New Survey Shows: Most Middle-Class Americans Are Struggling to Save Money. How Do You Compare?

Unemployment is low and by most measures the U.S. economy is booming -- but many middle-income Americans are feeling financial hardship. 

A new survey from the National True Cost of Living Coalition shows that 65% of Americans who are usually identified as "middle class" (defined as earning more than 200% of the federal poverty level, or $62,400 for a family of four in 2024) said that they are struggling financially. 

High inflation and high interest rates have caused many Americans to feel pain in their household budgets. But the survey also found that this 65% cohort of middle-class Americans don't expect their financial struggles to get better for the rest of their lives. 

Let's look at a few reasons why so many Americans are struggling with money -- and what it might mean for your savings account. 

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Have you saved more money than the typical American? 

Bloomberg analysis of the National True Cost of Living Coalition survey found that only 20% of Americans have $10,000 or more in savings, and 28% of Americans have no savings at all. Plus, 46% of Americans don't have $500 saved for an emergency, and 40% cannot plan ahead beyond their next paycheck. 

Previous research from The Motley Fool Ascent found that the typical American savings account has a balance of $1,200. Based on the survey from the National True Cost of Living Coalition, if you have $10,000 (or more) in your savings account, a money market account, or CD, that means you're in the top 20% of American savers. 

Most Americans struggle to make financial plans for the future

Another troubling theme from the National True Cost of Living Coalition survey is that so many Americans are living paycheck to paycheck. In fact, 80% of Americans have done so at one time or another. 

People at all middle-class income levels, even some with higher incomes, struggle to make financial plans for the future. The survey also found: 

• 24% of Americans who make more than 200% of the federal poverty level (more than $62,400 for a family of four) have to make "difficult financial decisions" regularly. 
• A majority of Americans who make less than 300% of the federal poverty level (less than $93,600 for a family of four) are having difficulty managing debt. 
• 49% of Americans cannot save for major expenses at all. 

If you're still struggling to put together a decent cash emergency fund and build some financial stability, you are not alone. Living paycheck to paycheck is incredibly stressful, because it doesn't give you any margin for error or time to relax -- one missed paycheck or unexpected expense can throw your life into chaos. 

Building a decent emergency savings fund should be one of your top priorities, even if you can't pay off your credit card debt. Even a smaller emergency fund of $2,500 (instead of the usual personal finance gurus' recommended "three to six months of expenses") can help you avoid a financial disaster, like your car getting repossessed or being evicted. 

Cash in the bank can relieve your money stress, and give you breathing room to start planning ahead and making some savvy money moves to invest for the future. 

How Americans can rebuild their savings 

Life in America is expensive, with car ownership, car insurance, homeownership, healthcare, rent, food, and many other must-haves of everyday life getting more costly in the past few years. As a result, Americans' "extra savings" of $1.2 trillion from the pandemic era have mostly been spent. 

But here are a few savvy money moves that Americans should make today, in case you have no money in your savings account and want to improve your financial foundation. 

Get a budgeting app 

The best budgeting apps can help you see where your money is going each month. Many people are afraid or ashamed to face up to the hard numbers of their monthly spending. Try not to feel bad about it; just let the app do the math for you. You might find opportunities to cut spending on non-essential takeout meals or subscription services you don't use. 

Make automatic transfers to savings 

Can you find an extra $50 to $100 per month to put into savings? Even a small amount of money in a savings account can reduce your money stress. It feels empowering and energizing to watch that savings account balance grow -- you might find that you enjoy saving, and you want to keep the momentum going. 

Start a side hustle 

Unless your full-time job and commute is so demanding that you have no more extra hours or energy to give, you might want to consider starting a side hustle to earn extra income. Side hustles can help you replenish your savings, pay off debt faster, and accomplish other powerful goals for your personal finances. 

Bottom line 

Americans are not just lacking money in their savings accounts; they're suffering from a lack of confidence in the future. If middle-class Americans no longer believe that their financial problems will ever get better, that's a bad sign for the U.S. economy and the idea of the "American dream." 

Try not to give up. Most people have a few good options available to sort out their budget, boost their savings, and earn higher incomes.