In 2019, savings across all the US financial institutions totaled to approximately $9.34 trillion, more than ever before. Gross private savings came to $4.64 trillion while personal savings total $1.06 trillion.
As of June 2019, the personal savings rate in the US is 8.1%. The average savings account balance in the US is $16,420 while the median savings account balance is $4,830.
When looking at saving rates by generation, baby boomers take the lead with a median balance of $152,000. Following baby boomers is Gen Xers with an average of $66,000 to fall back on and millennials who have saved an average of $23,000, even though they start saving for retirement the youngest.
A study conducted by Get Rich Slowly suggested the states that save the most are South Dakota, North Dakota and North Carolina, respectively. Bank of America seems to be the favored US bank with a total of $1.31 trillion in total deposits. Chase Bank followed at a close $1.27 trillion in deposits, ranking above Wells Fargo, Citibank and U.S. Bank.
Here’s an in-depth look at our saving statistics: https://www.finder.com/
I had a chance to do an interview to learn more.
Why is there such a difference between average and median savings amounts?
The difference between the average and median savings amounts illustrates the great divide between casual savers and serious savers - there are far more people who don't or can't save nearly as much as those few who've saved a lot.
How can people figure out if they have an appropriate amount in savings?
Whether a person has enough savings depends a lot on what they're saving for. You can often benchmark your savings target to an average if you're saving up for a vacation or a wedding or a car; you can always finetune it as your planning gets more detailed. But many savers start with the goal of creating a cushion for emergencies, and the optimal amount for that is often cited as three to six months worth of your regular expenses.
I believe perspective is one of the biggest differentiators between casual and serious savers. If you want to truly value the peace of mind that comes from an emergency fund or the financial security of replacing the things you need to live or those future goals and dreams you have, then try to prioritize them accordingly, which means you "pay" yourself for those things first and then put pressure on yourself to either cut your spending on the less important expenses or find new ways to pay for them. An easy first step is to set up automatic transfers to your savings after each paycheck - you can even ask your employee to split your paycheck and deposit an amount or percentage straight into your savings account.
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