Household savings are thinning. Here’s how to put money back in your pocket.

People aren’t boosting their savings much even as wages rise and inflation slows.

Households socked away about 3.9% of their disposable income as of May, the latest federal data shows, down from 5.3% in May of last year, when consumer price increases and the job market were both running hotter. Today, the savings rate is back down to around its levels two years ago after falling from pandemic peaks north of 24%, and remains lower than the 7% range in 2019.

Blame it on steep living costs and high interest rates that have made it tough to save in an otherwise strong economy.