A look at the average American’s savings

The average American's savings varies by household and factors such as age, education level and income bracket. In 2022, the typical transaction account balance (checking and savings combined) for the American family was $8,000; the average transaction account balance was $62,410.

With these figures in mind, how much does the average American save a month? The 2022 Federal Reserve Survey of Consumer Finances provides information about transaction account balances, which cover both average checking account and average savings account balances. Read on for savings trends among Americans and tips for maximizing your savings.

Average savings by age

Older age groups generally have larger average account balances (though some exceptions exist).

Americans ages 65 to 74 have the highest average account balances at $100,250.

Average savings by income percentile

In general, people with higher incomes have higher account balances; those in the top 10% of income earners had an average account balance of $353,030.

Average retirement savings

Retirement savings are typically considered separate from traditional checking and savings account balances. The data below shows how American households save money when preparing for the future. Keep in mind that the amount below for ages 75 and older reflects the fact that these individuals are likely drawing on their retirement and/or no longer contributing to their retirement.

• Younger than 35 - $49,130 average balance
• Ages 35 to 44 - $141,520 average balance
• Ages 45 to 54 - $313,220 average balance
• Ages 55 to 64 - $537,560 average balance
• Ages 65 to 74 - $609,230 average balance
• Ages 75 or older - $462,410 average balance

Tips for maximizing your savings

Building a savings plan may help you achieve your financial goals while ensuring you have enough money to cover unexpected expenses.

Savings tips include:

• Create a budget: Budgeting may help you know where your money is going each month, enabling you to develop strategies to reduce spending and contribute more money to savings.
• Automate your savings: Consider setting up automatic transfers from your monthly income to your savings account or retirement plan.
• Explore creating separate accounts: Having separate bank accounts for different purposes — for instance, one for checking and one for savings — may help you ensure savings remain untouched.
• Research different ways to save: Using different savings vehicles, such as high-yield savings accounts and certificates of deposit (CDs), may earn interest and potentially protect you against market fluctuations.
• Consolidate debt: Consolidating debts to a lower interest rate may save money in the long term, helping reduce your overall payments each month.
• Consult a financial professional: Financial experts may help you create a savings plan based on your financial situation.