Two-thirds of Americans report falling behind on their savings goals while nearly half believe they’ll never catch up, revealing a widespread financial struggle that crosses generational lines.
At a Glance
- 67% of Americans feel behind on their savings goals, with 47% believing they will never catch up
- 63% of Americans with savings have withdrawn funds this year, with one in five doing so five or more times
- The average American saves about $496 monthly, but 30% save $200 or less
- Generational differences exist: Gen X reports decreased savings while Gen Z reports increases
- Experts suggest online banks may offer better rates and benefits for building savings
The Savings Crisis Affecting Most Americans
A new survey reveals the extent of America’s savings challenge: approximately two-thirds of Americans (67%) feel they’re behind on their savings goals. More concerning, nearly half (47%) believe they will never catch up. This financial struggle cuts across all age groups but affects generations differently. The findings come from research commissioned by consumer banking app Current for National Financial Literacy Month, surveying 2,000 Americans evenly split by generation between March 28 and April 2, 2025.
“Americans are demonstrating incredible resilience and commitment to saving, even in challenging times,” said Erin Bruehl from Current in the survey report.
The data shows many Americans are actively trying to save but face significant obstacles. The average person manages to set aside approximately $496 per month, yet 30% can only save $200 or less. Additionally, 25% of respondents reported having less money in savings now than at the start of 2025, highlighting how difficult maintaining savings has become for many households.
Why Americans Are Dipping Into Their Savings
The survey found that 63% of Americans with savings have withdrawn funds this year, with nearly one in five doing so five or more times. The most common reasons include unexpected expenses, everyday purchases, emergencies, and housing costs like rent or mortgage payments. Only 18% reported withdrawing money for something they were specifically saving for, suggesting most withdrawals are reactive rather than planned.
“Over 60 percent of people have needed to use their savings this year, highlighting exactly why Americans are smart to try and build this financial cushion. Their savings are successfully serving their intended purpose — helping navigate both unexpected costs and ensuring they can maintain their essential needs,” noted Erin Bruehl.
This perspective reframes the use of savings not as a failure but as the system working as intended. Savings accounts exist precisely to help manage unexpected expenses and life emergencies. However, the frequency with which Americans are accessing these funds may indicate deeper financial pressures from rising costs of living and economic uncertainties.
Generational Differences in Savings Habits
The research revealed significant variations in savings patterns across generations. Gen X respondents were most likely to report decreased savings, suggesting this middle-aged group may be facing particular financial pressures. Conversely, Gen Z reported the highest likelihood of increased savings, perhaps reflecting their earlier career stage with fewer financial responsibilities like mortgages or supporting families.
Banking relationships also showed generational divides. About 71% of Gen Z respondents find their bank helpful in reaching savings goals, significantly higher than other age groups. Additionally, 52% of Gen Z believe they could get better service from another bank, and 45% are willing to switch banks—indicating this younger generation may be more proactive about optimizing their financial services.
Solutions for Building Better Savings
Financial experts suggest several strategies to improve savings outcomes. Setting small, achievable goals rather than overwhelming targets can build momentum. Automating transfers to savings accounts removes the temptation to spend before saving. Cutting everyday expenses, even small ones, can free up surprising amounts for savings. Most importantly, consistency matters more than amount—regular small deposits build more savings than occasional large ones.
“Americans should select financial institutions that help them reach their goals. Online or mobile-only solutions often offer higher savings rates than traditional banks without monthly or minimum balance fees and provide additional benefits like early paycheck access and fee-free overdraft protection that provide additional cushion when bills are due. These benefits put more money in consumers’ pockets and can help people achieve their goals faster,” advised Erin Bruehl.
Banking choices can significantly impact savings success. Online or mobile-only banks frequently offer better interest rates on savings accounts and fewer fees than traditional brick-and-mortar institutions. Features like early paycheck access, automated savings tools, and fee-free overdraft protection can help consumers keep more of their money while building savings more efficiently.
