What's more, 34% have no savings at all.
Overspending might play a role in young adults’ low savings rate. A survey by TD Ameritrade found more than nine in 10 millennials overspend, fall short on savings or take on additional debt at least once a month per year.
One reason could be because they feel pressured to develop certain spending habits. For example, the survey found 52 percent of millennials feel pressure to keep up with their friends due to always going out, and 46 percent feel the pressure because of social media posts.
“The sharing of information is so accessible to people today through social media, videos and photos that it has caused people to try and keep up with those in higher income brackets when they have no right to,” said Hayes. “This common in-your-face knowledge of what everyone else is buying, making and doing creates unnecessary stress and urgency to keep up with people financially, instead of focusing on establishing proper savings habits for your family.”
Low-Income Adults Struggle the Most With Saving MoneyThe GOBankingRates survey found that lower-income adults are the least likely to have money in savings. Of those earning less than $25,000, 38 percent have $0 in savings and another 35 percent have less than $1,000 saved. The percentages are nearly identical for those earning $25,000 to $49,999.
In contrast, just 6 percent of respondents with incomes of $150,000 or higher have nothing in savings, and only 23 percent have less than $1,000 saved. And, nearly 40 percent of those in that income bracket said they have $10,000 or more in savings.
It makes sense why saving money is harder for people with smaller incomes, especially if the cost of living is high in their city. In fact, depending on your city, you’ll need a larger income to live comfortably, found a recent GOBankingRates study.
Many people use the 50-30-20 budgeting rule to budget their paycheck. Using this method, half of your paycheck should cover your necessities, 30 percent should go to discretionary purchases and 20 percent should go toward savings.
Reference:
http://www.cnbc.com/2016/10/03/how-much-americans-at-every-age-have-in-their-savings-accounts.html
https://www.fool.com/investing/2016/09/25/how-much-does-the-average-american-have-in-their-s.aspx
https://www.gobankingrates.com/personal-finance/data-americans-savings/
https://www.creditdonkey.com/average-american-savings-statistics.html
http://www.cheatsheet.com/money-career/average-american-bank-account.html/?a=viewall
http://www.marketwatch.com/story/most-americans-have-less-than-1000-in-savings-2015-10-06
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