Why Nearly Half of Americans Have Given Up on Saving Money

NEW YORK — Most Americans find themselves stuck in a discouraging pattern when it comes to saving money, with many believing their financial goals will remain forever out of reach. Recent research reveals widespread money worries across all age groups, showing that for most people, financial security feels like an impossible dream.

A new survey reports that 67% of Americans feel they’re lagging behind their savings targets. Even worse, 47% have completely given up hope, believing they’ll never reach the financial milestones they’ve set for themselves.

The research, conducted by Talker Research and commissioned by consumer banking app Current, questioned 2,000 Americans across different generations. Results reveal a concerning trend: people repeatedly dipping into their savings. Since January 2025, 63% of those with savings accounts have withdrawn money, with 19% (nearly one in five) making five or more withdrawals.

These withdrawals aren’t funding vacations or shopping sprees. Instead, Americans are using their savings to cover basics and emergencies. When asked why they’re taking money out, unexpected expenses topped the list (48%), followed by everyday necessities they couldn’t otherwise afford (36%), emergencies (30%), and housing payments like rent or mortgages (23%). Just 18% reported using their savings for something they were actually saving toward—showing how savings accounts have shifted from future planning tools into emergency backup funds.

How Much Are Americans Actually Saving?

On average, Americans try to save $496 each month, but this number doesn’t tell the whole story. Three in ten respondents (31%) can only put aside $200 or less monthly. This limited capacity—paired with the need to withdraw for unexpected costs—has left 25% of participants with smaller savings accounts now than at the start of 2025.

Generation X seems to be struggling the most, with 31% reporting decreased savings—higher than any other age group. Millennials show more stability, with only 19% seeing their savings shrink and 39% maintaining steady balances. Gen Z displayed the strongest growth potential, with 38% actually building their savings during this period.

“Americans are demonstrating incredible resilience and commitment to saving, even in challenging times,” said Erin Bruehl, vice president of communications at Current. “The fact that people are actively trying to build emergency funds shows their commitment to financial responsibility.”

Bruehl added, “Over 60% of people have needed to use their savings this year, highlighting exactly why Americans are smart to try and build this financial cushion. Their savings are successfully serving their intended purpose—helping navigate both unexpected costs and ensuring they can maintain their essential needs.”

A Generational Divide

The connections between Americans and their banks reveal clear age differences in satisfaction and expectations. Among Gen Z, 71% said their bank helps them reach financial goals—a satisfaction rate that drops steadily with age. Only 61% of millennials, 51% of Gen X, and just 41% of baby boomers shared positive feelings about their banking relationships.

Despite relatively high satisfaction, 52% of Gen Z thinks they could get better service elsewhere—higher than other generations. Three in ten Gen Zers find their bank’s benefits “outdated,” compared to only 11% of baby boomers who feel the same way.

These perception gaps affect loyalty across age groups. A substantial 45% of Gen Z would consider switching banks, while only 21% of baby boomers would think about making such a change—suggesting banks face bigger challenges keeping younger customers who expect more from digital banking features and benefits.

“Americans should select financial institutions that help them reach their goals,” Bruehl advised. “Online or mobile-only solutions often offer higher savings rates than traditional banks without monthly or minimum balance fees and provide additional benefits like early paycheck access and fee-free overdraft protection that provide additional cushion when bills are due. These benefits put more money in consumers’ pockets and can help people achieve their goals faster.”

The Reality of American Savings in Today’s Economy

The survey reveals Americans trapped in a financial bind: they know saving matters but face constant obstacles that derail their progress. Using savings accounts as emergency funds rather than long-term growth vehicles points to a broader issue where many people struggle to build both emergency reserves and future savings simultaneously.

For financial institutions, these findings highlight opportunities to better serve customers by offering relevant benefits, higher interest rates, and tools that help people track progress toward goals even during times when withdrawals are necessary.

The challenges reflect broader economic conditions where rising living costs, flat wages in many sectors, and economic uncertainties continue to pressure household finances.