How Much Do Americans Have in Their Savings Accounts in 2023?

How much money do Americans typically have in their savings accounts in 2023? Surprisingly, about a third of them have $100 or less.

A recent survey by Cram Finance, which included over 1,000 participants aged 18 and above, revealed that 32.9% have no more than $100 in savings. This marks an increase from 2022, where 22% reported having $100 or less.

Though these figures may raise concerns, there’s more to the story. Let’s delve into the details of American saving habits, including ideal savings amounts and management tips.

Understanding the Demographic Details

The survey comprised 48% male and 52% female participants, distributed across various age groups:

  • 18-24 years: 22.40%
  • 25-34 years: 22.10%
  • 35-44 years: 23%
  • 45-54 years: 13.60%
  • 55-64 years: 9.20%
  • 65+ years: 9.70%

It’s important to note that the 32.9% figure representing those with $100 or less in savings is an average across these demographics. For instance, 30% of the 18-24 age group reported having $100 or less, with a gender breakdown of 36% women and 27% men.

Multiple Savings Accounts: A Common Practice

The statistic that 32.9% of Americans have less than $100 in a savings account may not reflect their entire financial situation. Many people maintain multiple savings accounts for different purposes, such as emergency funds or saving for specific goals.

Katie Ross from American Consumer Credit Counseling notes that having different types of savings accounts is typical. Cram Finance’s survey found that 56% of respondents would consider opening accounts across various banks, especially those aged 45-54 (63%) and 35-44 (62%). Men (60%) were slightly more inclined than women (53%) to open accounts in different banks.

Ideal Savings Amounts

According to Ross, the ideal savings amount depends on your goals. For emergencies, it’s recommended to have at least six months’ worth of living expenses. The survey showed a significant age variation in savings amounts. For example, only 8% of 18-24-year-olds have $10k in savings, compared to 25% of those aged 55-64.

Ross also suggests adjusting savings during inflation to cover increasing daily expenses, whether it’s for an emergency fund or a specific savings goal.

Savings for Near-Retirees

For individuals approaching retirement, Ross advises maintaining higher savings. Just 19% of those 65 or older reported having over $10k in savings. Ample savings can help avoid reliance on credit cards, especially in emergencies.

Tips for Effective Savings Management

Ross offers three key tips for managing savings:

  1. Conduct Research: Choose a savings account that is not easily accessible and earns interest. Research is crucial to find the best option.
  2. Preserve Your Savings: Avoid spending from your savings account to ensure funds are available for emergencies or specific goals.
  3. Annual Review: Reassess your savings yearly to adjust for life changes like salary variations, home purchases, or family expansion. Consider inflation impacts on goal-oriented savings accounts.

In conclusion, while a significant number of Americans have limited savings, understanding the nuances of savings behaviors, such as the use of multiple accounts and demographic variations, is crucial. Additionally, following expert advice on savings management can lead to more effective and secure financial planning.