Are you curious about how much the average American has in savings? Are you worried you’re not saving enough, or wondering if you’re ahead of the game? Here take a look at the numbers and see where you stand.
How much does the average American have in savings?
First, you must know how much does the average American have in savings? According to recent studies, the average American has $8,863 in savings. However, this number varies significantly depending on age, income, and other factors. It’s important to note that this number includes all types of savings accounts, including emergency funds, retirement accounts, and other investments.
Age and savings
Age is a main factor in savings, as younger Americans tend to have fewer savings than their older counterparts. According to a survey by Bankrate, those under 35 have an average savings account balance of $4,151. This is likely due to several factors, such as lower starting salaries, higher levels of debt, and a lack of experience with financial planning.
As Americans enter their 40s and 50s, they tend to have more money saved, as they have had more time to accumulate wealth. Finally, those aged 65 and over have the most money saved, with an average savings account balance of $25,090. This can be attributed to years of retirement savings, access to Social Security benefits, and a reduction in expenses due to an empty nest.
As Lantern by SoFi experts says, “The median American savings account balance is just $5,300.”
Income and savings
Income is another major factor that affects savings. Those with higher incomes tend to save more, while those with lower incomes struggle to save. In a survey by Bankrate, only 23% of households earning less than $30,000 per year have emergency savings, compared to 57% of households earning more than $75,000 per year.
Geographic location and savings
Where you live can also impact how much you have saved. The cost of living varies significantly depending on where you are, which can affect how much money you have left to save. For example, Mississippi’s average savings account balance is $5,758, while Massachusetts’s is $12,530.
Education and savings
Education is also a factor that affects savings. Those with higher levels of education tend to have more savings, while those with less education have fewer savings. For example, those with a college degree have an average savings account balance of $12,877, while those with only a high school diploma have an average balance of $4,053.
Gender and savings
Gender also plays a role in how much people have saved. According to a study by CNBC, women have an average savings account balance of $34,433, while men have an average balance of $56,096. This discrepancy can be attributed to the gender wage gap and other factors, such as women taking more time off work to care for family members.
The average American has $8,863 in savings, but this number varies significantly depending on age, income, geographic location, education, and gender. While it’s important to strive for financial stability, it’s also important to remember that everyone’s financial situation is unique. You can work towards a brighter financial future by focusing on your personal financial goals and making smart financial decisions.