According to data from the Federal Reserve’s 2022 Survey of Consumer Finances, the average American family holds $62,410 in transaction accounts, including savings accounts, checking accounts, money market accounts, call deposit accounts, and prepaid cards.
But, according to the same report,ย the median transaction account balance is $8,000 based on the most recently published data.
However, this figure represents an average rather than a median, meaning it may be influenced by households with extremely high or low balances.
Additionally, this amount excludes investment assets, such as retirement or brokerage accounts, as well as home equity.
Factors such as age, education level, household size, and homeownership status may impact individual savings balances, leading to variations in financial security across different demographics.
Key Takeaways
Average Savings Account Balance by Age
Savings account balances tend to increase with age, as older Americans generally have more accumulated wealth than younger individuals.
According to Federal Reserve data, individuals between 45 and 54 years old have, on average, $50,590 more in savings compared to those under 35.
However, balances tend to decline after age 70, as retirees begin to draw from their savings.
These trends highlight how savings grow over a lifetime, typically peaking between 65 and 74 before decreasing in later years as people spend during retirement.
According to the Bureau of Labor Statisticsโ 2022 Consumer Expenditure Survey, individuals aged 45 to 54 have the highest annual expenses on average.
When it comes to financial preparedness, only 31% of Gen Z report having enough savings to cover a $1,000 unexpected expense, compared to 43% of Millennials, 36% of Gen Xers, and 59% of Baby Boomers.
Savings Account Balance by Race
A significant racial wealth gap exists in America, extending beyond income and household wealth to include savings balances.
Data from the Business Insider shows that White households have the highest average savings, while Black and Hispanic households have significantly lower balances.
On average, White individuals have $80,040 in savings, compared to $13,370 for Black individuals and $15,710 for Hispanic individuals. Other racial groups have an average savings balance of $45,810, which falls between these figures.
These figures underscore the ongoing racial wealth disparity, likely influenced by historical inequalities, income levels, employment opportunities, and access to financial resources. Lower savings balances can limit economic mobility, making it more difficult for some racial groups to build wealth over time.
Savings Account Balance by Homeownership
Homeownership is a key indicator of financial stability, with homeowners generally having higher savings balances than renters.
According to Federal Reserve data, individuals who own their homes have an average savings balance of $85,430, significantly more than renters, who have an average of $16,930.
This disparity highlights the financial security and wealth-building advantages of homeownership, as homeowners often have higher incomes, greater financial resources, and more opportunities for long-term savings.
These figures reflect the broader wealth gap between homeowners and renters, reinforcing the importance of property ownership as a pathway to financial growth and economic security.
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Average Savings Account Balance by Household Size
Household structure has a significant impact on savings balances, with couples without children tending to have the highest average savings, while single-parent households typically have the lowest balances.
Federal data shows that on average, single individuals under 55 have $19,320 in savings, while single parents with children have an even lower balance of $16,800.
In contrast, couples without children hold the most savings, averaging $103,140, likely due to higher dual-income potential and fewer financial dependents.
These figures highlight how life stages, financial responsibilities, and income structures impact household savings, but also one significant fact is that 30% of middle clas struggle with emergency savings
Couples without children tend to have the most financial flexibility, while single-parent households face greater financial constraints that limit their ability to save.
Account Balance by Education Level
Education plays a significant role in financial stability, with higher education levels strongly correlating with higher savings balances.
According to the 2022 Survey of Consumer Finances, individuals with a college degree have an average savings balance of $116,010, which is nearly five times that of someone with only a high school diploma ($23,380).
Similarly, individuals with some college experience have an average balance of $33,410, while those without a high school diploma hold the lowest savings, averaging $9,130.
These figures emphasize the financial benefits of higher education, as individuals with college degrees tend to earn higher incomes, leading to greater savings potential and long-term financial security.
Key Savings Statistics
- High-yield savings accounts offer better interest rates than traditional savings accounts, helping funds grow more efficiently.
- Only 25% of Americans consider themselves completely financially secure, down from 28% in 2023, according to Financial Freedom Survey.
- Nearly 59% of U.S. adults feel uncomfortable with their level of emergency savings,
- 27% of Americans have no emergency savings at all, leaving them financially vulnerable in case of unexpected expenses.
- 36% of adults had more credit card debt than emergency savings in both 2023 and 2024, highlighting financial strain.
- 57% of working Americans (full-time, part-time, or temporarily unemployed) fell behind on their retirement savings, according to the latest Retirement Savings Survey.
Methodology
We sourced data from the Federal Reserve, Bureau of Labor Statistics, and financial surveys to ensure accuracy and reliability.
We analyzed savings account balances across different demographics, including age, race, education, and homeownership status.
The report compares average vs. median figures to account for outliers and wealth disparities.
We examined trends in financial security, emergency savings, and long-term wealth accumulation.
Key insights were drawn from consumer expenditure surveys, economic reports, and financial studies.
The article aims to highlight financial gaps, savings behaviors, and strategies to improve economic security.
References
- Federal Reserve – Survey of Consumer Finances 2022
- Federal Reserve – Transaction Accounts by Age
- Bureau of Labor Statistics – 2022 Consumer Expenditure Survey
- Business Insider – Black History Month: Wealth Inequality in America
- Federal Reserve – Transaction Accounts by Homeownership
- Finance Monthly – Typical Savings Account Balance for Americans
- Bankrate – Financial Freedom Survey
- Bankrate – Retirement Savings Survey
