Are you curious how your savings stack up to other Americans? According to the Federal Reserve’s Survey of Consumer Finances, the median savings account balance for all families was $5,300 in 2019, the last time the survey was conducted.
Savings account balances can vary greatly depending on income, age, education and race. For example, people with higher incomes who may have more disposable income tend to have higher savings account balances. And older Americans who have had more time to save tend to have more savings than younger Americans just starting their careers.
“Differences in savings account balances depend on circumstances such as age, the purpose of the funds, income level, cost of living, lifestyle, risk appetite and on other financial priorities,” says money coach and certified financial planner Ohan Kayikchyan.
Explore the breakdown of median savings account balances based on income percentile, age, education level and race to gain insights into savings trends and disparities.
Savings by Income Percentile
Higher income typically translates to higher savings rates. The Federal Reserve data shows that the median transaction account balance increases at higher income percentiles. Transaction accounts generally include checking or savings deposit accounts.
While the lowest earners at the 20th percentile or less have a median transaction account balance of $810, the highest earners in the 90th to 100th percentile have a median account balance of $70,000.
Savings by Age
Older Americans generally have more savings than younger ones. Those 75 and older have a median transaction account of $9,300, nearly triple the $3,240 median for those under 35. But Americans 45 to 54, with a median of $6,400, are out-saving the 55 to 64 bracket with a median of $5,620.
Savings by Education
Higher levels of education signal higher savings balances, as Americans with college degrees save far more than those without degrees. And it seems college completion makes a difference, as those with college degrees have a median of $15,400 in transaction accounts, much more than the $3,900 median of those with some college but no degree.
High school completion is another key indicator, as high school graduates have more than double the median transaction account balances of those with no high school diploma – $2,500 versus $1,020.
Savings by Race
There are clear racial disparities in savings rates. White, non-Hispanic Americans have a median transaction account balance of $8,200, compared to $1,510 for Black, non-Hispanic Americans and $1,950 for Hispanic Americans. Other Americans – including Asian, American Indian, Alaska Native, Native Hawaiian, Pacific Islander and other races – have a median transaction account balance of $5,000.
How Much Should You Have Saved?
While median savings account balances vary significantly based on income, age, education and race, your savings may differ.
Rosalyn Glenn, a financial planner at Prudential in Columbia, South Carolina, says there isn’t really a benchmark savings account balance to shoot for because savings level is relative to individual financial priorities. “I recommend a minimum savings balance of three to six months of your monthly living expenses,” she says. “Anything over that should be invested.”
Do you want to grow your savings? Kayikchyan recommends starting small with as much as you can reasonably set aside – a $1,000 savings goal is a good start. “It’s all about establishing that saving habit,” he says.