American households have depleted a staggering $3 trillion in savings over the past three years, according to data from the Commerce Department. Between March 2020 and August 2021, families accrued around $2.1 trillion in extra cash, largely due to stimulus checks and pandemic-induced slowdowns. This wealth has since vanished, leaving a negative balance of nearly $900 billion by the second quarter of 2024. The savings rate has plummeted from 4.1% in February 2025 to 3.9% in March, illustrating just how strained consumer finances are. 5%-6% savings were common pre-pandemic. This stark gap reveals the struggles American consumers face as they try to keep pace with spending and rising debt.