The economy is still in bad shape and people are saving their money more than ever.

Splurging is no longer a luxury for most. And consumer confidence has gone to the bottom.

A report from Bloomberg.com shows people are saving more than ever, leaving the savings rate at less than seven percent, the highest since the end of 1993.

Hazard Community and Technical College economics professor Richard Crowe says the recession has taken its toll on personal accounts.

Crowe says “When people's home mortgages dropped in value, their houses weren't worth as much they thought it was. Their retirement account wasn't worth as much as they thought it was. Then right away it sent signals to their brain that they better save.”

Crowe also says a lot of people have seen what has happened to others who have retired and don't want that happening to them.

He says “I think people immediately are going to try to save more. Whether that lasts five years or ten years, that's a moot question.”

A question that almost everyone is trying to find the answer to in today's tough economy.

Crowe says he expects people to continue to save their money until the economy balances out.