What Is the Average American Savings Account Balance?

[OfTheCross]

Answering the question of how much the American has in savings depends on how you define savings. According to data from the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC), Americans actually have an average of $183,200 in savings as of June 2019. That number includes all bank accounts and retirement accounts, though. Although this sounds promising, across all households, 29% of Americans have less than $1,000 in savings.

Tumin recommends setting aside an emergency fund of at least six months of your current income. “In my previous career, I witnessed many coworkers being laid off during recessions,” he said. “An emergency fund of at least six months is very helpful if you experience this.”

If you’re young, single and not a homeowner, you might be able to get away with less (at least three months of income would be good, though). If you’re married, you have children, you own a home or you have frequent medical bills, you might want to save more (at least six months of income). If you’re self-employed, you might want to save even more (as much as nine to 12 months of income).

depositaccounts

I'm of the theory that we really don't need Emergency Funds anymore thanks for credit cards and insurance policies. It's not a hard and set rule, but it's a theory I have

[Cyber Liberty]

I'm of the theory that we really don't need Emergency Funds anymore thanks for credit cards and insurance policies. It's not a hard and set rule, but it's a theory I have

It's a good theory for people who don't understand Interest.

[roamer_1]

I'm of the theory that we really don't need Emergency Funds anymore thanks for credit cards and insurance policies. It's not a hard and set rule, but it's a theory I have

Ah... youngster, I see...

[catfish1957]

I'm of the theory that we really don't need Emergency Funds anymore thanks for credit cards and insurance policies. It's not a hard and set rule, but it's a theory I have

"Americans actually have an average of $183,200 in savings as of June 2019."

Crappy statistic.  There's a whole lot of large numbers skewing the "so called average" savings.  If you were to take a "median", I'd bet it will be much less than half of that.   Fact is, Americans in general has prepensity of living pay check to paycheck, and on the edge with their credit cards.  Savings is a hobby only for the few of us who are left to care.

And as far as emergency funds, people in disaster prone areas need to have a cache of solid cash to cover expenses, while banks are closed.  In Rita's aftermath, the banks were closed 3 weeks.

[Cyber Liberty]

"Americans actually have an average of $183,200 in savings as of June 2019."

Crappy statistic.  There's a whole lot of large numbers skewing the "so called average" savings.  If you were to take a "median", I'd bet it will be much less than half of that.   Fact is, Americans in general has prepensity of living pay check to paycheck, and on the edge with their credit cards.  Savings is a hobby only for the few of us who are left to care.

And as far as emergency funds, people in disaster prone areas need to have a cache of solid cash to cover expenses, while banks are closed.  In Rita's aftermath, the banks were closed 3 weeks.

A crappy statistic from a purveyor of crappy statistics.  Watching some people wield statistics is like watching a 3-year-old who just found Dad's gun in the nightstand.  Scary as Hell.

What you are describing is a curve that is wildly "non-normal," where the Median is never equal to the Mean.  Fertile ground for shysters.

[roamer_1]

"Americans actually have an average of $183,200 in savings as of June 2019."

Crappy statistic.  There's a whole lot of large numbers skewing the "so called average" savings.  If you were to take a "median", I'd bet it will be much less than half of that.   Fact is, Americans in general has prepensity of living pay check to paycheck, and on the edge with their credit cards.  Savings is a hobby only for the few of us who are left to care.

Fitty bucks. That's what is in the bottom of all my actual accounts. Pretty much zero.

And as far as emergency funds, people in disaster prone areas need to have a cache of solid cash to cover expenses, while banks are closed.  In Rita's aftermath, the banks were closed 3 weeks.

See, that's more the thing. I have hit personal disaster, and weathered it fine for more than two years. Part of my 'investment in savings' translates into long term food storage as a matter of course, and general independence.

It really does not take a lot of money. What it takes, as most country folk know, is that spirit of independence - Knowing you gotta take care of you. And planning accordingly.

Generally that isn't about money - It;s about lifestyle.

[catfish1957]

Fitty bucks. That's what is in the bottom of all my actual accounts. Pretty much zero.


See, that's more the thing. I have hit personal disaster, and weathered it fine for more than two years. Part of my 'investment in savings' translates into long term food storage as a matter of course, and general independence.

It really does not take a lot of money. What it takes, as most country folk know, is that spirit of independence - Knowing you gotta take care of you. And planning accordingly.

Generally that isn't about money - It;s about lifestyle.

Very good point.  I am OCD when comes to checking net worth, and budgetting.  I prep 3 budgets annually.  Normal, Austere, and Emergency.  It's not a point of only of how much you make, but how much you spend.

Excellent.  You teaching preppers courses? 

[roamer_1]

Very good point.  I am OCD when comes to checking net worth, and budgetting.  I prep 3 budgets annually.  Normal, Austere, and Emergency.  It's not a point of only of how much you make, but how much you spend.

Excellent.  You teaching preppers courses?

Nah, I am barely a prepper... The only claim to that I have is a pile of Mountain House for ultra long term food - But that ain't really fair either...  Mountain House is a staple thing for out in the sticks... My go-bag has three days of MH in it at all times, and my truck has a bucketful, always - so it is something I go through some anyway... Which is why I stocked up... not because I figured to need it 25 years from now. I buy it by the bucket, and I wait for good deals - And then I buy a lot. So yeah, I could probably survive on MH alone for about a year after the canning shelves are dry. 

Mostly just country. Redneck 101, man. Grow your own, put it up yourself, and you will have a plenty that just don't quit. As a matter of course you'll get three years in the pantry... Same with keeping fuel around - That is because of the farm, not because I am a prepper... Same with tools and being able to fix for yourself... Buy it broke and fix it... That's how I get nice things.

That's why the money ain't all that - I went that way... six figures that way... And seen it all go up in smoke in three months. What I do now, hearkening back to my roots, is far more durable.

As far as money does go, I have found it far more useful to keep it rolling over on the local street than anything else. So long as I can keep flipping things, I am making more, with less investment that I ever did with 10 employees... In real, unencumbered cash.


 

[Cyber Liberty]

Nah, I am barely a prepper... The only claim to that I have is a pile of Mountain House for ultra long term food - But that ain't really fair either...  Mountain House is a staple thing for out in the sticks... My go-bag has three days of MH in it at all times, and my truck has a bucketful, always - so it is something I go through some anyway... Which is why I stocked up... not because I figured to need it 25 years from now. I buy it by the bucket, and I wait for good deals - And then I buy a lot. So yeah, I could probably survive on MH alone for about a year after the canning shelves are dry. 

Mostly just country. Redneck 101, man. Grow your own, put it up yourself, and you will have a plenty that just don't quit. As a matter of course you'll get three years in the pantry... Same with keeping fuel around - That is because of the farm, not because I am a prepper... Same with tools and being able to fix for yourself... Buy it broke and fix it... That's how I get nice things.

That's why the money ain't all that - I went that way... six figures that way... And seen it all go up in smoke in three months. What I do now, hearkening back to my roots, is far more durable.

As far as money does go, I have found it far more useful to keep it rolling over on the local street than anything else. So long as I can keep flipping things, I am making more, with less investment that I ever did with 10 employees... In real, unencumbered cash.

I have quite a bit of Mountain House too...mainly because I like it and it's can be prepared using the microwave oven in the Master Bedroom galley.  That and I need to be sure and rotate the vittles....most of it expires in 2047. 

[roamer_1]

I have quite a bit of Mountain House too...mainly because I like it and it's can be prepared using the microwave oven in the Master Bedroom galley.  That and I need to be sure and rotate the vittles....most of it expires in 2047. 

I dunno how much I have really... Somewhere around twenty buckets... If I can get at it for under 3 bucks a meal, I buy hard.

But I am going another way - Ever heard of Thrive Life Foods? They sell pure organic freeze-dried in coffee cans... Everything from meat, cheese, and butter, to veggies and berries... I am in it about 250 bucks right now... And I have to figure out how to roll it into my inventory (pantry)... Trying to come up with some good recipes... But if it works out like I think it will, I will be storing that instead, and making my own meals for up in the sticks... A whole lot cheaper.

[Gefn]

I was brought up where you should have about half year wages in your savings account to fall back on. Do people still do that? I don’t know too many people who don’t have more than a couple thousand saved up. I also know quite a few who have none.

[roamer_1]

I was brought up where you should have about half year wages in your savings account to fall back on. Do people still do that? I don’t know too many people who don’t have more than a couple thousand saved up. I also know quite a few who have none.

Not me. But I can comfortably live for years on what is in the pantry - and that is sustainable, as long as I can keep putting in the garden, raising chickens, beef, and hunting and fishing.

As for money, that is mostly tied up in hard goods that retain their value (or improve), that I can normally sell at a pretty good profit...

You have to understand though - my security went away when I got ill, and was not helped by a crashing portfolio (thank you Dubya) ... and insurance that dropped me like a hot rock the minute I needed em. Savings accounts, like all banking accounts, are a lie. Investment accounts are too. As is insurance.

ALL of it depends upon keeping all the balls in the air, and forces beyond your control doing the same.
If you fall down, or it falls down... doesn't matter why... In an instant, poof! No eyebrows.

[berdie]

It's a good theory for people who don't understand Interest.

Or paying the debt down on a credit card...when you don't have any money to begin with.

[IsailedawayfromFR]

It's a good theory for people who don't understand Interest.

Or credit scores that happen when you cannot pay it off.

[IsailedawayfromFR]

I was brought up where you should have about half year wages in your savings account to fall back on. Do people still do that? I don’t know too many people who don’t have more than a couple thousand saved up. I also know quite a few who have none.

I'll take it a step simpler.

A lot of people do not even know what the term 'Savings' mean.

It is not stocks or bonds(and definitely not mutual funds), but a lot of folks who have piled money into those believe it is.

There are exceptions(like burying your gold) but my ROT is if not in an account FDIC or NCUA insured, it ain't savings.

[OfTheCross]

It's a good theory for people who don't understand Interest.

Think of it this way...if you already own a home and have insurance on it

You already own a car and have insurance on it.

You have Life Insurance on yourself, spouse and children

You live within your means...

Why do you need Emergency Funds? Anything more than a month of expenses seems excessive.

Now, that's not to say to not have Retirement and Investments. You can pull from there if things really get gnarly.

But an Emergency Savings account sitting at your bank or credit union with 6 months of expenses seems unnecessary.

If you're doing things the right way, you should have great credit and 25 - 30K available for emergency expenses via the credit card companies.

[Cyber Liberty]

Think of it this way...if you already own a home and have insurance on it

You already own a car and have insurance on it.

You have Life Insurance on yourself, spouse and children

You live within your means...

Why do you need Emergency Funds? Anything more than a month of expenses seems excessive.

Now, that's not to say to not have Retirement and Investments. You can pull from there if things really get gnarly.

But an Emergency Savings account sitting at your bank or credit union with 6 months of expenses seems unnecessary.

If you're doing things the right way, you should have great credit and 25 - 30K available for emergency expenses via the credit card companies.

You've either led a very sheltered life with a silver spoon in your mouth, or you're 13 years old, or you have a serious learning disability to ask a question like that.

[roamer_1]

Think of it this way...if you already own a home and have insurance on it

You already own a car and have insurance on it.

You have Life Insurance on yourself, spouse and children

You live within your means...

Why do you need Emergency Funds? Anything more than a month of expenses seems excessive.

Now, that's not to say to not have Retirement and Investments. You can pull from there if things really get gnarly.

But an Emergency Savings account sitting at your bank or credit union with 6 months of expenses seems unnecessary.

If you're doing things the right way, you should have great credit and 25 - 30K available for emergency expenses via the credit card companies.

Sh*t happens. And in 3 months, all gone.

[Cyber Liberty]

Sh*t happens. And in 3 months, all gone.

I'm guessing a 13-year-old.  Or a doctrinaire leftist who thinks we're all 13-year-olds. 

[OfTheCross]

You've either led a very sheltered life with a silver spoon in your mouth, or you're 13 years old, or you have a serious learning disability to ask a question like that.

Sh*t happens. And in 3 months, all gone.

If whatever happens can't be resolved quickly then you'd have to liquidate your investments if cash is the only solution for it.

But most problems have other solutions. Like I said, all of your most expensive things are insured already. Home, car, self.

I rather use my cash to invest it, rather than having it earn me a nickle a month in interest.

[Cyber Liberty]

If whatever happens can't be resolved quickly then you'd have to liquidate your investments if cash is the only solution for it.

But most problems have other solutions. Like I said, all of your most expensive things are insured already. Home, car, self.

I rather use my cash to invest it, rather than having it earn me a nickle a month in interest.

I was correct in my guess:  You don't understand Interest. 

[OfTheCross]

I was correct in my guess:  You don't understand Interest.

Why do you say that?

Every credit card I own allows me to pull cash out at 0% interest for 12, 15, or 18 months. What's a $300 or $400 transaction fee on 10K for 18 months?

You've got to use your leverage sometimes, my friend.

[roamer_1]

I'm guessing a 13-year-old.  Or a doctrinaire leftist who thinks we're all 13-year-olds.

Definitely naive.

[LadyLiberty]

The idea of charging my cards up to those levels makes me feel physically ill.  I use my credit cards extensively, but pay them off in full every month and I have never paid interest on them.  They are a tool, not a safety net.

[roamer_1]

If whatever happens can't be resolved quickly then you'd have to liquidate your investments if cash is the only solution for it.

But most problems have other solutions. Like I said, all of your most expensive things are insured already. Home, car, self.

I rather use my cash to invest it, rather than having it earn me a nickle a month in interest.

You REALLY don't know what you're talking about.
Insurance requires income.
Your entire theory assumes you will not get wrecked.
But chances are, you will get wrecked.
And all that happy crap is gone in 3 months.
*GONE*

What you believe is a lie, pure and simple.
To the basic premise: Profit requires risk.
That never changes.
Risk really cannot be insured against. When it blows up real good, someone is going to be the bagholder, and that won't be the folks with the money.  That is how it works.

I know. I walked that road. There and back again.