Personal Finance Banking Savings
Written by Liz Knueven and Kit Pulliam; edited by Sophia Acevedo, CEPF
Updated
- How average savings balances vary
- Why do savings account balances matter?
- How to increase your savings balance
- Overview of average American savings balances
- FAQs
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- Data from the Federal Reserve shows the average American family has $62,410 in transaction accounts.
- Factors like age or education level may impact the amount the typical American actually has saved.
- The average American savings balance may also depend on household size and homeownership status.
According to data from the Federal Reserve's 2022 Survey of Consumer Finances, the average American family has $62,410 in savings, across savings accounts, checking accounts, money market accounts, call deposit accounts, and prepaid cards.
Note that this number is an average, not a median, which means it can be skewed by households with especially high or low balances. This number does not include investment balances, like money held in a retirement account or other brokerage account, or any equity held in real property, like a house.
When you look a little closer at the data, there are several factors that influence how much an American household actually has saved.
How average savings balances vary
Average savings account balance by age
Older Americans tend to have more cash in the bank than younger Americans. The average person between the ages of 45 to 54 has $50,590 more than the average person under age 35. However, average savings account balances start to decline after age 70.
Here's how the average savings balances break down by age group, according to Federal Reserve data
| Age group | Average balance |
| Under 35 | $20,540 |
| 35 to 44 | $41,540 |
| 45 to 54 | $71,130 |
| 55 to 64 | $72,520 |
| 65 to 74 | $100,250 |
| 75 or older | $82,800 |
Average savings account balance by household size
Kids and marriages tend to dramatically change a family's household savings balance.
On average, single-parent households under the age of 55 tend to have the lowest average savings balances, while couples without children tend to have the highest average savings balances.
| Type of household | Average savings balance |
| Single, no children (under the age of 55) | $19,320 |
| Single, no children (over the age of 55) | $37,220 |
| Single with one or more child | $16,800 |
| Couple, no children | $103,140 |
| Couple with one or more child | $73,890 |
Average savings account balance by race
A large racial wealth gap still exists in America, from income to household wealth.
According to data from the Federal Reserve, that gap flows into savings balances as well.
| Race of respondent | Average savings balance |
| White | $80,040 |
| Black | $13,370 |
| Hispanic | $15,710 |
| Other | $45,810 |
Average savings account balance by education level
As a family's education level increases, so does the average savings balance. People who earned a high school diploma have an average savings balance double that of those who haven't. Similarly, people with a college degree have an average savings balance about five times greater than that of someone who only completed high school.
Here's how education affects savings balance, according to the 2022 Survey of Consumer Finances:
| Highest education level completed | Average savings balance |
| No high school diploma | $9,130 |
| High school diploma | $23,380 |
| Some college | $33,410 |
| College degree | $116,010 |
Average savings account balance by homeownership
People who own homes tend to save more, on average, than people who own homes have more cash in the bank than those who rent, according to Federal Reserve data.
| Housing type | Average savings balance |
| Owns | $85,430 |
| Rents | $16,930 |
Why do savings account balances matter?
Financial security
One of the most important reasons to have savings is for financial security. Financial experts recommend establishing an emergency fund, which should hold around three to six months of your expenses. Emergency funds are vital if you lose your job, have a medical emergency, or have another type of sudden emergency.
High-yield savings accounts are great for holding emergency funds because they let you withdraw the money when you need it while not letting you withdraw money as easily as a checking account does. It also lets you earn money on your emergency funds; the best high-yield savings accounts give you over 5% annual percentage yield on your balance.
Achieving goals
Many people also use savings accounts to save up for savings goals, such as saving up for a down payment on a house or car. Savings accounts can be a good no-risk way of increasing the money you have set aside for your savings goals.
Peace of mind
Knowing you have enough money in your high-yield savings account to pay bills, cover emergencies, and work toward future goals helps ease financial stress. Having less financial stress helps you make more measured financial decisions, leading to better financial security.
How to increase your savings balance
Budgeting basics
Learning how to budget is key to increasing your savings balance. Making sure you're saving at least a little money from every paycheck helps you build an emergency fund and work toward savings goals.
There are several different approaches to budgeting, such as the 50/30/20 rule, the 70/20/10 rule, and envelope stuffing. Check them all out to see which one's right for you.
Set savings goals
Setting savings goals can help you save by providing concrete goals to work towards. It's easier to save when you know how much you want to save and when you need i. Using budgeting apps can also help by giving you ways to track how much you've saved and spent.
Automate savings
One tip to increase savings account balance is to automate transactions. When all your money goes into your checking account, it can be hard to remember to move your money into your savings account, and easy to accidentally spend it. Automating your savings by setting up a monthly direct deposit of a portion of your paycheck into your savings account makes sure you don't forget to save.
Overview of average American savings balances
The average American savings balance can vary greatly depending on your circ*mstances. Numerous factors, such as age, household size, race, education level, and homeownership status can impact how much you've saved.
Also, keep in mind that the data we've included from the Federal Reserve's 2022 Survey of Consumer Finances doesn't not factor in retirement accounts, and represents an average savings balance of high-income and low-income American families.
Average savings balance FAQs
What is a good savings account balance?
It depends on your individual situation. Aim for at least three to six months of living expenses as part of an emergency fund.
How can I save more if I'm on a tight budget?
Learning how to save money on a low income can be hard, but even small amounts add up. Focus on reducing discretionary spending where you can.
Do high-yield savings accounts make a difference?
Yes, a high-yield savings account offers a higher interest rate than a traditional savings account. That means your money will grow faster over time.
Where can I find reliable data on average savings balances?
Banks, financial websites, and government resources with a .gov domain often publish information on average savings balances. We used data from the Federal Reserve's 2022 Survey of Consumer Finances to provide information about average savings balances on various demographics.
Should I worry if my savings are below average?
It's OK if your savings are below average as long as you have enough saved for a strong emergency fund, since there are differences in the average savings account balance by income, age, and education levels, among others. That being said, make sure you continue to save going forward, no matter how your savings compare to the national average.
Personal Finance Reporter
Liz was a personal finance reporter at Insider. Before joining Insider, she wrote about financial and automotive topics as a freelancer for brands like LendingTree and Credit Karma. She earned her bachelor's degree in writing from The Savannah College of Art and Design. She lives and works in Cincinnati, Ohio. Find her on Twitter at @lizknueven.
Personal Finance Insider editorial fellow
Kit Pulliam (they/them) is a Personal Finance Insider editorial fellow at Business Insider, specializing in banking. Kit joined Business Insider in January 2024. They cover bank reviews, savings rates, and more.Kit is an alumnus of Vanderbilt University, where they studied English and psychology. Kit previously worked as an editorial specialist at Tax Analysts. They are based in the DC area. You can email them at kpulliam@businessinsider.com.
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