Americans have a savings crisis. Or more accurately, we have a crisis of under-saving.
In 2026, about a third of U.S. adults have $0 saved for emergencies. People in this group often feel like they’re just bad with money. However, you should keep in mind that we’re all facing factors beyond our control. Between inflation, high medical costs, and challenges in the job market, many Americans are finding it difficult or even impossible to save money.
How many Americans have no savings?
It’s difficult to say exactly how many Americans have $0 in savings, since different sources cite different figures.
One survey from Empower found that 32% of respondents reported they had no emergency savings. And 39% said rising prices are the biggest roadblock to saving for a rainy day.
Meanwhile, a Yahoo Finance and Marist poll put the number of Americans without savings higher; 35% of respondents said their savings would not last them a full month if they lost income.
Who is saving the least in America? According to the Federal Reserve, the groups with the least money saved include people who didn’t complete high school and adults under the age of 30 (Gen Z).
Biggest challenges to saving in today’s economy
A savings shortage is not always about lack of discipline. According to Yahoo Finance’s survey, only 8% said their savings shortage was due to overspending. These were the more prevalent causes people cited:
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47%: Cost of living
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11%: Unexpected bills or expenses
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10%: Change of income or employment status
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10%: Too many financial obligations
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8%: Choosing to spend extra income on things you enjoy
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6%: High-interest debt repayment
Read more: What to do when your pay raises aren’t keeping up with the cost of living
Consequences of having no savings
Unfortunately, people who don’t have savings often make harmful financial decisions to cover their expenses. Here are some of the common “solutions” people turn to when their savings accounts are empty:
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Overborrowing: A FINRA study found that 27% of people use credit cards to cover unexpected expenses, and 12% turn to loans. Considering that the average personal loan rate is now 11.40% and credit card rates are at 21%, these fixes might turn a temporary financial problem into a long-term debt issue.
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Overworking: A common solution for people who need emergency funds is to pick up extra work. But as a result of overworking, you might become fatigued and make bad financial decisions for the sake of convenience. For example, after a long shift, you’re more likely to buy fast food than to cook at home.
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Tapping into retirement: Many people see their retirement savings as a solution for unexpected expenses. But taking an early withdrawal or a loan from a retirement account can be costly. For example, if you make an early 401(k) withdrawal, you usually have to pay a 10% penalty, plus income taxes on the withdrawal amount. You’ll also have less money available when you retire.
Read more: How much do you really need to save for retirement?
How to start saving money even when money is tight
When money is tight, saving can feel impossible. But don’t worry about saving a lot at first — instead, focus on building the habit. Setting aside a few dollars consistently adds up and can create momentum to build a bigger cushion over time.
Here are a few ways to get started saving:
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Start small: Even if you can only save $10 from each paycheck, it’s important to build a habit of spending less than you make. Once your finances improve, you can increase your contribution.
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Take advantage of pay increases: If your income increases, don’t ramp up your spending. Instead, increase your automatic contributions to your savings. You can also increase your savings contributions when you pay off debt. For example, if you pay off a $250 a month car loan in July, start contributing $250 a month to your savings in August.
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Earn interest: Almost a quarter (23%) of Americans keep their savings in checking accounts, and 19% store their cash at home. But both of those options mean losing out on interest earnings. A far better option is to keep your savings in a high-yield savings account, where it can potentially earn as much as 4% APY.
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Pause retirement contributions: If you’re contributing money to retirement, put your contributions on pause. Use the money to build up your emergency savings fund first, and then go back to saving for retirement. That way, you won’t be tempted to make expensive early retirement withdrawals to cover emergencies.
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Sign-up bonus: Find a bank that will reward you with a sign-up bonus for opening an account. If you choose the right bank, you can earn as much as $300 for opening an account and following specific deposit guidelines.
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Implement a spending freeze: For many people, the thought of cutting all your non-necessities can feel suffocating. But what if you only cut them out for a set period, like a month or two? If you put a pause on expenses such as streaming, travel, and dining out, you might find yourself with hundreds of dollars to deposit to your savings.
Read more: I went on a one-week spending freeze and saved $200. Here’s how you can too.
