The rising cost of living in the U.S. is squeezing household budgets, leaving a large portion of the population with little to no savings. A recent GOBankingRates survey reveals that 66% of Americans are stressed about their savings, and 14% anticipate needing to draw from them just to cover expenses this year.
Savings Levels: A Grim Picture
The data shows that 40% of Americans have $250 or less in savings, with a concerning 18% having nothing saved at all. Only 25% report holding $2,000 or more.
This lack of savings is a systemic issue, not just individual failings. The trend reflects decades of wage stagnation, rising debt (student loans, medical bills), and housing costs outpacing income growth. This creates a vicious cycle where many households are forced to prioritize immediate needs over long-term financial security.
Paycheck Allocation: Most Save Nothing
The survey found that 34% of Americans save nothing from their paycheck, while another 32% save less than 10%. Gen X (ages 45–54) is particularly vulnerable, with 42% reporting they live paycheck to paycheck and cannot contribute to savings.
However, younger generations are showing a slightly different pattern: Gen Z (ages 18–24) is more likely to dedicate a larger percentage of their income to savings, with 10% saving between 31% and 50%, and 5% saving over half their earnings.
The Emergency Fund Gap
Financial experts typically recommend having three to six months of living expenses saved for emergencies. Yet, the vast majority of Americans fall short. Nearly 20% have no savings, and another 21% have less than $250.
This gap leaves millions exposed to financial ruin in the event of job loss, medical emergencies, or unexpected expenses. It also highlights the need for systemic changes, such as better financial literacy programs and policies that support wage growth and affordable housing.
Saving Habits: Why It Matters
The ideal savings rate depends on individual circumstances, but the survey underscores the urgency for many to prioritize financial security. The findings reveal that the current economic landscape makes saving difficult, but not impossible.
For those with limited savings, building an emergency fund should be the first priority. For those already secure, directing excess income toward retirement, investments, or debt reduction can further strengthen financial stability.
Ultimately, these numbers point to a widespread vulnerability in the U.S. economy. The inability to save is not just a personal problem; it’s a collective risk that threatens long-term financial stability for millions of Americans.
Methodology: The GOBankingRates survey polled 1,006 U.S. adults on topics related to their financial well-being, including savings levels, paycheck allocations, and banking preferences. The results provide a snapshot of the current savings crisis facing many Americans.
