Nearly half of American households say they would spend none of an unexpected payment equal to one month's income, instead choosing to save the money or pay down debt, according to newly released Federal Reserve research examining how families manage their finances.
Households said they would spend an average of just 22% of the additional money over the following year, save or invest 47% and devote approximately 30% to debt repayment. About 47% said they would spend nothing, while only 4% would use the entire amount for purchases.
The findings come from a study published October 9 by the Federal Reserve, using responses from its 2025 Survey of Consumer Finances. Researchers asked families how they would allocate a hypothetical payment equal to one month of their normal income.
