How much money is in the average person's bank account?
The median transaction account balance is $8,000, according to the Federal Reserve's Survey of Consumer Finances (SCF), with the most recently published data from 2022. Transaction accounts include savings, checking, money market and call accounts, as well as prepaid debit cards.
The median account balance in 2019 was around $5,300, while the average account balance is around $41,600. This is the latest available data, as the Federal Reserve releases this survey every three years. The Fed plans to publish its 2022 survey data later this year.
Average Savings by Age 30
According to the latest Survey of Consumer Finances, the average savings in transaction accounts for this group was $11,250, and the median was $3,240, in 2019. If you have more than this in your savings account at 30, you have more than many of your peers.
Key Takeaways. The median savings account balance for all families in the U.S. was $8,000 in 2022. Generally, higher-income earners and older individuals save more than younger ones. Some experts suggest three to six months' living expenses as a goal.
| Age range of reference person | Average checking account balance in 2022 | Median checking account balance in 2022 |
|---|---|---|
| Under 35 | $7,355.53 | $1,600.00 |
| 35 to 44 | $15,309.92 | $2,500.00 |
| 45 to 54 | $20,155.22 | $3,400.00 |
| 55 to 64 | $17,515.35 | $3,500.00 |
More Than Half of Americans Have Less Than $10,000 Saved
Going up a little more, just 6% have between $100,001 and $200,000 saved. Few Americans have saved more than $300,000: 4% have between $350,001 and $500,000. 4% have saved between $500,001 and $750,000 and another 4%, have more than $750,000 saved.
27% of Americans have less than $500 in their checking account, a recent CNBC Select and Dynata Banking Behaviors Survey found. Another 11% have a balance between $500 and $999 and 23% said they have between $1,000 and $4,999.
Most American households have at least $1,000 in checking or savings accounts. But only about 12% have more than $100,000 in checking and savings.
When your savings reaches $100,000, that's a milestone worth marking. In a world where 57% of Americans can't cover an unexpected $1,000 expense, having a six-figure savings account is commendable.
Overall, the rule of thumb is to judge by your salary. Typically, by the time you enter retirement you want to have 10 times your annual salary saved up in your retirement fund. One common benchmark is to have two times your annual salary in net worth by age 35.
How many Americans have $500 in savings?
About 29% of respondents have between $501 and $5,000 in their savings accounts, while the remaining 21% of Americans have $5,001 or more. Few hold much cash in their checking accounts as well. Of those surveyed, 60% report having $500 or less in their checking accounts, while only about 12% have $2,001 or more.
American households, on average, have $41,600 in savings, according to data last collected by the Federal Reserve in 2019. The median balance for American households is $5,300, according to the same data. The reality is that the above stats may not accurately reflect the financial situation of many Americans.
One commonly cited data point comes from the Federal Reserve Survey of Consumer Finances, which finds that Americans hold an average balance of $42,000 in transaction accounts. This average is skewed by people holding high balances, so it might be better to look at the survey's median balance figure, which is $5,300.
The average American net worth is $1,063,700, as of 2022. Net worth averages increase with age from $183,500 for those 35 and under to $1,794,600 for those 65 to 74. Net worth, however, tends to drop for those 75 and older.
A better question might be how much does a typical 21 year old have and the answer is less than $1000. There are going to be some who have saved a lot of money in high school and have worked through college and may have $20–30K in the bank, but this is not typical.
Either way, you haven't hit your peak earning years, so you're not earning a lot. However, a good rule of thumb for a 21-year-old is to have $6,000 in a savings account for emergencies and long-term financial goals.
The short answer is yes, $500,000 is enough for many retirees. The question is how that will work out for you. With an income source like Social Security, modes spending, and a bit of good luck, this is feasible. And when two people in your household get Social Security or pension income, it's even easier.
Retiring with $200k is possible, if not ideal. If you're closer to retirement age and hoping to leave the working world sooner rather than later, budget carefully and set realistic expectations. Only you can decide what's within your power and right for your situation.
| Savings account balance | Percentage of respondents |
|---|---|
| $500 to $1,000 | 8% |
| $1,001 to $5,000 | 22% |
| $5,001 to $10,000 | 8% |
| $10,000 to $20,000 | 7% |
How Many Americans Are Living Paycheck to Paycheck? A 2023 survey conducted by Payroll.org highlighted that 78% of Americans live paycheck to paycheck, a 6% increase from the previous year. In other words, more than three-quarters of Americans struggle to save or invest after paying for their monthly expenses.
How many Americans have no savings?
In 2022, 23 percent of Americans had no emergency savings. Because building savings takes time, McBride recommends people automate contributing to their savings accounts as much as possible.
Almost one in ten men have $100,000 or more in savings, but the figure falls by four percentage points for women (9% men vs. 5% women).
“By the time you're 40, you should have three times your annual salary saved. Based on the median income for Americans in this age bracket, $100K between 25-30 years old is pretty good; but you would need to increase your savings to reach your age 40 benchmark.”
Someone who has $1 million in liquid assets, for instance, is usually considered to be a high net worth (HNW) individual. You might need $5 million to $10 million to qualify as having a very high net worth while it may take $30 million or more to be considered ultra-high net worth.
While the Federal Reserve doesn't provide specific data for individuals in their twenties, those under 35 have a median of $3,240 and an average of $11,250 saved in transaction accounts.
