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Personal Finance Statistics 2025: Savings, Debt & Financial Literacy

Personal finance statistics 2025: 27% have zero savings, 59% can't cover $1,000 emergency, $18.59T household debt, only 48% financially literate.

Capital Counselor Published: December 18, 2025 14 min read

Americans are facing a savings crisis. In 2025, more than one in four adults have absolutely no emergency savings — the highest level ever recorded. Meanwhile, household debt has hit a record $18.59 trillion, and only half of Americans can correctly answer basic financial literacy questions.

Whether you're trying to understand how your finances compare or looking for motivation to improve, these personal finance statistics reveal the true state of American finances today.

Key Takeaways

  • 27% of Americans have zero emergency savings (highest ever)
  • 59% can't cover a $1,000 emergency expense with savings
  • 53% are living paycheck to paycheck
  • Total household debt hit $18.59 trillion — a new record
  • Americans are only 48% financially literate on average
  • Average 401(k) balance: $144,400 (record high)
  • Financial illiteracy costs Americans $1,015/year per person

Emergency Savings Statistics

1. 27% of Americans have zero emergency savings

According to Bankrate's 2025 Emergency Savings Report, 27% of US adults have no emergency savings whatsoever. This is the highest level ever recorded, exposing a sharp rise in financial fragility across the country.

27% Zero Savings
59% Can't Cover $1K
42% No Emergency Fund
4.4% Savings Rate

2. 59% of Americans can't cover a $1,000 emergency

According to Bankrate, 59% of Americans in 2025 don't have enough savings to cover an unexpected $1,000 emergency expense — like a car repair or ER visit. Only 41% could pay from savings, the lowest since 2021.

3. 42% of Americans have no emergency fund at all

A U.S. News survey found that 42% of Americans don't have an emergency fund of any kind. Women are hit harder — 49% of women have no emergency fund compared to 36% of men.

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Gender Gap: Women have average emergency savings of $6,500 compared to $11,000 for men — a 41% difference that leaves women more financially vulnerable.

4. 37% of Americans can't handle a $400 emergency

According to Empower's 2024 survey, nearly 37% of Americans aren't prepared to handle even a $400 emergency expense without going into debt or selling something.

5. Americans saved only 4.4% of their income in 2024

The personal savings rate fell to just 4.4% in 2024 — far below the 10-15% experts recommend. The savings rate has declined 10% from August 2024 to August 2025.

6. 73% of Americans are saving less due to inflation

Nearly 3 in 4 Americans (73%) are saving less for emergencies due to inflation, elevated interest rates, or changes in employment — up from 68% in 2024.

Living Paycheck to Paycheck

53% of Americans live paycheck to paycheck

7. 53% of Americans are living paycheck to paycheck

More than half of Americans (53%) say they're living paycheck to paycheck in 2025. This affects people across all income levels, creating widespread financial stress.

8. 72.8% of those earning under $50K live paycheck to paycheck

Income level dramatically affects financial stability. While 72.8% of those earning under $50,000 live paycheck to paycheck, even 32.3% of those earning over $100,000 face the same struggle.

Income Level % Living Paycheck to Paycheck
Under $50,000 72.8%
$50,000 - $99,999 44%
Over $100,000 32.3%

9. 43% of Americans have difficulty paying bills

About 43% of U.S. adults report some difficulty paying bills. Millennials and those with consumer debt struggle most, with 59% and 58% respectively having trouble.

Financial Literacy Statistics

10. Americans answer only 48% of financial questions correctly

Americans answered only 48% of financial literacy questions correctly in 2024, according to The Motley Fool. This reflects a longstanding gap in financial knowledge that has persisted for 8 consecutive years.

48% Avg. Score
$1,015 Cost/Person/Year
$243B National Cost
27 States Require It

11. Financial illiteracy costs Americans $1,015 per year

According to the National Financial Educators Council, Americans lose an average of $1,015 per person each year due to gaps in financial knowledge — a collective cost exceeding $243 billion annually.

12. Only 27% of Americans pass basic financial literacy tests

FINRA found that only 27% of 25,500 U.S. adults surveyed correctly answered 5 of 7 basic financial knowledge questions in 2024. The majority struggle with concepts like compound interest and inflation.

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Education Gap: Today, 27 states require students to take a personal finance course to graduate — that's 3x more than in 2020. But it's still not enough.

13. Gen Z has the lowest financial literacy at 38%

Financial literacy is lowest among Gen Z (38%), followed by Millennials (46%). Only 25% of 18-to-29-year-olds feel "strongly confident" in their financial knowledge — down from 36% just two years ago.

Generation Financial Literacy Rate
Gen Z 38%
Millennials 46%
Gen X 51%
Baby Boomers 55%

14. Men score 53% on financial literacy vs. 43% for women

Men answered 53% of financial literacy questions correctly while women answered 43% correctly. While 62% of adult males exhibit financial literacy, only 52% of females do.

15. Only 28% of low-income Americans are financially literate

Those earning over $100K answered 58% of financial literacy questions correctly, compared to just 25-28% for those earning under $25K — showing a strong correlation between income and financial knowledge.

Household Debt Statistics

$18.59T Total US Household Debt (Record High)

16. Total US household debt hit $18.59 trillion

As of Q3 2025, American households carry a record $18.59 trillion in total debt — averaging $105,056 per household. This increased by $197 billion (1%) in just one quarter.

17. Mortgage debt makes up 70% of household debt

Mortgage debt constitutes 70% of total household debt, amounting to $13.07 trillion. Auto loans ($1.64T), student loans ($1.63T), and credit cards ($1.18T) make up the rest.

Debt Type Total Amount % of Total
Mortgage $13.07 trillion 70%
Auto Loans $1.64 trillion 8.8%
Student Loans $1.63 trillion 8.8%
Credit Cards $1.18 trillion 6.3%
Other $1.07 trillion 6.1%

18. 41% of Americans have credit card debt

More than 4 in 10 U.S. adults (41%) have credit card debt. The average household with credit card debt owes $7,321 — up nearly 6% from last year.

19. Americans owe over $1.2 trillion in credit card debt

As of mid-2025, Americans have over $1.2 trillion in credit card debt. People with credit card debt currently pay interest at a staggering 22.83% average annual rate.

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Interest Burden: In 2024 alone, Americans spent $254.16 billion on credit card interest and fees. Total consumer loan interest and fees reached $970 billion.

20. 37% have more credit card debt than retirement savings

According to Ramsey Solutions, more than a third of Americans (37%) have more credit card debt than retirement savings — that's over 90 million U.S. adults prioritizing debt payments over their future.

21. Debt payments equal 11.2% of disposable income

In Q2 2025, average American debt payments accounted for 11.2% of disposable income. While lower than most of the 2000s, this still represents a significant financial burden.

Net Worth by Age

22. Average American net worth is $1.06 million; median is $192,700

According to the Federal Reserve, average net worth in the U.S. is $1.06 million but the median is just $192,700. The median is more accurate because a few wealthy households skew the average.

$1.06M Average Net Worth
$192,700 Median Net Worth
37% Surge Since 2019
$45.8T Total Retirement Assets

23. Americans' median net worth surged 37% from 2019 to 2022

The median net worth jumped from $141,000 to $192,900 between 2019 and 2022 — the biggest increase since the Survey of Consumer Finances began in 1983, driven largely by home values and stock gains.

Age Group Average Net Worth Median Net Worth
Under 35 $183,500 $39,040
35-44 $549,600 $135,300
45-54 $975,800 $247,200
55-64 $1,566,900 $364,500
65-74 $1,794,600 $410,000
75+ $1,624,100 $335,600

24. Net worth peaks at ages 65-74 with median of $410,000

Households led by those aged 65 to 74 have the highest median net worth at around $410,000. Those under 35 have a median of just $39,040 — a 10x difference.

Retirement Savings Statistics

25. Average 401(k) balance reached record $144,400

According to Fidelity's Q3 2025 analysis, the average 401(k) balance hit a record $144,400 — up 9.1% from a year ago. This was driven by consistent savings and positive stock market performance.

$144,400 Avg 401(k)
$12.2T Total 401(k)s
14.2% Savings Rate
54% No Retirement Savings

26. Americans have $12.2 trillion invested in 401(k)s

Americans had $12.2 trillion invested in 401(k)s and $16.8 trillion in IRAs in Q1 2025, according to the Investment Company Institute. Total U.S. retirement assets reached $45.8 trillion.

27. 54% of American households have no dedicated retirement savings

Over half of American households (54%) report having no dedicated retirement savings. Yet for those who do save, the total 401(k) savings rate remained steady at 14.2% in Q3 2025.

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Retirement Crisis: 79% of Americans say there's a retirement crisis in America. 65% feel behind on their retirement savings, and 73% say inflation has made them more concerned.

28. Only 60% of Americans have any retirement savings

According to Gallup, about 6 in 10 Americans report having money invested in a retirement savings plan such as a 401(k), 403(b), or IRA — meaning 40% have nothing saved for retirement.

29. People contribute 12% of their pay to 401(k)s on average

Americans contribute an average of 12% of their pay to 401(k) plans, including employer matching contributions. The median contribution rate is 11.5%.

30. Average 401(k) balance for 65+ is $299,442

Workers aged 65 and older have an average 401(k) balance of $299,442. However, experts suggest most retirees need 10-12x their annual income saved, meaning many are falling short.

Income Statistics

31. Average household income is $80,600

In 2023, the average before-tax household income was $80,600 — a 4% increase from $77,540 in 2022. Median weekly earnings reached $1,165 in Q3 2024.

32. 56% of workers say they are underpaid

More than half of American workers (56%) believe they are underpaid for their work. This perception contributes to financial stress and job dissatisfaction.

33. Americans need $74,688 to feel financially secure

On average, Americans say they need $74,688 per year to feel financially secure — well above the national median household income. This gap explains widespread financial anxiety.

Budgeting & Financial Planning

34. 83% of Americans follow a budget

Survey results show 83.1% of Americans report following a budget — whether strictly or loosely. Nearly 80% of budgeting app users engage with these platforms at least weekly.

83% Follow a Budget
36% Have Long-Term Plan
55.9% Worry About Overspending
64% Plan to Invest

35. Only 36% of households have a long-term financial plan

Despite 83% budgeting, only 36% of U.S. households had a long-term financial plan in 2024. Short-term budgeting without long-term goals limits wealth building potential.

36. Overspending is the top concern for 55.9% of Americans

More than half (55.9%) of respondents said overspending is a major concern. Other common hurdles include irregular income (30%), lack of financial knowledge (27.6%), and difficulty tracking expenses (23.7%).

Financial Stress & Mental Health

37. 50% of Americans worry daily about finances

Half of U.S. adults (50%) worry daily about their personal finances. More than a third lose sleep at night due to money concerns, impacting both mental and physical health.

38. 69% say money stress triggers anxiety or depression

According to Northwestern Mutual, 69% of people say financial stress triggers anxiety or depression. Additionally, 49% say it's hurting their work performance — up from 36% just two years ago.

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Stress Spending: 34% of Americans spend money when stressed or emotional. Gen Z is even higher at 48%, creating a vicious cycle of stress and financial instability.

39. 44% say finances "control their life"

According to CFPB's 2024 report, 44% of consumers felt their finances "control their life" always or often. This feeling of helplessness contributes to poor financial decisions.

40. 41% say inflation is their biggest financial concern

According to Gallup, 41% of Americans cited inflation or the high cost of living as their most pressing financial issue in 2024 — up from 35% in 2023 and 32% in 2022.

Financial Outlook & Attitudes

41. 67% of Americans feel positive about their financial future

Despite current struggles, 67% of Americans feel positive about their financial future in 2025 — the most hopeful sentiment since before the pandemic. However, only 38% are confident in their ability to save for retirement.

42. 41% prefer to "enjoy life now" over saving

A sizable number of Americans (41%) say they would rather enjoy life now than save for the future. Gen Z is even more present-focused at 50%, potentially setting up future financial problems.

43. Americans define "wealthy" as $2.3 million

According to Charles Schwab's 2025 Modern Wealth Survey, Americans now define "wealthy" as having $2.3 million in net worth, and "financially comfortable" at $839,000 — both up from previous years.


Summary: Personal Finance by the Numbers (2025)

Metric Value
Americans with Zero Savings 27% (record high)
Can't Cover $1,000 Emergency 59%
Living Paycheck to Paycheck 53%
Total Household Debt $18.59 trillion
Credit Card Debt $1.2+ trillion
Average Credit Card Interest 22.83%
Financial Literacy Rate 48%
Cost of Financial Illiteracy $1,015/person/year
Average Net Worth $1.06 million
Median Net Worth $192,700
Average 401(k) Balance $144,400
No Retirement Savings 54%
Average Household Income $80,600
Personal Savings Rate 4.4%
Worry Daily About Finances 50%

Sources

Last updated: December 2025. Statistics are updated as new data becomes available.

Capital Counselor

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