nobody wants to save for a rainy day, after all, they save because having an umbrella is better than getting soaked. By leaning into that mindset, credit unions can meet members where they are today and help them develop a better financial discipline for the future. In doing so, they not only grow balance sheets but also deepen trust that will outlast any economic trend.