Recent studies show that the typical American has an average of $41,700 in their bank accounts. Now, whether you perceive that amount as high or low will depend on several factors, such as your income level and tax bracket.
Low-income earners might scoff at the thought of having that much money lying idle in their bank account. High-income earners will probably deem the figure feasible, if not too low.
Since it’s impossible to peep into the bank accounts of similarly aged people to ascertain if you’re on the right track, we’ve put that information together for you. So, what is the average bank account balance by age?
Of course, no two people are the same regardless of age. And how much you have in your bank account will largely depend on your lifestyle and spending habits.
Average Savings Accounts Balances By Age
As you can imagine, several factors can influence your bank balance when compared to your peers. Your income and spending habits also directly impact how much you can save.
But in this article, we’ll zone in on the age factor. It appears households composed of older individuals tend to have higher balances in their savings accounts. Rationally speaking, that would make sense since they have had more time to save and accumulate wealth.
The same can’t be said about the younger generation, who may still be bringing in lower incomes in relation to their living expenses. Plus, impulsive buying tends to haunt younger Americans when compared to their elders.
The latter have usually gained an understanding of the value of money as they grow older or at least the importance of putting aside money for unforeseen eventualities. Our research conveyed the following average savings balances broken up by age:
- Ages 18-34: $8,330.50
- Ages 34-44: $10,663.20
- Ages 45-54: $11,482.30
- Ages 55-64: $16,977.20
- Ages 65 + : $19,369.70
Average Checking Accounts Balances By Age
The average account balance in checking accounts also tends to vary with each age group. Much like the trend with savings accounts, the average account balances for older individuals are significantly higher than those of the younger generations.
However, the average balances in checking accounts tend to be lower than savings accounts’ balances. The logical explanation is that people tend to live off their checking accounts, using them for day-to-day expenses rather than saving. That’s largely because of the very little to non-existent interest rates. Based on our findings, the following average checking account balances were typical among the following age groups:
- Under 35: $4,013
- 35-44: $9,593
- 45-54: $10,337
- 55-64: $11,098
- 65-74: $15,752
- 75 + : $15,803
How To Beef Up Your Account Balance
Now that you have the stats, are you happy with your bank balance? If you feel like you’re falling behind, there are a few things you can do to bulk up your bank account.
You can start by drawing up a budget to have a clear record of where your money is going each month. Make cuts to unnecessary expenses where possible. Frivolous and impulsive buying tends to swallow the bulk of our earnings, particularly in the younger generation. So, it’s important to find out where you can cut on spending and set the extra amount away for savings where possible.
Open a rewards account in place of your checking account. As you know, most checking accounts offer meager interest rates, if any at all. By opening a rewards account, you receive rewards in the form of cashback or sizable interest on your deposits.
Another working strategy is to adopt a “set it and forget it” approach. In this case, you work with your bank to automate a recurring transfer of a specified amount each month from your checking account on payday. Transferring these funds into a high-yield wallet, such as Cashero, will ensure you earn the highest possible yields on the money you set aside, through stablecoins.
Conclusion
It’s near impossible to have a peek into your peers’ bank accounts. But sometimes you want to know if you’re on the right track with your bank balance when compared to your age group or if you’re falling behind.
Generally, the average bank account balances of Americans differs based on several factors, including age. And average balances tend to be much lower for the younger demographic when compared to older individuals. That’s because older people have had more time to accumulate savings. Plus, they may not have to deal with expenses such as rentals and falling prey to impulse purchases as is often the case with younger folk.
Either way, closely monitoring your spending habits will ensure you reach your financial milestones—young or old.
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As of the date of publication, the information contained on this page is deemed to be factually accurate for all terms of conditions, features, and fees. Changes made to Cashero’s terms of conditions, features, or fees after the publication of this content may not be accounted for.
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