Child Tax Credit Payments Are Keeping Savings Balances Stable

The economic outlook in December 2021 is drastically different from what it was in July when Child Tax Credit (CTC) payments started. Everyday essentials are getting more expensive, and SaverLife members are adjusting—in November SaverLife members are 21% more likely to state that spending on everyday essentials is their primary use of CTC payments, compared to July. 

Despite these rising costs, CTC payments are helping families keep a critical savings cushion. 

In the chart below, bank account data shows that despite rising costs, people didn’t have to dip into their savings accounts as much: since July, an average of 25% of CTC recipients reduced their savings balances by $100+ in a given month, slightly less than the 27% average found during the same time period in 2020.