New report reveals nearly 40% of Americans have less than $500 in savings

By TheStreet Roundtable

14 days ago

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The U.S. dollar index, a key indicator of the dollar's strength against the world's most significant trading partners, has been on a decline for seven consecutive sessions.

On Apr. 14, it dropped to 98, reaching its lowest level since the beginning of the United States-Israel-Iran conflict.

A bigger concern now is the faith of Americans in the dollar, as the financial cushion most of them rely on is quietly shrinking.

A survey commissioned by LendingTree and conducted by QuestionPro among 2,000 U.S. adults in February 2026 paints a stark picture: more Americans are seeing their savings shrink than grow.

Nearly 3 in 10 or 29% of Americans have less in cash savings than a year ago, compared with only 25% who have more.

Another 40% say their savings have not moved at all, which in an inflationary environment is effectively the same as falling behind.

The numbers get more alarming up close. About 14% of Americans have no cash savings whatsoever, a figure that rises to 32% among those earning under $30,000 a year and 20% among women.

Among those who do have something saved, 32% have less than $1,000. Breaking it down further, 12% have between $1 and $99, 11% have between $100 and $499, and 9% have between $500 and $999.

That means nearly 4 in 10 Americans are sitting on less than $500 in cash savings. This suggests that the cash that they have cannot cover most emergency expenses or even a single month of rent in most American cities.

"Stubborn inflation, still-high interest rates, a shaky job market and general economic uncertainty are making things challenging for many Americans," said Matt Schulz, LendingTree's chief consumer finance analyst. "When prices rise and budgets tighten, something has to give — and often that something is savings."

Why is money running out

The survey points clearly to the cost of living as the primary villain. When asked why they are not saving more, 34% of respondents said the cost of living and essentials consume all their income.

Two-thirds, or 66% of Americans, said they had withdrawn from their savings in the past year, with the most common reason being food and essentials.

Perhaps most striking is the emergency buffer question. Nearly half of Americans, approximately 45% of them, say they would not be able to cover more than one month of essentials if their income stopped today. A troubling 23% say their savings could not even cover a full week.

The generational divide is widening

Not all Americans are in equal distress.

The average peak savings balance over the past twelve months was $25,860 overall, but that number masks dramatic generational gaps.

Gen Z reported the lowest peak savings at $9,672, followed by millennials at $17,002 and Gen X at $21,076. Baby boomers averaged $52,605, which is more than five times what the youngest adults managed to set aside.

Meanwhile, 31% of Americans say they do not set aside any money for savings in a typical month.

So are they switching to crypto?

Two surveys conducted within months of each other tell a story about crypto adoption in the United States.

Gallup's probability-based survey of 2,017 adults from June 2025 puts crypto ownership at just 14%, with 60% of Americans saying they have no interest in buying it and 55% calling it a very risky investment.

Moreover, Gallup found that only 4% of Americans plan to buy crypto soon, suggesting the ownership ceiling may be lower than the industry expects.

However, in January this year, Security.org's survey of 992 adults puts ownership significantly higher at 30%, or roughly 70.4 million Americans.

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Both surveys indicate that Bitcoin dominates what people hold. But ownership skews heavily male and young, and the majority of Americans, even in 2026, remain on the sidelines.

Gallup found ownership is highest among men aged 18 to 49 at 25%, compared to just 8% among in the same age group. Security.org's data shows male crypto owners skew toward the 30-44 age bracket at 35%, while female owners are more concentrated in the 45-59 bracket at 35%.

Both studies indicate that volatility is a prime reason why many are hesitant to adopt digital assets. Despite the popularity of crypto exchange-traded funds (ETFs) and favorable policies under the Trump administration, the lack of a financial buffer makes it difficult for the average person to gamble on high-risk assets.

The data suggests that for a significant portion of the American public, the barrier to investment, whether in crypto or traditional stocks, is simply a lack of disposable income.