Saving money is key to financial stability, but for many Americans, building a cushion feels harder than ever. As the cost of living keeps on climbing, are Americans even able to save?
To better understand how people are managing their money in 2025, Credible surveyed Americans nationwide about their savings habits, financial worries, and the challenges they face.
2 in 3 Americans don't think they'll ever feel financially secure
Whether it's the rising cost of living or mounting debt, many Americans are struggling to put money aside, and for most, the goal of financial security feels out of reach. Our survey found 2 in 3 Americans don't believe they'll ever save enough to feel financially secure, and 1 in 5 had $0 in their savings account at some point in the last six months.
It's a struggle the younger generations are especially feeling, with 89% of those surveyed believing that saving money is harder today than it was for past generations. In fact, 1 in 5 Americans report they couldn't cover a $500 emergency expense today. Broken down by generation, 29% of Generation Z couldn't afford an unexpected $500 bill, compared to 20% of millennials, 19% of Generation X, and 12% of baby boomers.
More than half of Americans (53%) withdrew money from savings in the past year, with the average withdrawal totaling $2,900. At the same time, 44% cut back on contributions this year just to keep up with daily expenses. Some are forced into difficult trade-offs: 1 in 4 Americans went into debt in the past year to avoid depleting their savings, despite 23% of them being full-time workers.
Nearly a quarter of Americans (23%) admit they feel ashamed of their savings habits, and this lack of a safety net has real consequences. Many are unable to cover common emergencies.
Top emergencies Americans can't afford:
- Medical emergency: 52%
- Three months of living expenses: 41%
- Major car repair: 40%
- Unexpected travel: 34%
- Major appliance replacement: 33%
- Emergency child or elder care: 33%
More than a quarter of Americans use emergency funds on non-essentials
An emergency fund is money you set aside, typically three to six months' worth of expenses, in case of unexpected expenses. According to our survey, 37% of Americans don't have an emergency fund. By generation, 42% of Gen Z, 31% of millennials, 44% of Gen X, and 38% of baby boomers do not have an emergency fund. In general, 55% say the three- to six-month emergency fund “rule” is unrealistic.
Editor insight: “An emergency fund can help you avoid expensive debt when the unexpected happens. Start small and aim to set aside one month of expenses. If you're living paycheck to paycheck, closely examine your budget to find areas you can trim. And if you don't have a budget, make one. If too much of your paycheck is going toward existing debt, talk to a credit counselor about potential solutions to get your finances on track.”
— Meredith Mangan, Senior Loans Editor, Credible
Among the 63% who do have an emergency fund, the average balance is $18,500. While these savings are meant to be safety nets for emergencies, 27% of Americans admit to using their emergency savings for non-essentials. Gen Z is the generation most likely to do this at 32%. When broken down by gender, 33% of women vs. 22% of men spend their emergency funds on non-essentials.
Americans' savings outlooks and priorities in 2025
Over the next year, 65% of Americans expect their savings to grow, 13% think they will shrink, and 22% expect no change. The average American didn't start saving consistently until age 30.
Median savings account balances by generation:
- Gen Z: $3,400
- Millennials: $9,000
- Gen X: $9,600
- Baby boomers: $11,000
When it comes to where Americans keep their money, they use a mix of accounts: 56% keep some of their savings in checking accounts, 56% in standard savings accounts, 41% in stocks or investments, 40% in retirement accounts, and 39% in high-yield savings accounts. Nearly 2 in 5 (38%) automate their savings contributions.
Editor insight: “It's likely we'll see one or more interest rate cuts by the end of the year, which means yields on savings accounts will shrink. The surest way to grow your savings is to automate contributions from your checking account into your savings account on a monthly basis.”
— Meredith Mangan, Senior Loans Editor, Credible
When it comes to financial priorities, 52% of Americans are focused on building their savings, while 48% are prioritizing paying down debt. Gender differences are apparent: 53% of women are focusing on paying down debt, compared to 43% of men.
Methodology
In August 2025, we conducted a survey of 1,001 people from across the U.S. about their savings habits. Among respondents, 50% identified as male, 49% as female, and 1% non-binary. The average age of respondents was 43.
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Fair Use
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