The median American household has between $8,000 and $15,000 in savings, but the average is much higher because wealthy households pull the number up

The difference between median and average matters here. The median — the middle point where half of households have more and half have less — sits around $8,000 to $15,000 depending on the survey and year. The average — total savings divided by number of households — is roughly $40,000 to $50,000, but that number is misleading because a small number of very wealthy households skew it upward. If you have $10,000 saved, you are closer to the middle of American households than the average suggests.

These numbers come from surveys like the Survey of Consumer Finances (run by the Federal Reserve) and the Current Population Survey. They measure liquid savings — money in checking and savings accounts that you can access quickly — not retirement accounts, home equity, or investments. The surveys ask households directly about their balances, so the numbers reflect what people report, not what banks see across all accounts.

The real pattern is this: roughly 40 percent of American households report they could not cover a $400 emergency from savings alone. That means they either have no savings account or have less than $400 in it. The other 60 percent have varying amounts, with most clustering in the low thousands and a smaller group with six figures or more.

Key Takeaways

  • The median household savings is $8,000 to $15,000, meaning half of households have more and half have less.
  • The average is higher (around $40,000 to $50,000) because wealthy households pull the number up, so the average does not describe a typical household.
  • About 40 percent of households have less than $400 in liquid savings and could not cover a small emergency without borrowing.
  • These figures measure only money in checking and savings accounts, not retirement accounts, investments, or home equity.
  • Savings amounts vary sharply by age, income, and employment status — younger workers and lower-income households typically have less.

How savings breaks down by age and income

Younger workers (ages 18 to 35) typically have less in savings than older workers, partly because they have had less time to accumulate money and partly because they often carry student debt. A worker in this age group with a median income might have $2,000 to $5,000 in savings. Workers ages 35 to 50 often have more — $10,000 to $25,000 — because they have been earning longer and may have paid down debt. Workers over 50 sometimes have higher balances, though this varies widely depending on whether they have access to a pension or retirement plan.

Income matters more than age. A household earning $100,000 per year typically has more in savings than a household earning $40,000, even if both are the same age. Higher-income households can set aside money after paying bills; lower-income households often spend most of what they earn on housing, food, and transportation. A household in the top 25 percent of income might have $50,000 or more in savings, while a household in the bottom 25 percent might have under $1,000.

Employment status also shifts the picture. Households where both partners work full-time tend to have more savings than single-income households. Self-employed workers and gig workers often have less in savings because their income fluctuates and they may not have employer benefits or paid time off.

Why the average is not your benchmark

The average savings figure ($40,000 to $50,000) describes almost nobody. It exists because a small number of households with $500,000 or $1 million in savings pull the total upward. If you line up 100 households by savings amount, you might see: 40 households with under $1,000, 30 households with $1,000 to $20,000, 20 households with $20,000 to $100,000, and 10 households with over $100,000. The average of all those balances is much higher than what the typical household (in the middle of that line) actually has.

This is why financial advisors and researchers use the median instead. The median tells you what the middle household has, which is more useful for understanding whether your own savings are typical. If you have $12,000 in savings, you are near the median and therefore near the middle of American households — even though the average is much higher.

What counts as savings in these surveys

The surveys measure liquid savings — money you can access within days without penalty. This includes checking accounts, savings accounts, and money market accounts. It does not include retirement accounts (401k, IRA), stocks, bonds, real estate, or vehicles. It also does not include money you have borrowed against, like a home equity line of credit.

This distinction matters because a household might have $8,000 in a savings account but $200,000 in a 401k and own a home worth $300,000. The surveys count only the $8,000. That household is not poor, but it would show up in the data as having modest liquid savings. Conversely, a household might have $50,000 in a savings account but owe $60,000 in credit card debt — the surveys count the $50,000 but not the debt.

How savings rates have changed over time

American household savings declined from the 1980s through the early 2000s as credit became easier to access and housing prices rose. During the 2008 financial crisis, households began saving more out of fear and necessity. The savings rate (the percentage of income that households save rather than spend) rose from around 2 percent in 2007 to 5 percent or higher in 2009. It has since settled back to around 3 to 5 percent in most years, though it spiked again during the COVID-19 pandemic when spending was restricted and government payments boosted income.

The absolute amount in savings accounts has also shifted. Inflation erodes the purchasing power of money sitting in a savings account, especially when interest rates are low. A household that had $10,000 in savings in 2015 would need roughly $12,000 in 2024 to have the same purchasing power. Some households have moved money into higher-yield savings accounts or money market accounts to earn more interest, which has changed where savings sit but not necessarily how much households have.

Why your own savings target matters more than the average

The average and median are useful for context — they tell you whether you are saving more or less than most households — but they should not be your target. Your savings goal depends on your own situation: your monthly expenses, your job stability, whether you have dependents, and what emergencies you want to cover.

A common guideline is to keep three to six months of expenses in a savings account for emergencies. If your monthly expenses are $3,000, that means $9,000 to $18,000. If your expenses are $5,000 per month, it means $15,000 to $30,000. This target is more useful than the national average because it is tied to what you actually need to spend. Someone with $8,000 in savings might be well-prepared if their monthly expenses are $1,500, but underprepared if their monthly expenses are $4,000.

Frequently Asked Questions

Is $10,000 in savings good?

It depends on your monthly expenses and income. If your monthly expenses are $2,000, then $10,000 covers five months — a solid emergency fund. If your monthly expenses are $5,000, then $10,000 covers only two months, which is less cushion. Compare your savings to three to six months of your own expenses, not to the national average.

What percentage of Americans have no savings?

Surveys vary, but roughly 20 to 40 percent of households report having no savings account or having less than $1,000 in liquid savings. The exact percentage depends on how the survey defines savings and whether it includes money in checking accounts. The Federal Reserve's surveys suggest that about 40 percent of households could not cover a $400 emergency from savings.

Do retirement accounts count as savings?

No. The surveys that measure household savings count only liquid savings — money in checking and savings accounts. Retirement accounts like 401k and IRA are tracked separately. A household might have very little in a savings account but substantial money in retirement accounts, which would not show up in the savings figures.

Why is my savings lower than the average?

The average is pulled upward by wealthy households with very large balances. The median — the middle point — is a better comparison. If you have less than the median ($8,000 to $15,000), you are in the lower half of households, but that does not mean you are doing something wrong. Your goal should be to cover your own expenses for three to six months, not to match a national average.

Does the survey include money in checking accounts?

Yes. The Federal Reserve's Survey of Consumer Finances asks about money in checking accounts, savings accounts, and money market accounts. It treats all three as liquid savings. Some surveys separate checking from savings, so the exact definition varies by source.