Before you feel behind on savings, check where the number came from

You may have seen a line saying that the typical person has $10,000 saved by their mid-twenties. If your own balance is small, or zero, that line can make you feel you are failing at something others manage. Some people who answered a question about this line pointed out that the figure is wrong.

Before you decide you are behind on savings, find out where the number you are comparing yourself to came from.

In a Federal Reserve survey for 2025, 62 percent of US adults said savings alone would not cover a $5,000 emergency.

This page is for someone with a small balance, or none, who feels ashamed of it. It is not for you if you cannot cover this month’s rent, food or bills. Saving is not the first step then, and “Who this page is not for” has numbers to call.

What the Federal Reserve’s surveys say

The Federal Reserve Board, part of the US central bank, runs a yearly survey of US adults about their money. Its report on 2025, published in May 2026, asked what the largest emergency expense was that people could pay right now using only savings. For all adults:

• under $100: 18 percent
• $100 to $499: 12 percent
• $500 to $999: 9 percent
• $1,000 to $1,999: 11 percent
• $2,000 to $4,999: 12 percent
• $5,000 or more: 38 percent

Add the first five and you get 62 percent who said under $5,000. Only 38 percent said savings alone could cover $5,000 or more. These are all adults, not only people in their twenties, and the tables this page read do not split this answer by age.

The same report asked about a $400 emergency. It found that 63 percent of adults said they would pay it using only cash, savings or a credit card paid off at the next statement. That leaves 37 percent who would not, and 12 percent of all adults said they could not pay it by any means.

It also asked who had set aside money for three months of expenses in an emergency fund. The Fed calls that one common measure of financial resilience. Overall, 55 percent said they had. Among adults 18 to 29, it was 37 percent, and among those 30 to 44, 49 percent. The share rises with family income: 21 percent below $25,000, 39 percent from $25,000 to $49,999, 55 percent from $50,000 to $99,999 and 75 percent at $100,000 or more.

In the UK, the Financial Conduct Authority’s Financial Lives survey of May 2024, published in May 2025, found that one in ten people had no cash savings at all and another 21 percent had less than £1,000 to draw on in an emergency. That adds up to almost a third of the people surveyed.

What people say about the number

Some people who answered a question about the $10,000 line pointed out that it is false, and that measuring yourself against it causes distress for no reason. Some suggest it may mix retirement accounts with cash. Some point out that an average can be pulled up by a few high earners. Some advise checking a figure against a source you can trace, not a summary. One person pointed out that a figure about bank savings accounts misses money kept elsewhere, and that a better measure is how many households could not pay an unexpected $400 bill, which is the question the Fed asks.

Some questions are worth putting to any number: who was asked, in which year, whether it counts cash only or retirement accounts too, and whether it is an average or a middle.

One person points out that some people with large savings had help the reader may not have had, such as living at home, unemployment benefits or a high income. Another says money advice often leaves out help like an inheritance or a family’s support. One person suggests comparing your progress with your own earlier balance instead of with other people’s.

A small amount counts, and a spent fund did its job

Some people say any amount saved is a step to be glad of, even $20, and that starting matters more than the size. The CFPB says even a small amount can provide some financial security. One person says the first $1,000 is the hardest part and feels like a reward once you reach it.

Some people say an emergency fund is meant to be used, and that spending it on a real emergency means it did its job, though it needs rebuilding. The CFPB says that if you use your emergency savings, you should work to build them up again. One person says it is disheartening when savings go quickly to an emergency. Another says having had the money kept things from getting worse, such as losing a job or a home. The CFPB also says to set some guidelines for yourself about what counts as an emergency.

How big a cushion?

Some people say three to six months of expenses. Others suggest a smaller first goal, such as $1,000 or one month of expenses. The CFPB says the amount you need depends on your situation. This page does not give you a target.

Where to keep it

The CFPB says an account at a bank or credit union is generally considered one of the safest places to put your money. The page Move the money that’s just sitting there covers deposit insurance in the US and the UK.

If you get a benefit

Some benefits count savings. The Social Security Administration (SSA) says Supplemental Security Income (SSI), a US benefit for some people with little money who are 65 or older, blind or disabled, counts resources: in 2026 the limit for countable resources is $2,000 for an individual and $3,000 for a couple, and bank accounts are on its list. The SSA does not count the home you live in, or up to $100,000 in an ABLE account, a savings account for some people with disabilities. The SSA also says people on SSI must report changes to their resources. In England, Scotland and Wales, GOV.UK says Universal Credit, a payment to help with living costs for people on a low income, out of work or unable to work, is not affected if you have below £6,000 in money, savings and investments. It says the payment is reduced by £4.35 a month for every £250 (or part of £250) you have between £6,000 and £16,000, and that you must usually have no more than £16,000. If you live with a partner, GOV.UK says your money is added together. One person warns that a bigger balance can stop you qualifying for some help, and another that the rules differ by place and by programme. Other benefits and other places differ, and this page cannot tell you how your savings would be counted. The office that pays your benefit decides. Ask it before you save a bigger sum, and report your money the way it asks. For advice in the US, there is LawHelp.org, which says its tools and directories are always free to use, or the benefit office itself. In the UK, Citizens Advice and Turn2us can help; in Northern Ireland, so can Advice NI (0800 915 4604). LawHelp.org and Citizens Advice are in the cards below.

Who this page is not for

If you cannot cover this month’s rent, food or bills, saving is not the first step. In the US, 211 connects you to local help. In the UK, Citizens Advice (England 0800 144 8848, Wales 0800 702 2020, Scotland 0800 028 1456) and StepChange can help with bills and debt. If you owe money at a high interest rate, the page Keep some cash, then let the interest rate decide looks at what to do first.

If you are in the UK, the Federal Reserve figures above are American. The Financial Conduct Authority figures are the UK ones, and MoneyHelper is the UK’s money guidance service.

If the feeling is bigger than the number, and money worry has you thinking about ending your life or hurting yourself, call or text 988 in the US, or call Samaritans on 116 123 in the UK. If you might act on it now, call 911 in the US or 999 in the UK.