Comparing your financial progress to a national average isn’t about keeping up with the neighbors. It’s about understanding the landscape of American stability.
Whether you look at the money in your checking account or the long-term growth of a 401(k), the numbers tell a story of significant inequality. While some households have successfully replenished their reserves against inflation, much of the country still lives with very few buffers.
Here you can see the typical balances for different accounts.
1. Bank accounts
Average balance: $62,410
Median balance: $8,000
According to Bankrate, the typical American household is holding up about $8,000 on transaction accounts, including savings, checking and money market funds. This figure represents the median, which is often a more realistic criterion than the average.
The average balance is much higher because it is distorted by the fact that a small percentage of high-net-worth households hold large amounts of cash.
2. Retirement accounts for older workers
Median age 45-54: $67,796
Median age 55-64: $95,642
Retirement savings is a crucial measure of long-term financial health, and the difference between the “average” and the “median” is large in these age groups. For workers ages 45 to 54, the average balance is $188,643, but the median is much lower: $67,796.
The numbers increase significantly as retirement approaches. For people ages 55 to 64, the average rises to $271,320, while the average worker (median) owns about $95,642. This gap suggests that while many are saving, a significant portion of the workforce may need to catch up in their final working years.
3. Health savings accounts
Average balance: $3,997
Average for investors: more than $18,000
Health Savings Accounts (HSAs) have become a popular tool for both medical expenses and tax-advantaged investments. According to the latest sector reportsthe average balance across all accounts is $3,997.
Interestingly, many people use these accounts as a pass-through vehicle: they deposit money and immediately spend it on doctors. Only about 10% of account holders actually invest their HSA funds, but those who do have significantly higher balances, often exceeding $18,000.
4. Check accounts
Average check balance: $16,891
Median checking balance: $2,800
Current accounts are intended for liquidity, but the amounts held here are often lower than recommended. While the average is high for wealthy households, the average balance is for a typical American amounts to $2,800.
Low balances on these accounts increase the risk of overdrafts. While checking accounts don’t have to be overfull, keeping enough to cover a full month’s worth of expenses provides a necessary safety cushion.
5. Emergency funds
Population with three months’ savings: 55%
Population without savings: 19%
The gold standard for financial security is a fund that covers at least three to six months of living expenses. Recently, about 55% of adults reported that he had enough set aside for at least three months.
The remaining 45% are in a more precarious position. About 19% of American adults have no emergency savings at all, meaning any car repair or medical bill will likely have to be put on a credit card.
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