A drowning piggy bank
An alarming new poll reveals that half of American adults have $500 or less in their savings account, with 39% having $250 or less. Additionally, 40% of Americans keep a minimum balance of $500 or less in their checking account.
“Americans are under immense financial pressure,” according to a report from GOBankingRates, which conducted the survey of more 1,000 adults in December. “While inflation is evening out, prices for many everyday expenses remain high, and high interest rates are leading to larger mortgage and car payments for many consumers. With the cost of living so elevated, many Americans are living paycheck to paycheck, and may not be able to keep as much money in their bank accounts as they should.”
Recommended For You
No wonder the survey found that 60% of American adults are “extremely” or “somewhat” stressed about their current financial situations.
Adults between ages 25 and 34 and 45 to 54 were the two demographic groups that most frequently reported savings account balances of $500 or less, while adults 65 and older were most likely to have balances of $2,000 or more.
Checking account balances also are “dangerously low,” according to the report. Almost half (49%) of respondents ages 45 to 54 kept a minimum balance of $500 or less, while adults older than 65 were more likely to keep higher balances. What’s more, more than one-third admitted they’ve had an overdraft on their account in the past year; 11% have done so multiple times.
“The right checking and savings balances are unique to your financial situation,” says Seth Diener, client portfolio manager and team lead at Diener Money Management in Newtown, Pa., who is quoted in the GOBankingRates report.
“Assess your expenses, income stability, and risk tolerance to determine how much you feel comfortable keeping readily available. Try to have three to six months of living expenses in a savings account for an emergency fund. This helps cover unexpected costs without going into debt. If you have under three months of expenses saved, make building up your emergency fund a priority. Even small, regular contributions help grow your savings over time. … [Also] aim to keep one to two months of living expenses in your checking account as a buffer. This helps avoid overdraft fees and having to transfer from savings frequently.”
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
