What the Data Shows
The average American household has roughly $11,400 in savings accounts, but the median is far lower — around $3,500. That gap matters because a few high savers pull the average up, while most families sit closer to the median. These figures come from the Federal Reserve's Survey of Consumer Finances and reflect what households report having in transaction and savings accounts.
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When people ask about savings, they often mean the money set aside for emergencies, large purchases, or the future — not retirement accounts. Even with that narrower focus, the numbers reveal a country where many households would struggle to cover a $1,000 surprise expense without borrowing or selling something.
Savings by Age Group
Age shapes savings habits more than almost any other factor. Younger households tend to have little in the bank, while those approaching retirement have had decades to accumulate — though rising housing and healthcare costs have eroded that advantage for many.
| Age Group | Median Savings | Average Savings |
|---|---|---|
| Under 35 | ~$3,000 | ~$11,200 |
| 35–44 | ~$5,600 | ~$27,900 |
| 45–54 | ~$6,400 | ~$36,600 |
| 55–64 | ~$7,000 | ~$40,000+ |
| 65+ | ~$5,300 | ~$37,300 |
Why the Average and Median Diverge
A small share of households holds a disproportionate share of liquid savings. High-income families, older homeowners, and those without debt can stash tens of thousands in accounts, which inflates the national average. Meanwhile, many working households — especially those living paycheck to paycheck — have little to no cash buffer. That split means the median is usually a more realistic picture of what a typical American has saved.
What Counts as Savings
Survey data typically includes checking accounts, savings accounts, money market funds, and certificates of deposit. It excludes retirement accounts like 401(k)s and IRAs, real estate equity, and investments. If you include retirement savings, the average jumps substantially — but most Americans still lack a robust liquid emergency fund.
Steps to Build a Savings Cushion
- Pay yourself first by automating a transfer to savings on payday.
- Target a starter emergency fund of $1,000, then build toward three to six months of expenses.
- Use a high-yield savings account to earn more interest on the balance.
- Reduce recurring expenses and direct the savings toward your account.
- Set specific short-term goals — a vacation, car repair, or medical bill — to stay motivated.