New year, new resolutions — and “save more money” is always at the top of the list. But new data from The Penny Hoarder’s State of Savings Report shows that for most Americans, saving still feels out of reach, with one in three holding less than $500 in savings. Based on responses from 1,250 working Americans, the report highlights the lingering financial strain of inflation.
Key findings:
- 63% of Americans do not have a savings account
- Only 37% of working Americans have a savings account; half have just $1,000 saved, and one in three have less than $500.
- 58% live paycheck to paycheck; 50% need two incomes to cover bills.
- 45% have drained their savings; 11% have done so multiple times.
- 20% admit they don’t handle financial setbacks well.
- $85K in average annual expenses vs. $62K median income — a math gap that makes saving nearly impossible.
- 29% rely on credit for big purchases; 1 in 10 haven’t checked their credit score.
Most Americans know how to save — they just can’t afford to. Despite learning good habits growing up, rising costs and stagnant wages have turned everyday budgeting into survival mode — widening the gap between financial literacy and financial reality.
Check out the full report here: https://www.thepennyhoarder.com/save-money/state-of-savings/
To help Americans move from surviving to saving, The Penny Hoarder launched Project Piggy Bank — giving one person $1,000 to kick-start their emergency fund. Anyone can apply here.
