The Income Divide: High-Earning Americans Are Saving More While Others Fall Behind
KEY TAKEAWAYS:
Higher-income households have the flexibility to save more, but also spend more
Rising costs have a much bigger impact on day-to-day finances for lower-income households
Lower-income households are less likely to have set financial goals
High earners are more likely to utilize high-yield savings and financial tools
Americans are cutting back in 2026, but not everyone is feeling the squeeze equally.
A new WSFS Bank survey found that while many households are cutting back on spending and saving less than they did a year ago, higher-income Americans are more likely to benefit from income growth, financial goals and savings tools that can help their money grow.
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Here's a closer look at how income is influencing Americans' financial habits and outlook.
Higher-Income Households Have More Spending Flexibility
Although consumers generally plan to spend less this year, higher-income households are more likely than lower-income households to increase spending:
45% of those earning <$35,000 report spending less
49% of those earning $35,000-$49,999 report spending less
42% of those earning $75,000-$99,999 report spending more
47% of those earning $100,000-$149,999 report spending more
"It often comes down to flexibility," said John Walters, certified financial planner and senior investment advisor at Bryn Mawr Trust. "Higher-income households typically have more room in their budgets to absorb rising costs or make larger purchases without significantly changing their lifestyle."
For lower-income households, rising costs can have a much bigger impact on day-to-day finances.
"Essential expenses already account for a larger share of their income," Walters said. "That often means they're cutting back out of necessity, while higher-income households have more discretion over when and where they spend."
How Income Shapes Americans' Ability To Build Savings
The survey found that lower-income households are less likely to report having set financial goals or experienced an increase in income, two factors that can help build long-term financial momentum. Among households earning less than $35,000, just 22% reported setting financial goals and 23% reported an income increase.
"When your budget is already stretched, it's harder to focus on long-term goals because you're often focused on covering today's expenses," Walters said. "Financial goals and income growth create positive financial momentum, making it easier to build savings, prepare for unexpected expenses and work toward longer-term objectives.
"Without those opportunities, it can feel like you're always reacting instead of getting ahead," he said.
High Earners Are More Likely To Use High-Yield Savings Tools
Higher-income households are also more likely to take advantage of products designed to help savings earn interest. The survey found that among households earning $100,000 to $149,999 and those earning $150,000-plus:
29% and 33%, respectively, currently use CDs
27% and 33% use money market accounts
17% and 30% use high-yield money market accounts
"One of the easiest ways to strengthen your savings strategy is making sure the money you've already saved is working as efficiently as possible," Walters said.
"Products like high-yield savings accounts, money market accounts and CDs can help your balance grow through earned interest while still supporting different financial goals," he continued. "They're not a substitute for saving consistently, but they can help maximize the money you're already setting aside."
Lower-income households may be less likely to use these products for a variety of reasons.
"Some households simply may not have enough extra cash to lock away in longer-term savings products, while others may not be familiar with the different options that are available," Walters said.
He added that awareness remains a challenge for many consumers.
"Our survey found there's still a meaningful awareness gap around some higher-yield financial products," Walters said.
Higher-Income Consumers Use More Financial Tools and Payment Methods
The survey also found that households earning more than $150,000 annually are more likely to use a wide range of payment methods, including payment apps, digital wallets, bank transfers and cryptocurrency transfers. Households earning between $100,000 and $149,999 tend to use roughly five of the eight payment methods tracked by the survey.
While having more payment options doesn't automatically improve financial outcomes, it can provide flexibility when managing money. However, the key is knowing when to use what method.
"Financial resilience isn't about avoiding one payment method altogether," Walters said. "It's about understanding how each one fits into your overall financial plan."
How Savings Strategies Differ Across Income Levels
Income also appears to influence how Americans approach saving. For middle-income households earning $75,000 to $99,999, paying down debt is a leading strategy for improving finances. Higher-income households, meanwhile, are more likely to tackle debt while also directing money toward higher-yield savings products.
"One encouraging takeaway from the survey is that many consumers aren't just focused on saving more; they're also focused on strengthening their overall financial foundation," Walters said. "Paying down debt today can improve cash flow, increase financial flexibility and create a stronger foundation for future wealth-building."
For many Americans, the survey suggests that income remains one of the strongest factors influencing who can save more, access growth-oriented financial products and make lasting financial progress in 2026.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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