Savings: Quarter Of Americans Have Few, 1 In 10 Have None
A recent survey conducted by YouGov has shed light on the state of savings among Americans. The findings reveal that a significant portion of the population is lacking crucial savings needed for managing short-term emergencies and building long-term wealth.
According to the survey, conducted among a representative online sample of U.S. adults, 27 percent of Americans had savings below $1,000 as of May 2023. Furthermore, 12 percent reported having no savings at all.
Interestingly, the number of Americans with savings below $1,000 is comparable to the number of survey participants who volunteered information about having more than $1,000 in the bank. Of the respondents, 18 percent claimed to have savings ranging from at least $1,000 but under $10,000. Moreover, 11 percent each reported having savings between $10,000 and $49,999, as well as $50,000 or more. Notably, 17 percent of participants preferred not to disclose their savings status.
The survey also highlighted a significant gender disparity in savings. Women were found to be much less likely to have substantial savings compared to their male counterparts. This discrepancy can be attributed to a variety of factors, including lower average wages for women due to pay disparities, more frequent employment in low-paying or part-time positions, and the so-called motherhood penalty. The motherhood penalty refers to the missed wage increases and promotions that women often experience due to taking time off for child-rearing. Additionally, women in the U.S. carry a higher average student loan debt, which further affects their ability to save.
Marital status was another influential factor in savings accumulation. The survey revealed that married Americans were most likely to have significant savings, with 10 percent of them having saved $100,000 or more. In contrast, only 6 percent of widowed individuals, 4 percent of partnered individuals, and 3 percent of single individuals reported similar savings. The Institute for Family Studies attributes the higher wealth of married Americans to a correlation between high education status and stable marriages. Furthermore, marriages among the highly educated are more likely to involve two earners, which increases the likelihood of substantial savings.
Despite having the highest disposable incomes among OECD countries, Americans are not saving as much as their counterparts in other developed nations. In 2020, the United States ranked seventh in terms of total savings, but only fifteenth in savings rate. This suggests that even with ample opportunities, Americans are not prioritizing saving to the same extent.
It is worth noting that since the onset of the pandemic, U.S. savings rates have decreased further, indicating a concerning trend.
In conclusion, the YouGov survey provides valuable insights into the savings habits and financial well-being of Americans. The findings demonstrate that a significant portion of the population lacks sufficient savings, with women being disproportionately affected. Factors such as pay disparities, the motherhood penalty, and higher student loan debt contribute to this disparity. Additionally, marital status and education level play a role in savings accumulation. While Americans have high disposable incomes, they are not saving as much as citizens of other developed nations. This data underscores the need for improved financial literacy and a concerted effort to promote saving habits among the American population.
