How many Americans stick to a budget?
Nearly three-quarters of Americans (74%) have a monthly budget. Millennials are most likely to say this — 83%, versus 76% of Gen Zers, 74% of Gen Xers and 67% of baby boomers. Some Americans are willing to go without a budget.
You're Spending Too Much
An OppLoans survey showed that 73% of Americans don't have a budget that they regularly follow. Budgeting is one of the easiest ways to understand your finances and how much you spend each month. Plus, with so many tools like Empower or Mint.com, budgeting has never been easier.
Nearly one in three (30 percent) people in 2023 had some emergency savings, but not enough to cover three months of expenses. This is up from 27 percent of people in 2022. Nearly one in four (22 percent) U.S. adults said they have no emergency savings.
Two-fifths of Americans (40%) spend less than their income, 38% spend about equal to their income and 18% spend more than their income.
61% of U.S. adults don't even have a budget.
A slight majority of all Americans polled (54%) describe their household's financial situation as good, which is about the same as it's been for the last year but down from 63% in March of 2022.
About 29% of respondents have between $501 and $5,000 in their savings accounts, while the remaining 21% of Americans have $5,001 or more. Few hold much cash in their checking accounts as well. Of those surveyed, 60% report having $500 or less in their checking accounts, while only about 12% have $2,001 or more.
Most American households have at least $1,000 in checking or savings accounts. But only about 12% have more than $100,000 in checking and savings.
Statistics vary, but between 55 percent to 63 percent of Americans are likely living paycheck to paycheck.
In fact, statistically, around 10% of retirees have $1 million or more in savings.
What do Americans buy the most?
- Food at home: $4,464.
- Food away from home: $3,459.
- Apparel and services: $1,866.
- Vehicle purchases: $3,975.
- Gasoline, other fuels: $2,109.
- Personal care products and services: $768.
- Entertainment: $3,226.
You may need savings for different purposes at different life stages. According to the latest available Federal Reserve data, Americans have a median of $5,300 and an average of $41,800 in transaction accounts.
Annual household income in U.S. dollars | Percentage of U.S. households |
---|---|
50,000 to 74,999 | 16.2% |
75,000 to 99,999 | 12.3% |
100,000 to 149,999 | 16.4% |
150,000 to 199,999 | 9.2% |
Here's a breakdown of the most common reasons Americans don't make budgets: They don't think it's necessary: 27% They don't think they'll stick to it: 24% They don't feel like making one: 10%
According to the Fed's most recent Survey of Consumer Finances, the average transaction account balance was $62,410 in 2022. The median balance for transaction accounts, which may provide a more accurate picture of the average American, was $8,000.
Current Financial Situation. At the end of 2022, 73 percent of adults were doing at least okay financially, meaning they reported either "doing okay" financially (39 percent) or "living comfortably" (34 percent).
But our editorial integrity ensures our experts' opinions aren't influenced by compensation. Terms may apply to offers listed on this page. Census data shows that 4 in 10 Americans are finding it difficult to cover their expenses. If you aren't sure how to pay your bills, don't ignore the problem; make a plan.
More than half of Americans earning over $100,000 a year live paycheck to paycheck. So what's going on? Many experts point to a phenomenon called lifestyle inflation as one of the culprits. Lifestyle inflation, or lifestyle creep, is the pattern of spending a little more as a person's income increases.
Those living paycheck to paycheck devote their salaries predominantly to expenses. Living paycheck to paycheck may also mean living with limited or no savings and refer to people who are at greater financial risk if they were suddenly unemployed.
Other answers revealed that 15 percent had between $1,000 to $5,000, 10 percent with savings of $5,000 to $10,000, 13 percent boasted $10,000 to $20,000 of cash in their bank accounts while 20 percent had more than $20,000.
How many Americans have $10,000 saved?
More Than Half of Americans Have Less Than $10,000 Saved
According to the survey, 53% have less than $10,000 saved. Not far behind them is the 15% of Americans who have between $10,001 and $50,000 saved. Going up a little more, just 6% have between $100,001 and $200,000 saved.
More Than Half of Americans Have Less Than $10,000 Saved
Going up a little more, just 6% have between $100,001 and $200,000 saved. Few Americans have saved more than $300,000: 4% have between $350,001 and $500,000. 4% have saved between $500,001 and $750,000 and another 4%, have more than $750,000 saved.
Recent data from Northwestern Mutual shows that the average 30-something has $67,400 saved for retirement. So if you're sitting on a $100,000 savings balance at age 30, it means you're ahead of the game.
“By the time you hit 33 years old, you should have $100,000 saved somewhere,” he said, urging viewers that they can accomplish this goal. “Save 20 percent of your paycheck and let the market grow at 5% to 7% per year,” O'Leary said in the video.
Retiring with little to no money saved is not impossible, but it can present some challenges to your financial plan. Depending on where you're starting from, you may need to delay Social Security benefits, work longer, or drastically reduce expenses to retire with no money saved.
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