How much does the Average person have in the bank???

[dewilson58]

Percentile of Income Average Usual Annual Income
90% $245,400
80% $153,100
60% $91,900
50% $73,400
40% $59,500
20% $34,600
For 2022, those in the 90th percentile made about $245,400 on average.

Percentile of Income Average Bank Account Balance
90% to 100% $111,600
80% to 89% $33,800
60% to 79% $15,760
40% to 59% $7,400
20% to 39% $2,550
Less than 20% $900

Source: Federal Reserve Survey of Consumer Finances.

[thelegges]

So no investment, just straight up savings interest.

[retiredguy123]

Wrong question. Most wealthy people don't keep money in banks. That is one of the worst places to store your wealth.

[tophcfa]

Correct answer is, not enough.

[Stu from NYC]

Wrong question. Most wealthy people don't keep money in banks. That is one of the worst places to store your wealth.

Agreed

[village dreamer]

i told my kids ,i dont have $10 in the bank. and thats the truth:a20::a20::a20:

[Blueblaze]

Wrong question. Most wealthy people don't keep money in banks. That is one of the worst places to store your wealth.

The day I retired, I calculated how much money I would have saved if I'd just left it in a government-insured passbook savings account, making the same 4.25% that all banks paid for the 100 years preceding the housing crash, when the government nationalized the banks and ended saving account returns. It came out to twice as much as I spent following Buffett's advice of buy-and-hold, on stocks that seemed to be undervalued by 20%.

For instance, I had Sun Trust during the housing crises, and sat on it for a year, as it slowly imploded (along with Phillip-Morris, Enron, etc, etc). I stupidly believed their balance sheet, which said they had enough cash in the vault to cover all those high-risk mortgages. I don't know if they did or not -- I suspect all balance sheets are just the lies for the rubes. But in the end it made no difference.

The day I opened my 401K and realized that I no longer had enough money left to pay off my own mortgage, the scales fell from my eyes. I went to cash, increased my savings rate to 20%, and retired a millionaire 10 years later, just from the money I DIDN'T lose in the Wall Street Casino.

If anybody actually knew how to make money in the stock market, you would be able to buy an annuity from the "experts" at any 100-year-old insurance company (having survived countless recessions), that would guarantee the stock market's average 10% return, in exchange for a cut of whatever you have left when you die.

Know anybody offering that deal? Me neither.

Some folks can make a living in a casino. They're not called "winners", they're called "dealers".

[sharonl7340]

The question is how much the AVERAGE person has in the bank. I worked with average people for years and they were one paycheck away from bankruptcy and eviction. The experience here is not average across the nation.

[Romad]

Apparently average people are not willing to spend 5 minutes and buy 4-week Treasury Bills to meet their emergency spending needs or credit card bills.

[Blackbird45]

Though it's interesting, I'm not sure what the initial topic suggests.
I see it as safety vs returns, which you choose depends on your needs.
Banks are not the only safe place to store your funds.
At the end of the day each individual has to decide what is the best path forward.
My suggestion is to sit down and do your homework.

[MandoMan]

Percentile of Income Average Usual Annual Income
90% $245,400
80% $153,100
60% $91,900
50% $73,400
40% $59,500
20% $34,600
For 2022, those in the 90th percentile made about $245,400 on average.

Percentile of Income Average Bank Account Balance
90% to 100% $111,600
80% to 89% $33,800
60% to 79% $15,760
40% to 59% $7,400
20% to 39% $2,550
Less than 20% $900

Source: Federal Reserve Survey of Consumer Finances.

I’m not sure what you are trying to show us. I have essentially nothing in a bank savings account. Money comes into my checking account and out again as I pay my bills. But I have a lot in low-load indexed mutual funds. Are you trying to show us that people aren’t saving enough, or that the people with the highest income save the most? The two groups may not be the same. For years, savings accounts were paying, say, 0.5% interest when the inflation rate was 2%. That is not a sound way to make your money grow.

[bopat]

There was always money in the banana stand

[retiredguy123]

I’m not sure what you are trying to show us. I have essentially nothing in a bank savings account. Money comes into my checking account and out again as I pay my bills. But I have a lot in low-load indexed mutual funds. Are you trying to show us that people aren’t saving enough, or that the people with the highest income save the most? The two groups may not be the same. For years, savings accounts were paying, say, 0.5% interest when the inflation rate was 2%. That is not a sound way to make your money grow.
I agree. I use a bank checking account for day-to-day cash flow only. All my savings assets are in mutual funds or other non-bank accounts. I have owned bank CDs years ago, but I no longer consider them to be an efficient way to save money.

[Kelevision]

There was always money in the banana stand

I love that show!

[Wondering]

You have to get a life!

[Robbb]

Percentile of Income Average Usual Annual Income
90% $245,400
80% $153,100
60% $91,900
50% $73,400
40% $59,500
20% $34,600
For 2022, those in the 90th percentile made about $245,400 on average.

Percentile of Income Average Bank Account Balance
90% to 100% $111,600
80% to 89% $33,800
60% to 79% $15,760
40% to 59% $7,400
20% to 39% $2,550
Less than 20% $900

Source: Federal Reserve Survey of Consumer Finances.

Bank? who uses a bank anymore?

[justjim]

Many “average income “ people have a checking account for direct deposits of retirement income (electronic credit) and automatic pay of utilities, etc. (electronic debits). Some pay their bills on their computer or phone. However, that said I read a few months ago that approximately 40% of Americans live from paycheck to paycheck and couldn’t come up with $400 of extra cash. Yes, that is a lot of people!

[retiredguy123]

Many “average income “ people have a checking account for direct deposits of retirement income (electronic credit) and automatic pay of utilities, etc. (electronic debits). Some pay their bills on their computer or phone. However, that said I read a few months ago that approximately 40% of Americans live from paycheck to paycheck and couldn’t come up with $400 of extra cash. Yes, that is a lot of people!
So, if 40 percent of the people make more than $59,500, and have $7,400 in the bank (Post No. 1), why can't they come up with $400?

[justjim]

So, if 40 percent of the people make more than $59,500, and have $7,400 in the bank (Post No. 1), why can't they come up with $400?

Good question? Does someone want to explain? Although it’s windy I’ve got a tee time.

[LonnyP]

Do they have the dollar amounts stuffed in mattresses?

[rsmurano]

You lose money every day if you have your savings in a bank or an annuity. You are losing money when invested in active mutual funds because of all the fees: turnover, expense, loads, and the history of active fund managers can’t beat the market more than a couple years in a row on average.
It is wrong to compare casino gambling to investing in the stock market. If you know what to look at, the market is very easy to invest in.
The easiest investment for the last year and probably thru 2024, you can get over 5% in a simple money market with very low expense, easy to get out of, and very safe. If you are nervous, you can always get into a target fund that is balanced if that will let you sleep easier.
Me, I have a few index funds that have worked for me for the last couple of decades and a couple of stocks that have done very very well, like over 25% per year on average when the economy is doing ok. After November 2024, I will get out of the money markets and will be 100% invested in those same index funds that I have always been in.