Friendly reminder: You can grow your savings stash anytime. (Thanks to a free online course.)
Picture this: You’re with a friend at a bustling cafe, sipping on your signature drink, when they casually mention the giant wad of cash they’ve got stashed for retirement. A pit forms in your stomach as, à la Carrie Bradshaw, you wonder, Am I saving enough? It’s a question that often creeps into our minds, especially in a world where financial security is a top priority.
We all want to know where we stand financially compared to our fellow citizens, and luckily, there are stats that can offer a glimpse into how much people are saving, ranked by their age. While it’s enlightening to gauge how your savings stack up in relation to your peers, a more profound truth lies beyond the numbers and statistics. But first, it’s time to answer the question that’s probably on your mind right now…
How much does the average American have in their savings account?
Before we dive into the specifics of average savings account balances, keep in mind that the U.S.’s overall economic landscape is ever-changing, thanks to inflation rates, job market stability, and interest rates. Plus, there are plenty of other factors that influence individual savings habits, such as age, personal (or household) income, whether you contribute to funds like a 401K or an IRA, and even your overall financial goals. (The savings patterns of a recent college grad differ significantly from those of a teacher who’s on the brink of retirement.)
With that in mind, here’s the mean (or average) amount that individual Americans have saved by age bracket, according to the Federal Reserve’s most recent 2019 data:
- Under age 35: $11,250
- Age 35-44: $27,910
- Age 45-54: $48,200
- Age 55-64: $57,670
- Age 65-74: $60,410
- Age 75 and up: $55,320
For comparison, here’s the mean average net worth for individuals using the same data set:
- Under age 35: $76,340
- Age 35-44: $437,770
- Age 45-54: $833,790
- Age 55-64: $1,176,520
- Age 65-74: $1,215,920
- Age 75 and up: $958,450
While those in the 65-74 age group often have a bit more tucked away in their savings accounts, when you look at their entire financial picture, you get a much richer understanding of their financial health. After all, savings are just one piece of the money puzzle, especially when you consider that assets like retirement accounts, stocks, or real estate are also contributing to overall financial well-being.
Where do you stand?
Whether you find yourself ahead of the savings curve, on track, or slightly behind, the key to money independence in the long run ultimately lies in your ability to understand and navigate the world of personal finance. And there’s no better time than Capital One’s National Savings Day, celebrated annually on October 12th, to sharpen up your financial literacy skill set.
“At Capital One, we view financial health as critical preventative care,” says Adam Davis, Vice President, Financial Health, Inclusion and Liquidity at Capital One. “We aim to help customers diagnose financial issues and find solutions — especially better ways to save — before they become a bigger problem.”
Your financial wellness isn’t solely determined by the sum of your savings or assets at a particular age. Instead, feeling good about your fiscal matters hinges on your understanding of how to manage and make informed decisions about your money, today and for your future.
Ways you can start saving more today
“There are two simple ways you can find and set aside money to put towards your savings goal,” says Davis. “One is to take a look at what unnecessary fees you’re paying and determine where you can save. You can also set up an automatic savings plan from your checking account to your savings account.”
Setting up an automatic transfer from your checking to your savings when your paycheck hits is a smart strategy in more ways than one: It keeps you from spending every dime you make, and ensures you’re regularly saving. And if you opt for a high-yield savings account — look for one with at least four percent APY — your money can really start to grow (thanks to the miracle of interest). In the end, hassle-free saving is a smart way to play the finance game.
Take a free online course to boost your money mindset
Does all of this info have you wishing you’d been a college finance major? Lucky for you, it’s never too late to sharpen your money skills. If you find yourself overwhelmed by financial discussions, worried about your retirement savings, or just looking to revamp your monthly budgeting, there’s an easy way to get info: Capital One has joined forces with online education hub Khan Academy, to develop a free Financial Literacy course consisting of deep dives on 11 different key topics.
You’ll be able to decipher what your credit score means, learn how to estate-plan or access various loan types, and get a peek into the world of investing. The best part? As long as you’re connected to Wi-Fi or have phone service, you can access these courses for free anytime, anywhere, and learn at your own pace.
“Khan Academy is excited that our partnership with Capital One is making it possible for us to offer free tools and resources to help people make better financial decisions,” says Director of Content at Khan Academy, Dave Travis. “Learners of all ages can help set themselves up for more prosperous, healthier, and happier lives.”
To learn more about how you can jumpstart your savings journey with Capital One, click here.
