Average Savings Account Balance Statistics: By Age, Income, Ethnicity

Saving money is the best way to reduce dependence on credit cards when emergencies occur. Savings also helps people to achieve big goals and dreams, from buying a home to traveling. Yet, for many Americans, savings is difficult, especially when they are living paycheck-to-paycheck.

If you are looking for where you stand, consider the following statistics and a few strategies that can help you to improve and meet your savings objectives over time.

How Much Does the Average Household Have in Savings?

Data from 2023 shows that the average American has $65,100 in savings and checking accounts. This does not include any retirement savings accounts. This is about a 5% increase from 2022, when the average American had $62,000 in reported savings and checking accounts, according to the Federal Reserve’s 2022 Survey of Consumer Finances from the Federal Reserve. 

However, of that, only about $8,000 was in savings accounts, according to the Survey of Consumer Finances. 

How much should a person keep in savings?

While there is no specific value that is always ideal, there are a few rules to remember about savings accounts and balances for financial health:

• Aim for at least 15% of your pre-tax income to be put into savings. That means that if you are paid $1,000 every week, you should be putting $150 a week, or $600 a month, into some type of savings account.
• Having an emergency fund is essential to minimizing the risk of any type of credit card use. A six-month emergency fund equal to your expenses for six months should be a goal for many people.
• Consider all strategies for savings accounts, including the use of Certificates of Deposit (CODs) as well as high-yield savings accounts, but be mindful of any fees associated with these accounts.

Average Savings By Age

Another factor to consider when it comes to savings is age. The older you are, the more important it is to have savings tucked away to help pay for retirement. However, the younger you are when you start saving, the more time there is for your savings account balance to increase over time, thanks to compound interest. Saving at every age is ideal and even necessary.

Here are some statistics on average savings by age according to the Federal Reserve data from 2022.

Adults up to 25

Data indicates that for those who are up to age 25, the average savings is $20,540. The median account balance, though, is $5,400.

Adults from 26 to 30

For those who are about age 30, the savings is $11,200, with a median account balance of $3,240. 

Adult savings at 40 

At 40, the average savings in the U.S. is $41,540, with a median account balance of $7,500. This accounts for people up to age 44.

Adults at 50

For those between 45 and 54, the average savings is $48,200, and the median account balance is $5,620, according to the Federal Reserve.

Adults at 55

At the age of 55 to 64, the average savings is $57,800, and the median account balance is $6,400. 

At that point, the Federal Reserve does not continue to focus on savings because a person is likely to be retired.  

Savings in Retirement

When it comes to retirement, the mean bank account balance for those 654 to 74 is $100,250, with the median bank account balance at $13,400. For those over the age of 74, the mean bank account balance stands at $82,800, with the median bank account balance at $10,000.

Tips for Saving at Every Age

• Increasing your savings each year is ideal, though not always possible. The key to doing so is to put aside money from each paycheck equal to 15% or more of your total pre-tax dollars.
• As you get a raise, increase how much you are saving from each paycheck to meet that raise. For example, if you receive a 5% raise, make sure your savings increase by at least 5% as well.
• Make savings automatic. By doing this, you are less likely to forget to put money into savings. Have your bank withdraw the amount you wish to save out of every paycheck and deposit it into your savings account every time you receive a paycheck. That will help increase how often you save, improving your consistency in doing so.

Average Savings by Education Level

There is a belief that education plays a role in how much people save. While that can be the case in some situations, especially when it relates to earning power, it is critical to also consider the limitations that can come from higher education, including the amount of student loan debt a person has.

Take a look at the following average savings by education level as reported by the Federal Reserve’s Survey of Consumer Finance.

• No high school diploma: Median bank balance of $900 and mean bank account balance of $9,130.
• Completed high school with diploma: Median bank account balance of $3,030 and mean bank account balance of $23,380.
• Some college, no degree: Median bank account balance of $5,200 and mean bank account balance of $33,410.
• College degree: $23,370 for median bank account balance and $116,010 for mean bank account balance. 

Those with a graduate degree may earn more, but the Federal Reserve did not supply that information for the 2022 report. 

Tips on increasing savings at higher education levels:

• Education is a core component to earning more, but it is not always necessary to have a bachelor’s degree. Completing trade school can be one way to increase income without a local, costly commitment to college.
• Working during college can also help to reduce debt when leaving school, making it easier to pay back any student loans sooner and giving you more ability to save at a higher rate over time.
• To increase your earnings beyond college, consider additional degrees, added certificates, or other methods to improving your education to remain competitive in the job market especially in areas of IT and manufacturing.

Average Savings by Income

Another factor that may contribute to the average savings a person has is the income they earn. While education sometimes impacts how much a person earns, that is not the only factor that plays a role in this. In many situations, the average savings a person has is dependent on income and spending methods.

The Federal Reserve study provides insight into how much savings people have at various ages. The following information is from the most recent data available.

• Earnings up to $34,599: Median bank account balance of $900, mean bank account balance of $7,860.
• Earnings from $35,000 up to $59,499: Median bank account balance of $2,550 and mean bank account balance of $16,410.
• Earnings from $59,500 up to $91,900: Median bank account balance of $15,760 and mean bank account balance of $44,070. 
• Earnings from $153,100 up to $245,400: Median bank account balance of $33,800 and mean bank account balance of $76,940.
• Earnings over $246,000: Median bank account balance of $111,600 and mean bank account balance of $353,000.

Earning more does not always translate into significantly larger savings. However, it is important to note that these details do not include retirement savings, which may increase for those who are earning at a higher rate.

Tips for increasing your savings as your earnings increase:

• Set a budget that is based on your needs rather than your earnings. As your earnings go up, that does not mean your costs will increase unless you borrow more, purchase more, or purchase higher-valued items, like cars. 
• Whenever possible, increase the percentage of your income you are putting towards savings. While at lower levels of earning, investing 15% may be ideal, as your income increases, move that percentage to 20% or 25% so that you are saving more with each increase.
• When you get a job, make sure that you are investing in yourself first. That means putting money into savings accounts or other investment strategies before you purchase anything else.

Being financially savvy means seeing your income grow without pairing that with higher debts. Living within your means may help you to grow your savings account faster.

Average savings by race and ethnicity

Another factor to consider when it comes to how much money people save, as reported by the Federal Reserve, is based on ethnicity and race. The Federal Reserve does not offer a significant breakdown of earnings, but the following shows an impact that race and ethnicity can have on savings.

• White/Caucasian: Median bank account balance of $12,000 while mean bank account balance stands at $80,040. 
• Black/African American: Median bank account balance of $2,110 and mean bank account balance of $13,370. 
• Hispanic American: Median bank account balance of $2,100 and mean bank account balance of $15,710.
• Other (Anyone indicating other races): Median bank account balance of $6,000 and mean bank account balance of $45,810. 

How Much Money Should Go to Savings?

While there are various factors that play a role in how much money a person should save, most investors believe that between 15 and 20% of a person’s income should go into savings every paycheck. 

FAQs on Average Savings in the US

How should you think about savings in your 20s?

When you are in your 20s, saving money now is the easiest due to the least amount of debt for most adults, but it is challenging due to lower income levels. Saving now into tax-advantaged retirement accounts provides the best way to keep costs low. Also, consider investing in life insurance at this age.

How should you save when you are in your 40s?

In your 40s, you should be increasing your streams of income to diversify your savings options. Saving in various strategies can help amplify how much money you are earning as you approach retirement in the next few decades.

How should you save money when you are in your 50s and early 60s?

At this stage of life, saving as much as possible now gives you the ability to retire. However, there is also less opportunity to make back anything lost. For that reason, you may wish to switch savings strategies to focus more heavily on safer and less volatile methods of saving.

Where should you keep your savings?

Savings accounts provide the lowest rate of return in most situations. By contrast, CDs, money market accounts, and investment portfolios can help you earn more money for your savings over time. However, you may also need to have an emergency savings account that is easy to get to if you need it. Having these funds in a traditional savings account can help you to have access when necessary. Finally, make sure to open and invest in a retirement account as soon as possible to benefit from the tax savings.