Here’s what Federal Reserve data shows about typical bank balances for those ages 18–34—and how to think about the numbers.
Key Takeaways
- Median bank balances for Americans under 35 have risen steadily over the past decade, even as many are early in their careers.
- Comparing yourself to averages can be misleading, so savings guidelines often matter more than hitting a specific dollar number.
- Earning higher interest can help savings grow faster, whether through today’s best high-yield savings accounts or top CDs.
How Much the Average American Under 35 Has in the Bank
If you can save, you might wonder how your bank balance compares with others your age. While savings vary widely by income, expenses, and life stage, balances generally rise over time as people spend more years in the workforce.
Federal Reserve data from 2022 shows that Americans under 35 had a median of $5,400 in bank transaction accounts, which include checking and savings accounts. For comparison, people ages 35 to 44 had a median balance of $8,700.
That gap isn’t surprising. Many younger adults are still early in their careers and may be juggling student loans, housing costs, or growing families.
Even so, being young hasn’t been a disadvantage when it comes to saving trends. Over the past decade, Americans under 35 are the only age group whose median bank balances increased at every three-year checkpoint tracked by the Federal Reserve. That steady upward movement suggests many younger savers are building momentum over time, even if their balances are still relatively modest.
| Median Bank Account Balances by Age | ||||||
|---|---|---|---|---|---|---|
| Under 35 | 35-44 | 45-54 | 55-64 | 65-74 | 75 or older | |
| 2013 | $2,800 | $4,840 | $5,090 | $6,360 | $8,910 | $8,910 |
| 2016 | $3,150 | $4,690 | $5,010 | $6,620 | $9,870 | $12,330 |
| 2019 | $3,760 | $5,460 | $7,420 | $6,520 | $9,270 | $10,780 |
| 2022 | $5,400 | $7,500 | $8,700 | $8,000 | $13,400 | $10,000 |
Regardless of the numbers, it’s important to remember that there’s no universally “right” amount to have saved at any age.
“Don’t compare yourself to others,” said Chloé Moore, certified financial planner (CFP) and founder of Financial Staples, a financial planning and investment management firm. “Just focus on yourself and make sure that you set good, intentional goals and that you work toward achieving those goals.”
Many Young Adults Are Saving Beyond the Bank
Bank balances aren’t the whole picture. According to Federal Reserve data, roughly 50% of Americans under 35 hold a retirement account, such as a 401(k) or IRA.
Savings Guidelines to Consider Before Hitting 35
Rather than focusing on a specific dollar amount, some financial planners suggest using savings guidelines—especially early in your career, when income and expenses can change quickly.
Moore often recommends saving enough to cover at least six months of take-home pay for an emergency fund. Still, she stresses that the right target depends on your personal situation, including job stability, family responsibilities, and access to credit.
To figure out what makes sense for you, it can help to start by tracking your income and expenses for a few months. That can show where your money is going and highlight areas where you may be able to save more. A financial advisor can also help you set a realistic goal and build a plan to reach it.
Instead of pushing clients to hit a fixed number by a certain age, Moore focuses on habits and flexibility—especially for younger savers, including many first-generation wealth builders.
She offers a few practical ways to strengthen your savings habit:
- Start small: If saving six or 12 months of expenses sounds intimidating, she said, begin by aiming for one month. “Review your cash flow and see if there are places where you can save a little bit more each month,” Moore said.
- Look for ways to add income: If cutting expenses isn’t realistic, Moore suggests selling items you no longer need or exploring a side hustle to bring in extra cash.
- Have a plan for extra money: Whether it’s a tax refund, bonus, or unexpected windfall, decide in advance how you’ll use it. “Try to have a plan for those before you receive them and not just think of it as free money you can spend,” Moore said.
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Accounts That Can Help Your Savings Grow Faster
You can grow your savings faster by choosing accounts that earn interest, such as high-yield savings accounts and CDs.
For money you want to keep flexible, compare today’s best high-yield savings accounts. In addition to stronger rates—many paying 10–12 times the national average—some accounts include features that make it easier to manage your money and stay organized.
One feature Moore likes is the ability to earmark savings for different goals: “Some accounts let you set up an emergency fund bucket or a travel bucket or a down payment bucket,” Moore said.
Have money you won’t need right away? Today’s best CDs can be a good additional option. CDs typically offer higher rates than savings accounts in exchange for leaving your money untouched for a set period of time—usually ranging from 3 months to 5 years. The tradeoff is that withdrawing funds early usually triggers an early withdrawal penalty.
You Don’t Have to Choose Just One Account
Keeping some of your cash in a high-yield savings account can make it easier to handle unexpected expenses, while money set aside in a CD keeps earning a guaranteed rate until it matures. Using both accounts balances flexibility with higher returns and can help you avoid penalties from withdrawing CD funds early.