The median American has less saved than you might think

The median American household has between $8,000 and $15,000 in savings, depending on which survey you look at and when it was taken. But that number hides a much messier reality: some households have six figures set aside, while others have nothing. The median tells you the middle point, not what "normal" looks like for someone in your situation.

These figures come from surveys like the Survey of Consumer Finances (run by the Federal Reserve) and the Household Pulse Survey (run by the Census Bureau). Both ask people how much money they have in savings accounts, money market accounts, and similar liquid accounts—money they could access quickly if they needed it. They do not count retirement accounts, home equity, or investments.

The number also shifts year to year based on economic conditions, interest rates, and whether people have recently faced unexpected costs. During the pandemic, savings rates spiked as people spent less and received government payments. In other years, medical bills or job loss pull savings down.

Key Takeaways

  • Median household savings is between $8,000 and $15,000, but this varies widely by age, income, and region.
  • The median is not the same as the average—half of households have more, half have less, so your situation may look nothing like the middle.
  • Surveys measure only liquid savings in bank accounts, not retirement funds, home equity, or investments.
  • Savings amounts change year to year based on job stability, unexpected costs, and economic conditions.
  • Comparing yourself to a national number is less useful than tracking your own progress toward your own goals.

How savings breaks down by age

Younger adults typically have less saved than older ones, which makes sense—they have had fewer years to accumulate money. People in their 20s and early 30s often have under $5,000 in savings. People in their 40s and 50s tend to have more, though the range is very wide.

Age matters partly because older workers have had more time to earn and save, and partly because they may have inherited money or sold property. But age also correlates with income and job stability. Someone who has held the same job for 20 years is more likely to have built up savings than someone who changed jobs five times.

The data also shows that people approaching retirement (ages 55 to 64) have median savings of around $40,000 to $60,000 in liquid accounts, though again, this varies enormously. Some people in this age group have saved very little; others have much more.

Income makes a much bigger difference than age

Household income is the strongest predictor of how much someone has saved. Households earning over $100,000 per year typically have $25,000 or more in savings. Households earning under $40,000 per year often have under $5,000.

This gap exists because higher-income households have money left over after paying for housing, food, and other necessities. Lower-income households often spend every dollar they earn just to cover basic costs. A single unexpected expense—a car repair, a medical bill, a job loss—can wipe out savings entirely.

This is why comparing your savings to a national average can be misleading. If your household income is $35,000 per year, you are not behind because you have $3,000 saved instead of $12,000. You are doing the math with different numbers than someone earning $120,000.

What counts as savings in these surveys

Liquid savings means money you can access within a few days: checking accounts, savings accounts, money market accounts, and certificates of deposit. These surveys do not count retirement accounts like 401(k)s or IRAs, because that money usually has penalties if you withdraw it before age 59½.

They also do not count home equity (the difference between what your house is worth and what you owe on the mortgage), investment accounts, or vehicles. So someone who owns a home worth $300,000 with a $200,000 mortgage has $100,000 in equity, but that does not show up in the savings figures.

This distinction matters because it means the surveys are measuring emergency funds and short-term money, not total wealth. A person with $5,000 in a savings account but $150,000 in a 401(k) and a paid-off house has very different financial security than someone with $5,000 in savings and nothing else.

Why the average is higher than the median

You may have heard that the average American has more saved than the median. That is because a small number of people have very large savings accounts, which pulls the average up. If nine people have $10,000 each and one person has $100,000, the average is $19,000—but the median is still $10,000.

The median is usually a better number to know, because it tells you the point where half of people have more and half have less. The average can be misleading when a few very wealthy households skew the number.

Regional differences in savings

Savings amounts vary by state and region, partly because of cost of living and partly because of job markets. States with higher housing costs (like California and New York) often show lower median savings, because people spend more on rent or mortgages. States with lower costs of living sometimes show higher savings, though this is not a hard rule.

Regional differences also reflect local job markets. Areas with stable, well-paying industries tend to have higher savings. Areas hit by job losses or economic downturns show lower savings.

What this means for your own savings goal

The national median is useful context, but it should not be your target. Financial advisors often suggest having three to six months of living expenses in an easily accessible savings account—your actual number depends on your income, your job stability, and what unexpected costs you might face.

If you earn $4,000 per month and your essential expenses are $3,000, three months of expenses would be $9,000. If your job is unstable or you have dependents, six months ($18,000) might make more sense. If you have a very stable job and a strong safety net, three months might be enough.

The point is to build toward a number that makes sense for your life, not to match a national average that may have nothing to do with your situation.

Frequently Asked Questions

Is $10,000 in savings good?

It depends on your income and expenses. For someone earning $30,000 per year, $10,000 is substantial—roughly four months of gross income. For someone earning $150,000 per year, it is less than a month of income. A better question is whether you have three to six months of your actual living expenses saved.

Why do so many Americans have so little saved?

Most people with low savings are not bad with money—they simply do not have enough income left over after paying for housing, food, childcare, and healthcare to build a cushion. Wages have not kept pace with housing costs in many areas, which makes saving harder even for people with decent jobs.

Should I try to save more than the national average?

The national average is not a useful target. Instead, focus on building enough to cover three to six months of your essential expenses. Once you reach that, you can decide whether to save more, pay down debt, or invest for retirement.

Does my retirement account count toward my savings?

These surveys do not count retirement accounts like 401(k)s or IRAs as "savings" because you cannot access that money without penalties until you reach a certain age. Retirement savings and emergency savings serve different purposes and should be tracked separately.

How often do these savings numbers change?

The Federal Reserve publishes detailed savings data every three years. The Census Bureau's Household Pulse Survey updates more frequently. Numbers shift based on economic conditions, job losses, and whether people have recently faced large expenses, so the figures you see today may be different from figures published a year ago.