Is Your Savings Account Balance Above Average? Here's A Look At The Surprisingly High Amount Of Cash Households Are Stashing Away

Ever wondered how your savings account balance stacks up against the average American household? You might be surprised to learn that the median savings balance is just $8,000, while the average is a hefty $62,410 (Federal Reserve, 2022). But averages can be deceiving, and the real question is: where do you fall on the savings spectrum?



Age, income, and household type all play a significant role in determining your savings balance. Younger individuals and those with lower incomes tend to have less saved, while older individuals and higher-income households have more substantial savings (Federal Reserve, 2022; Hargreaves Lansdown, 2025). Couples without children also tend to have higher savings balances, likely due to lower expenses (Hargreaves Lansdown, 2025).

But what about regional differences in financial resilience and pension adequacy? The Hargreaves Lansdown Savings & Resilience Barometer (2025) reveals stark variations across the UK. Pockets in and around London and the South East fare best, while the North East, North West, Scotland, and Wales see some of the lowest resilience scores. This regional disparity is also reflected in pension adequacy, with a gap of 24% between the richer South East pockets and less affluent London boroughs and North East England.



So, where do you stand? If your savings balance is above the median of $8,000, you're doing better than half of American households. But if you're still struggling to build your savings, don't despair. There are steps you can take to improve your financial situation.

First, set a budget to understand where your money goes each month. Then, trim expenses where you can, and shop around for better interest rates on your savings account. If you have high-interest debt, consider paying it off to free up more money for savings. And remember, every dollar saved is a step towards financial security.

In conclusion, while the average savings account balance may seem high, the median balance of $8,000 is a more realistic target for many households. Age, income, and household type all play a role in determining your savings balance, as do regional differences in financial resilience and pension adequacy. To improve your savings, set a budget, trim expenses, shop around for better interest rates, and consider paying off high-interest debt. Every dollar saved is a step towards financial security, so don't be discouraged if you're not yet at the average balance. Keep working towards your goals, and you'll be well on your way to a more secure financial future.