Here’s How Much the Average American Has in Emergency Savings (How Do You Compare?)

Emergency savings funds are crucial for your financial health. Whether you lose your job or need to cover an unexpected repair or medical bill, your emergency fund can help lower your financial stress quickly and without going into debt.

Below, we'll look at how much the average American has in emergency savings by age, and what to do if your own savings need a boost.

The 2025 Emergency Savings Report from Bankrate, SSRS, and YouGov polled more than 1,000 U.S. adults about their levels of debt and emergency savings. They found that a majority of Gen Zers (who range from ages 18 to 28) have a worryingly low emergency fund:

• Just 10% of Gen Zers have enough saved to cover six months or more of expenses.
• Another 18% have an emergency fund of three to five months' expenses.
• Finally, 37% of Gen Zers have less than three months' expenses, and 34% have no emergency fund at all.

Most Gen Zers are aware that their emergency funds could use a boost. Only 29% said they were "comfortable" with their emergency savings level, while 70% were uncomfortable.

It's generally recommended that you have between three and six months' worth of expenses in your emergency fund. According to the Bankrate report, 63% of Americans would need six months or more of savings to feel comfortable, while another 22% would need between three and five months.

When setting up an emergency fund, it's also important to be honest with yourself about what "emergency" really means. Things like a hospital bill or car repairs probably qualify, but a new gadget or luxury vacation definitely don't.

Compared with Gen Z, millennials have made significant progress in setting up an emergency fund:

• 25% of millennials have saved a full six months of expenses in their emergency fund.
• 16% have somewhere between three and five months' worth of expenses in their emergency savings.
• 28% of millennials have no emergency savings, while 31% have saved less than three months' expenses.

Millennials have had more time to save than Gen Z, which allows them to build momentum. You don't have to save an emergency fund of thousands of dollars all at once; even putting away just $50 or $100 per paycheck will add up and help you build the discipline to keep going.

Your emergency savings fund should be in a separate account that you only touch when you really need to, such as a high-yield savings account or certificate of deposit (CD). It can also help to automate the process by making a transfer every payday from your checking account to your savings.

Life changes, such as having children or buying a home, can impact how much you'll need in your emergency fund. If your expenses have increased, for example, your emergency fund will also need to increase to give you three to six months' worth of cushion.

Members of Generation X are more likely to have an emergency fund than millennials, but also less likely to have a full six months saved:

• 20% of Gen Xers have saved up a full six months of expenses, and another 22% have saved between three and five months.
• 34% have a modest emergency fund, with less than three months' worth of expenses.
• 24% of Gen Xers have no emergency savings at all.

Gen Xers have the most credit card debt of any generation. If you have high-interest debt, it can be tempting to pay it all off first before you build your emergency fund. However, studies have shown that even $2,000 in emergency savings can significantly improve your financial well-being. Consider building a small emergency fund for unexpected and critical expenses before you start aggressively paying down debt.

In addition, financial windfalls such as a tax refund, bonus, or inheritance can be powerful tools for strengthening your emergency fund. Consider directing some or all of the money into your emergency savings.

Baby boomers are the most likely to be in good shape when it comes to their emergency savings:

• A full 41% of baby boomers have at least six months of expenses in their emergency fund.
• 34% have less than three months' worth of savings, and 22% have between three and five months' worth.
• Only 16% of baby boomers have no emergency savings.

It's never too late to start saving for your emergency fund, especially when your income goes up. Consider directing a portion of the increase straight into your savings before adjusting your lifestyle.

If you're concerned about the size of your emergency savings as you approach retirement, the obvious step is to reduce non-essential and discretionary spending (such as dining out or making impulse purchases). When you do need to dip into your savings, aim to replenish the money you've used once you get back on your feet, so that you're prepared for the next bump in the road.

Building and maintaining an emergency fund isn't just about preparing for the unexpected — it's also about creating peace of mind. Having a financial cushion helps you avoid high-interest debt, keep your long-term goals on track, and even free up more opportunities to build wealth over time.

No matter your age or income, starting small and saving consistently can make a big difference in your financial security.