This Is How Much Money Americans Saved Last Year
Last year, a survey conducted by Lending Club found that 60% of Americans live paycheck to paycheck. So, it is unsurprising that when we asked over 1,000 adults over the age of 18 how much they had saved in the past year, 26% responded they had not saved anything at all.
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As a matter of fact, over half (55%) of all respondents said that they had saved $1,000 or less over the past 12 months.
At GOBankingRates, we investigated whether this was common across all age groups or differed significantly by sex. Here is how much money Americans saved last year — and what you can do to bolster your emergency fund for 2024.
How Much Money Did Americans Save Last Year?
According to our survey, 12% of people saved over $10,000 last year. This means that, on average, they stashed $833 per month into their savings. Just under 10% said they saved between $5,001 and $10,000. Despite over half of Americans living paycheck to paycheck, many were able to save a substantial portion of their income each month.
Slightly more than 8% reported saving between $3,001 and $5,000, with more men reportedly stashing this much away compared to their female counterparts. Nearly 6% of people surveyed said they put away between $2,001 and $3,000 last year.
However, a surprising 64% of respondents replied that they saved $2,000 or less in the last year.
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Who Saved More: Men or Women?
Of those surveyed, men were better savers overall compared to women.
Over 21% of male respondents said they had saved between $3,001 and $10,000 over the last year. A whopping 15% stated that they had stashed away even more. Only 20% of men answered that they had saved $0 in the past year, compared to almost 30% of women.
Does Age Factor Into How Much You Save?
Age also factored into how much people saved over the past year, with people between the ages of 45 and 64 struggling to save the most. Almost 39% of respondents 55 to 64 years old stated that they had saved $0 last year, compared to less than 20% of those surveyed between the ages of 25 to 34.
While only 14% of Gen Zers reported saving $0 last year, 31% said they were only able to put away $500 or less. These young adults were also less likely to save large amounts of money, with just under 4% stating that they saved over $10,000 during the past year.
Boomers, 65 years and older, were more likely to save substantial chunks of money compared to younger generations. A commanding 18% said they saved $10,000 or more in the past year. Another 26% responded that they tucked away between $2,001 and $10,000.
How To Save More This Year
Saving money isn’t always easy, particularly if you are living paycheck to paycheck, but even putting away small amounts of money can add up over time. Experts generally recommend having an emergency fund of three to six months built up. Some argue that in times of economic uncertainty, it is better to have closer to nine months or a year in savings to prevent financial hardship in the event of a job loss or another change in circumstances.
The best way to get started saving is to create a detailed budget. Get all of your income and expenses written down. Separate your expenses into wants and needs, with necessary expenses including your housing, transportation and food costs. See where you can cut down on your discretionary spending (wants). This often includes getting rid of subscriptions and reducing the amount you spend on entertainment or going out to eat.
You can then start to set goals based on the amount of money you have pulled from your discretionary spending. Be sure to account for unexpected costs or even allow yourself to splurge once in a while on a non-essential.
Having some wiggle room can help you stay on track and meet your goals. Start small and build up to saving more each month.
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This article originally appeared on GOBankingRates.com: This Is How Much Money Americans Saved Last Year
