Precautionary savings behavior during the COVID-19 pandemic: The role of health risk and financial challenges in the United States

The COVID-19 pandemic created unprecedented economic uncertainty, yet the relationship between health risk perceptions and precautionary household savings behavior remains poorly understood. This study examines how perceived health risks and financial hardship influenced precautionary savings behavior in the United States during the pandemic. Using data from the 2022 U.S. Survey of Consumer Finances (SCF), we applied the Health Belief Model framework to analyze 4,595 households through hierarchical logistic regression, controlling for demographic and economic factors. Financial hardship (OR = 1.45, p < .05) and government assistance (OR = 1.41, p < .001) significantly predicted precautionary savings behavior, while a direct COVID-19 diagnosis did not. Notably, Black households were 65.6% more likely to save for precautionary reasons than White households. In conclusion, economic vulnerability was a more potent driver of precautionary saving than direct health risk perception. The findings provide a framework for designing culturally responsive policies and financial products to strengthen household resilience.