What Percentage of Americans Have Zero Savings in 2025? (20 Shocking Stats)
Over a quarter of Americans have absolutely nothing saved. No emergency fund and backup plan. Just one unexpected bill away from financial freefall. In a country with rising living costs and shrinking wage power, this is a national crisis.
In this article, we’ll examine the latest numbers on savings (or lack thereof). Take a closer look at what percentage of Americans have zero savings, who are most affected, and why so many are stuck at zero.
Let’s unpack the truth behind America’s savings gap and what it means for the future.
Editor’s Choice
- 27% of Americans now have zero emergency savings.
- 34% of Millennials have no emergency savings, and nearly half had to dip into what little they had to afford basic expenses.
- Nearly half of low-income Americans (earning under $50K) have no savings.
- Despite a 3.5% rise in wages, essentials like rent, healthcare, and food are rising faster. This leaves 65% of Americans saying they simply can’t afford to save.
- Financial stress is linked to anxiety, depression, and physical illness.
How Many Americans Have Zero Savings?
As of 2025, 27% of US adults have no emergency savings. This is the highest level ever recorded by Bankrate, exposing a sharp rise in financial fragility across the country.
Only 41% of Americans could cover a $1,000 emergency with savings. This figure is the lowest since 2021, down from 44% in 2024, signaling growing reliance on credit, loans, or borrowing to handle surprise expenses.
Historical Trends: Percentage of Americans with Zero Emergency Savings
| Year | % With Zero Savings |
| 2015 | 22% |
| 2020 | 25% |
| 2023 | 24% |
| 2024 | 26% |
| 2025 | 27% |
The gradual increase over the past decade underscores the growing financial fragility among US households, emphasizing the need for improved savings habits and financial literacy.
US Savings by Demographic
Savings habits in America are anything but uniform. They shift dramatically by age, income, race, and job type. While some groups grow their nest eggs, others struggle to save a dime.
Who’s winning the savings game, and who’s falling behind? In this section, we break down the numbers by demographic to reveal who’s thriving, who’s at risk, and what it all says about financial stability nationwide.
1. 29% of Gen Z adults have no emergency savings.
(Bankrate)
Gen Z may be digitally savvy, but their savings habits are still a work in progress. Nearly 3 in 10 Gen Z adults (ages 18–28) report having no emergency savings at all, while 44% say they have less than three months’ worth of expenses saved.
This age group is juggling rising rents, student loans, and a job market still shaped by pandemic-era disruptions. While some are picking up side hustles or turning to fintech tools to manage their money, the reality is clear: most are not financially prepared for an emergency.
The good news is that Gen Z is more open than previous generations to talking about money, budgeting apps, and learning financial skills early. But the data shows they’re still just getting started.
2. Millennials struggle most with emergency savings.
(Bankrate)
Millennials (now aged 29 to 44) are facing a tough financial reality. Bankrate’s survey reveals that 34% of millennials have no emergency savings, the highest among all generations. Even those who do are struggling: 42% dipped into their savings last year to cover basics like rent, groceries, and utilities.
The financial strain is further evidenced by the fact that only 32% of millennials say they could cover a $1,000 emergency expense from savings, compared to 42% of Gen Xers and 59% of baby boomers.
3. 66% of Gen X feel anxious about having no emergency savings.
(Bankrate)
A staggering 31% of Gen Xers (ages 45–60) have no emergency savings, and 66% feel uneasy about what little they’ve set aside. That’s the highest anxiety level of any generation.
As the “sandwich generation,” many are squeezed between caring for aging parents and supporting kids while also preparing for retirement. The pressure is real: 38% dipped into emergency funds last year just to cover essentials like healthcare, housing, and groceries.
4. 59% of Baby Boomers could cover a $1,000 emergency with savings.
(Bankrate)
Baby Boomers (ages 61–79) are the most financially prepared generation when it comes to emergency savings. 59% of Baby Boomers say they could cover a $1,000 emergency expense using their savings, surpassing Gen X (42%), Millennials (32%), and Gen Z (28%).
Decades of disciplined saving, rising home equity, and a culture of fiscal responsibility have helped many Baby Boomers stay financially prepared. Still, the cracks are showing. About 1 in 3 dipped into emergency savings last year just to cover basics like healthcare, housing, and everyday expenses.
Despite having more savings, 66% of Baby Boomers still feel behind on emergency funds. With rising healthcare costs and market uncertainty, a strong emergency fund is essential as they navigate retirement.
5. Nearly half of low-income Americans have no emergency savings.
(Bankrate)
Income shapes financial security. 46% of Americans making under $50,000 have no emergency savings. In sharp contrast, just 7% of those earning $100,000 or more report the same.
The gap goes beyond dollars. It’s about peace of mind. While 56% of high earners feel confident in their emergency funds, many low-income households continue to face financial uncertainty.
6. 72% of Black households lack $400 in liquid savings.
(BlackRock)
Racial gaps in emergency savings are still glaring in 2025. A BlackRock report uncovered that 72% of Black households can’t cover a $400 emergency, nearly double the national rate. The disparity is not just about income. It’s about access to financial tools and opportunities for economic stability.
Black Americans are more likely to be unbanked, denied credit, and pressured to tap into retirement savings early due to persistent financial stress. This is reflected in savings data as only 42% of Black adults have three months’ worth of savings, compared to 59% of white adults.
7. 57% of US workers feel behind on emergency savings.
(Bankrate)
Employment status has a big impact on financial readiness. Bankrate’s 2025 Retirement Savings Survey highlights that 57% of American workers—full-time, part-time, and even temporarily unemployed—say they’re behind on emergency savings.
No job is bulletproof. Gig workers and part-timers face irregular incomes and few benefits. But full-timers are not safe either, with rising costs and flat wages gutting their savings.
Americans With Less Than $1,000 in Savings
Having zero savings is alarming, but having just a little more isn’t much better. For millions of Americans, even a single emergency could wipe out what little cushion they have.
In this section, we’ll look at those who fall just above the zero line: the people with less than $1,000 saved. It’s a group that represents those who are technically not broke but nowhere near financially secure.
8. 59% of Americans can't cover a $1,000 emergency with savings.
(Bankrate)
In 2025, 59% of Americans are unable to cover a $1,000 emergency expense using their savings. This marks a decline from 44% in 2024 and is the lowest percentage since 2021, when it was 39%.
Instead of tapping into savings, many Americans would resort to alternative methods:
9. More than half of Americans live paycheck to paycheck.
(LendEDU)
In 2025, 53% of Americans say they’re living paycheck to paycheck. This means that over half the population has little to no financial buffer. The issue spans across income levels:
- 72.8% of those earning under $50,000 annually live paycheck to paycheck.
- 44% of individuals with incomes between $50,000 and $99,999 report the same.
- Even among those earning over $100,000, 32.3% find themselves in this cycle.
No matter the income, building a financial safety net remains out of reach for millions.
Why So Many Americans Have No Savings
More than bad habits, a storm of economic pressure is keeping Americans from saving. Wages haven’t kept up. Rent has exploded. Everyday expenses now feel anything but ordinary.
If you’ve ever wondered why saving feels harder than ever, the numbers speak for themselves. Here are some of the real reasons behind the savings shortfall.
10. Cost of living rose 2.4% while essential expenses outpaced wage gains.
(BLS)
In 2025, the squeeze on American wallets tightens. While wages rose 3.5% over the past year, inflation moved faster. The Consumer Price Index climbed 2.4%, according to the Bureau of Labor Statistics. Essentials like housing jumped even higher, with shelter index like rent surging 4.0%.
In addition, the sting of new tariffs is expected to hike prices by another 1.7% and drain an extra $2,800 a year from the average household. On paper, paychecks are growing. However, the reality is that Americans are falling behind.
11. 65% of Americans say rising living costs make saving impossible.
(CNBC)
The relentless rise of everyday expenses are also holding people back from saving. 65% of Americans admit they can’t save money because the cost of living eats up their income. And in many cities, that pressure is hitting harder than ever.
In Menlo Park, California, rents have surged by 40% year-over-year. The median one-bedroom apartment now costs $3,360. Meanwhile, in San Antonio, Texas, renters must earn at least $58,590 annually just to afford a typical apartment. That figure is up 19% in just five years.
Add in rising food prices, healthcare bills, and transportation costs, and there’s little left to set aside. For many households, saving isn’t a decision. It’s a casualty of inflation.
12. The average US credit card debt hit $7,321 in 2025.
(LendingTree)
Debt is devouring savings. In 2025, the average US household with credit card debt owes $7,321. This is up nearly 6% from last year. Sky-high interest rates mean monthly payments swallow any chance to save.
Then comes student debt. The average federal loan balance is $38,375, with total federal debt topping $1.69 trillion. Repayments are back, and more than 1 in 5 borrowers are already 90+ days behind.
13. 12% of Americans borrowed $74 billion for medical bills in 2024.
(Gallup, Bankrate)
Healthcare is just expensive, and it’s becoming a debt trap. In 2024, 12% of US adults or about 31 million people borrowed money to pay for medical bills. That totals to around $74 billion.
Even with insurance, out-of-pocket costs are rising. The average annual out-of-pocket healthcare expense for employees is over $1,100. These expenses can quickly deplete emergency funds, leaving individuals financially vulnerable.
Medical debt is affecting financial stability, significantly. According to a KFF poll, 41% of adults have healthcare debt. This forces many to cut spending on essentials, drain savings, or take on more debt.
14. 37% of Gen Z Americans are financially literate.
(TIAA Institute-GFLEC)
Financial literacy is more than just a buzzword. It’s a barrier to savings. Only 37% of Gen Z Americans are financially literate, the lowest of any generation, as per the TIAA Institute-GFLEC Index. Without basic skills in budgeting, saving, and investing, many are flying blind with their finances.
The price? In 2023, nearly 9% of Americans said financial illiteracy set them back over $10,000.
However, things are starting to change. As of 2025, 27 states now require financial literacy for high school graduation. 16 of them through a dedicated personal finance course. This is a critical step toward letting young Americans build a more financially secure future.
The Impact of Having Zero Savings
Zero savings is risking everything. One unexpected bill can trigger a domino effect: missed payments, rising debt, damaged credit, and long-term financial instability.
In this section, we’ll explore what happens when there’s no financial buffer. From mental stress to lost opportunities, the cost of having nothing set aside is higher than most people think.
15. Financial stress is linked to increased anxiety, depression, and physical illness.
(TIME)
Living without savings is dangerous. A 2024 TIME report shows chronic money stress doesn’t just weigh on your mind; it wrecks your body. Think anxiety, depression, heart disease, high blood pressure, and even early death.
Financial strain sparks inflammation, weakens your immune system, and fuels unhealthy habits. It’s not just a low-income problem. Money anxiety hits all income levels. Without a safety net, small setbacks can spiral into full-blown health crises.
16. 25% of Americans delay medical care due to cost, even in emergencies.
(KFF)
When you have no savings, an emergency doesn’t just hurt. It spirals. According to KFF, 1 in 4 Americans say they’ve delayed or skipped medical care in the past year due to cost, even when it was urgent.
The risk isn’t just to your health. It’s to your whole life. Without savings, one surprise (like a job loss or car repair) can spiral into missed rent, unpaid bills, and wrecked credit. Worse, 58% of people with medical debt hear from debt collectors, fueling a vicious cycle of stress and financial chaos.
17. 80% of older Americans are financially struggling or at risk in retirement.
(NCOA)
The absence of savings has profound long-term consequences. According to the National Council on Aging, 80% of older adults are already struggling or at risk of economic insecurity in retirement.
Without savings, many older Americans are forced to rely on Social Security alone, which is often not enough to cover even the basics. The result? Tough trade-offs between housing, healthcare, and daily needs. And with no cushion for emergencies, debt piles up fast.
Emergency Fund Statistics
Emergency funds are the financial equivalent of a parachute. Most people know they need one, but far too many are free-falling without it. Financial experts recommend saving three to six months of expenses, but the reality looks very different.
In this section, we’ll look at how many Americans actually have emergency funds, how much they've saved, and who’s flying blind when the unexpected hits.
18. Only 44% of Americans have 3–6 months of emergency savings, while 27% have none at all.
(Bankrate)
Despite financial experts recommending that individuals maintain an emergency fund covering 3-6 months of living expenses, only 44% of Americans have achieved this. This stat highlights just how close many people are to financial crisis. One unexpected bill, car repair, or job loss could tip everything.
The data reveals that 28% of Americans have enough savings to cover six months of expenses, while 16% have saved enough for three to five months. Conversely, 27% of US adults have no emergency savings at all, and 29% have less than three months' worth of expenses saved.
19. One in five Americans takes over six months to recover from a financial shock.
(Pew Charitable Trusts)
Job loss, medical emergencies, major car repairs, or other financial shocks can derail even the most carefully planned budgets. Among those who experienced a destabilizing financial event, 19% reported that it took them more than six months to recover financially.
In comparison, 33% recovered within a month and 48% within a few months. Recovery time often comes down to one thing: emergency savings. Without it, people are forced into high-interest debt, put off essentials, raid retirement funds, and fall into other traps that prolong financial instability.
Historical Comparison: Has It Always Been This Bad?
It’s easy to think the savings crisis is a post-pandemic phenomenon, but the truth runs deeper. Americans have struggled with saving for decades, but inflation spikes, housing costs, and student debt have widened the gap.
In this section, we’ll look back over the past 10 to 15 years to see how savings habits have evolved—and why today’s numbers might be the most alarming yet.
20. The share of Americans unable to cover a $1,000 emergency has grown from 41% to 59% since 2020.
(Federal Reserve, Bankrate, and Consumer Federation of America)
Over the past 15 years, Americans' emergency savings habits have fluctuated significantly, influenced by economic events such as the Great Recession, the COVID-19 pandemic, and recent inflationary pressures.
| Year | % with 3+ Months of Emergency Savings | % Unable to Cover $1,000 Emergency |
| 2008 | 39% | 57% |
| 2020 | 59% | 41% |
| 2023 | 54% | 57% |
| 2025 | 44% | 59% |
In 2008, during the Great Recession, only 39% of Americans had enough savings to cover three months of expenses. 57% couldn't handle a $1,000 emergency during that time. By 2020, pandemic-era stimulus and reduced spending boosted savings. 59% had adequate emergency funds and only 41% lacked $1,000 cushion.
However, inflation reversed those gains. By 2025, only 44% had adequate savings, and 59% were again unprepared for a $1,000 hit.
Tips & Tools to Start Saving with $0
Saving money sounds impossible when your bank account is already gasping for air, but it’s not. Even with zero in the bank, there are ways to start building a safety net without overhauling your entire life.
Below are real strategies that can help you start small, stay consistent, and actually make progress even if you’re starting from nothing.
Tip 1: Start With a No-Frills Budget
Before saving anything, you need to know where your money is going. A simple 50/30/20 budget can help:
Can’t hit 20% yet? That’s okay. You can sttart with 1% or even just $5 a week. The goal is consistency, not perfection.
| Pro-Tip Start by tracking your spending for one month. You might be surprised where your money’s going: $200 on takeout, $60 on subscriptions you forgot you had, and $100 on impulse buys. Awareness is power. Even if all you can save is $5 a week, that’s a starting line, not a failure. |
Tip 2: Automate the Habit of Saving
Besides discipline, you need automation. Setting up a recurring transfer of $5, $10, or $25 from checking to savings every payday turns saving into a background task.
Apps like Chime, Ally, or Capital One 360 let you schedule automatic savings, and many offer tools to split your paycheck into categories the moment it lands. If your income is irregular, sync your transfers to when money comes in. The goal is to make saving the default, not the leftover.
Tip 3: Use the "Round-Up" Rule
This one’s for people who swear they “can’t afford to save.” Round-up apps like Acorns, Qapital, or Revolut can take your spare change from daily purchases and funnel it into a savings or investment account.
Buy a $2.60 coffee? It rounds up to $3.00 and moves the extra $0.40 to your savings automatically. It’s passive, painless, and surprisingly effective. Some users save $30 to $50 per month without ever noticing.
Tip 4: Audit and Cancel Subscriptions
Subscription creep is real. One minute, you’re watching one streaming service. The next, you’re paying for five. Use tools like Rocket Money or Trim to scan your accounts and identify recurring charges you may have forgotten.
Cancel the ones you don’t use and redirect that money into savings. If you cancel a $15 subscription, transfer $15 to your emergency fund every month instead. You were living without it before. Now, let it work for you.
Tip 5: Turn Windfalls Into Safety Nets
Tax refund? Birthday money? Side gig income? Events like these are opportunities to boost your savings without cutting into your monthly budget.
Set a rule for yourself: Save 10% to 50% of any windfall, no matter how small. For example, if you got a $200 tax refund, park $50 in a high-yield savings account. These windfalls might be irregular, but they can create the biggest jumps in your savings momentum.
Conclusion
Having zero savings is a warning sign. it’s affecting millions of Americans across every age, income, and background. Whether it’s due to rising costs, debt, or lack of access, the result is the same. The nation is one unexpected expense away from crisis.
However, this isn’t where the story has to end. Building savings does not demand perfection. It requires a starting point. Even $5 a week can shift momentum. With the right tools, habits, and mindset, a safety net is within reach.
Let the numbers above be the push to take action. The best time to start saving was yesterday. The second-best? Right now.
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