'Revenge saving' picks up as consumers brace for economic uncertainty

Nearly three-quarters, 71%, of Americans say they plan to shift their savings apach this summer to prioritize emergency savings and flexibility, according to a new Vanguard survey

Consumers are taking to social media to express how they are “revenge saving" — paring back spending to rebuild their savings

Personal saving rate has increased from 3. 5% in December to 4. 5% in May, according to the Bureau of Economic Analysis

Personal saving rate — the percentage of disposable income that U

Households , after they pay taxes and spend money — has risen sharply this year, reaching 4. 5% in May, according to Bureau of Economic Analysis data released Friday

Some consumers may be changing their financial habits from so-called "revenge spending" — the trend of splurging after the pandemic — to "revenge saving," as they focus more on building savings and spending less. "No buy" challenges are going viral on social media platforms TikTok and Reddit, as consumers vow to limit their discretionary spending, cut back on subscriptions and travel, and rebuild their savings

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The benefits of cash reservesFinancial advisors typically recommend consumers aim to set aside three to six months' worth of living expenses as a cash cushion

But you might benefit from having more in some circumstances; for example, if you're a one-income household or your pay is variable, experts say

Having ample cash reserves imves overall financial wellbeing, according to Vanguard reers. "American workers are spending, on average, nearly seven hours each and every week thinking their finances," said Dina Caggiula, head of participant experience at Vanguard. "But if you have sufficient emergency savings, we can cut that number nearly in half. "Grace Cary | Moment | Getty ImagesSeveral factors are mpting consumers to be cautious and cut back, including fluid tariff negotiations, the spect of higher inflation and interest rates lingering at higher levels longer than some expected, financial advisors and reers say

Many Americans are also concerned geo and social unrest

Some of the "revenge savings" trend is consumers wanting to amass cash to help shield themselves from unexpected cost increases in the future. "This may be a lot of just defensive behavior or anticipatory behavior

I may not need the money today, but I'm going to get access to that money in case I need it a few months down the road," said Charlie Wise, senior vice president and head of global re and consulting at TransUnion

More retirement plans are making it easier for workers to enroll and contribute through automatic enrollment and automatic escalation features. "If you get money automatically out of people's paychecks, kind of the same way taxes come out of people's paychecks, if we can do that, most people end up saving a very high percentage of their income," said Jeff Schneble, CEO of Human Interest, a San Francisco-based firm that helps small companies set up 401(k) services

Correction: Human Interest is based in San Francisco

An earlier version misstated where the firm is located. — CNBC Senior ducer Stephanie Dhue contributed reporting to this story

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