Based on 2022 Federal Reserve data, $8,000 is the median transaction account balance (including checking, savings, and money market accounts) for a typical American household. This means that roughly 50% of American households have less than $8,000 in these accounts, while 50% have more. This figure represents a significant increase from 2019, when the median was $6,140.
Breaking the survey data down a bit further, we find that 34% of Americans don't have a dime in their savings account, while another 35% have less than $1,000. Of the remaining survey-takers, 11% have between $1,000 and $4,999, 4% have between $5,000 and $9,999, and 15% have more than $10,000.
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.
The median savings balance in the United States: $8,000
That's up from 2019, when the median transaction account amount was $6,140 and much higher than the balance recorded in 2010, $4,780. The average bank balance in 2022 was $62,410, up from $48,220 in 2019 and $44,050 in 2010.
An alarming new poll reveals that half of American adults have $500 or less in their savings account, with 39% having $250 or less. Additionally, 40% of Americans keep a minimum balance of $500 or less in their checking account.
The "27.39 rule" (often rounded to $27.40) is a simple financial strategy to save $10,000 in one year by consistently setting aside $27.40 every single day, making it an achievable micro-saving habit to build wealth or an emergency fund. It turns the daunting goal of saving $10,000 into a manageable daily action, emphasizing consistency over large lump sums.
Numbers from the Federal Reserve's 2022 Survey of Consumer Finances suggest they are. The average remaining retirement savings for the 75-and-up crowd at that time was $462,410.
The top ten financial mistakes most people make after retirement are:
Americans in their 60s have the most saved for retirement with average balances close to $1.2 million. Average account balances more than double between those in their 20s vs their 30s.
Federal Reserve data reveals what savings a typical American has by age, household type, and education. According to the Fed's Survey of Consumer Finances, the median amount held in bank accounts across all American households in 2022 (the most recent data available) was $8,000.
Though it depends on your financial situation, you should try to have enough savings to cover three to six months of expenses in case of an emergency. Stashing 20% of your monthly income is a good way to start building your savings.
Only one-quarter of Americans (25%) have balances of $2,000 or more.
The smartest move with $10k depends on your financial situation, but generally involves prioritizing high-interest debt, building an emergency fund in a high-yield savings account, then investing in tax-advantaged retirement accounts (like an IRA or 401(k) boost), diversified index funds, or bonds/Treasuries for growth, while also considering investing in yourself (skills/education) for long-term returns.
The average retiree's monthly expenses in the U.S. hover around $4,600 to $5,400, with younger retirees (65-74) spending more, often over $5,000 monthly, while those 75+ spend closer to $4,400 as transportation and entertainment costs decrease, though healthcare costs can rise, with housing, transportation, healthcare, and food being the biggest categories.
One in five Americans over the age of 50 have no retirement savings, according to a survey by the AARP. And even if you have something tucked away, it may not be enough — though that is something you can change even late in the game.
Here are the median and average checking account balances in the US as of 2022, which is the most recent data available, for Americans who have checking accounts: Median: $8,000.