What the data shows about American savings

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. The Federal Reserve's Survey of Household Economics and Decisionmaking found that roughly 40% of Americans say they could not cover a $400 emergency without borrowing or selling something. That number has stayed roughly stable for years, even as wages have risen.

These figures vary sharply by age, income, and region. A household making $75,000 a year typically has more in savings than one making $30,000. Someone in their 50s usually has more than someone in their 20s. Someone in a high-cost city like San Francisco or New York often has less than someone in a lower-cost area, even at the same income level, because housing and living costs eat more of the paycheck.

The headline number—median savings of $8,000 to $15,000—masks a real split: some households have six months of expenses set aside, while others have almost nothing. The average (meaning the total divided by the number of households) is much higher than the median because a small number of very wealthy households pull the number up significantly.

Key Takeaways

  • About 40% of American households report they could not cover a $400 unexpected expense without borrowing, according to Federal Reserve data.
  • Median household savings sits between $8,000 and $15,000, but this varies widely by age, income, and location.
  • Savings rates have not improved much over the past decade despite wage growth, because housing and healthcare costs have risen faster than income.
  • Your own savings goal should depend on your expenses and income, not on what the average household has.

Why the average is not your target

Knowing that the median American has $10,000 in savings tells you almost nothing about whether you should have $10,000. A single person with $2,000 in monthly expenses needs a different emergency fund than a family of four with $6,000 in monthly expenses. Someone in a job with stable hours and benefits needs less cushion than someone doing contract work.

The more useful number is your own monthly expenses. Financial advisors often suggest keeping three to six months of expenses in an easily accessible account—not because that is what Americans have, but because that is what covers most common emergencies: a job loss, a car repair, a medical bill. If your monthly expenses are $3,000, that target is $9,000 to $18,000. If they are $5,000, it is $15,000 to $30,000.

The average American household also carries debt—credit cards, car loans, student loans, mortgages. Comparing your savings to the national median while ignoring your own debt is like comparing your weight to someone else's without knowing your heights. The comparison does not tell you whether you are in the right place.

How savings rates have changed over time

The personal savings rate in the United States—the percentage of after-tax income that households save rather than spend—has fluctuated between roughly 3% and 13% over the past 20 years. It spiked during the 2008 financial crisis and again during the early months of the COVID-19 pandemic, when people cut spending and received government payments. It has since fallen back toward historical lows.

This does not mean Americans are saving less in absolute dollars; it means they are spending a larger share of their income. Wages have grown, but so have housing costs, healthcare costs, and childcare costs. Someone earning $50,000 in 2005 and $55,000 in 2024 may feel like they have more money, but if rent has risen from $1,000 to $1,500 and health insurance from $200 to $400, they actually have less left over to save.

Younger households (under 35) typically have less in savings than older ones, partly because they earn less early in their careers and partly because they are more likely to be paying off student loans. Households headed by someone over 65 have the highest median savings, though this includes people who have been working and saving for 40+ years as well as people who have drawn down savings to pay for healthcare.

Savings by income level

The relationship between income and savings is not linear. Someone making $30,000 a year might save $1,000 if they are disciplined; someone making $100,000 might save $15,000 or $30,000 depending on their spending habits and debt. But on average, higher income correlates with higher savings because there is more money left after covering basic needs.

Households in the top 25% of income typically have $50,000 or more in savings. Households in the bottom 25% often have less than $1,000. The middle 50% fall somewhere in between, with wide variation. This gap has widened over the past 20 years as wage growth has been faster for higher earners than for lower earners.

Income alone does not determine savings, though. Someone earning $60,000 with no debt and low housing costs may have more saved than someone earning $80,000 with a mortgage, car payment, and student loans. Spending habits, debt payoff strategy, and life circumstances matter as much as the number on the paycheck.

What counts as savings

When surveys ask Americans about their savings, they typically mean money in a bank account, money market account, or savings account—liquid money you can access quickly. They usually do not count retirement accounts like 401(k)s or IRAs, because those accounts have withdrawal restrictions and tax penalties if you touch them before age 59½.

This distinction matters. Many Americans have significant money in retirement accounts but very little in accessible savings. Someone with $150,000 in a 401(k) and $2,000 in a savings account is not in the same position as someone with $152,000 in savings, even though their total is the same. The first person cannot easily access that money for an emergency without paying taxes and penalties.

Some surveys also exclude home equity—the difference between what your house is worth and what you owe on the mortgage. A homeowner with $200,000 in equity but $5,000 in liquid savings is technically house-rich and cash-poor. They have assets but not accessible money.

How to figure out your own savings target

Start by calculating your monthly expenses: rent or mortgage, utilities, food, transportation, insurance, childcare, debt payments, and anything else you spend money on regularly. Add up three months of that number. That is your minimum emergency fund—enough to cover a job loss or major unexpected cost without going into debt.

If your job is unstable, you work as a contractor, or you have dependents, aim for six months instead. If you have high-interest debt, you might prioritize paying that down before building a large savings account, because the interest you pay on debt often exceeds the interest you earn on savings.

Once you have your target, the next step is deciding where to keep the money. A high-yield savings account currently pays 4% to 5% annual interest, which is better than a regular savings account at 0.01%. Money market accounts and certificates of deposit (CDs) offer higher rates if you are willing to lock the money away for a set period. The goal is to keep emergency money somewhere you can access it quickly but where it earns something rather than sitting in a checking account.

Why comparing yourself to the average can backfire

If you have $5,000 in savings and you read that the average American has $10,000, it is easy to feel behind. But if your monthly expenses are $2,000, you already have 2.5 months of expenses covered—more than many Americans. If your monthly expenses are $4,000, you have less cushion, but you also know exactly what you need to work toward.

The average also includes people in very different situations: someone who just inherited money, someone who just lost their job, someone who has been saving for 30 years, and someone who started saving last month. Comparing your situation to that average is like comparing your marathon time to the average of everyone who ran one—it does not account for whether you trained for six months or six weeks.

A more useful comparison is your own progress over time. If you had $2,000 in savings six months ago and $5,000 now, you are moving in the right direction. That matters more than whether you match some national statistic.

Frequently Asked Questions

Is $10,000 in savings considered good?

It depends on your monthly expenses and income. If your monthly expenses are $2,000, $10,000 covers five months—well above the three- to six-month target most people aim for. If your monthly expenses are $5,000, $10,000 covers only two months, which is below that target. The number that matters is how many months of expenses you have saved, not the dollar amount itself.

Why do so many Americans have so little savings?

Housing, healthcare, and childcare costs have risen faster than wages over the past 20 years. Someone earning $50,000 today has less money left over after covering these costs than someone earning $50,000 in 2005, even though the nominal wage is the same. Additionally, unexpected expenses—medical bills, car repairs, job loss—can wipe out savings quickly, and many people prioritize paying down debt over building savings.

Should I save money or pay off debt first?

If you have high-interest debt like credit cards (typically 15% to 25% interest), paying that down usually makes more sense than saving, because the interest you pay exceeds what you earn on savings. If you have low-interest debt like a mortgage or student loan, building an emergency fund first protects you from taking on more debt if something unexpected happens. Many people do both at once: a small emergency fund plus aggressive debt payoff.

Does the average American savings number include retirement accounts?

Most surveys of household savings exclude retirement accounts like 401(k)s and IRAs because those accounts have restrictions on when you can withdraw the money. They focus on liquid savings—money in bank accounts that you can access quickly. This means the reported average is lower than total household assets, but it is a more accurate picture of money available for emergencies.

How much should I have saved by age 30?

There is no single right answer, but a common guideline is to have one year of income saved by age 30 (including retirement accounts and liquid savings combined). Someone earning $50,000 would aim for $50,000 total. This is a target, not a requirement—many people are behind this benchmark, and many are ahead. Your own situation matters more than the age-based guideline.