Figuring out how much you should save each month is a personal decision that can vary depending on your income, expenses, and savings goals. However, as a general rule, most experts recommend saving 10% to 20% of your monthly income.

Of course, this is just a general guideline — this percentage may look different for savers with different financial situations, household sizes, debt balances, and more.

Even so, you might be wondering how your own savings balance compares to the average person. According to the Federal Reserve’s Survey of Consumer Finances, the median balance for all transaction accounts (checking accounts, savings accounts, money market accounts, call accounts, and prepaid credit cards) is just $8,000. However, the numbers vary widely when we look at averages among various age groups.

Read on to see how your savings balance stacks up against your peers.

Average American savings by age

Your savings account balance will fluctuate as you age, your income increases or decreases, and your cost of living changes.

Here’s a look at the mean — or average — savings balance for Americans across various age groups as of 2022 (the most recent data available from the Federal Reserve). Note that figures are represented in thousands:

Overall, those under age 35 have the least amount in savings — presumably because this age group hasn’t had much time in the workforce and has yet to reach their maximum earning potential.

Over time, savers start to move up the ladder as they earn more money, pay down debt, and possibly even profit from long-term investments. Those with families eventually become empty-nesters and may eliminate some of the regular expenses that come with raising a family.

Savers appear to reach higher account balances once they’ve reached retirement age, but then see a dip as they move into their golden years and are no longer working and saving at the same rate.

Read more: How to save $10,000 in a year

The importance of saving money

Putting money in your savings account is important for several reasons. For one, it can make larger purchases easier to manage. Maybe your summer travel plans don’t fit neatly into your budget, but by putting away $100 each month in a savings account, you can save up enough to cover your airfare, hotel, and excursions. Or perhaps you want to avoid racking up debt during the holiday season, so you set money aside each month for gifts at the end of the year.

Consistently setting aside savings for a larger purchase is a good way to keep you motivated and on track — but it’s not the only reason you may want to put away money each month.

Building up your savings and putting it in an emergency fund can create a safety net for life’s unexpected challenges, whether it’s a surprise medical bill, car repair, or job loss.

In other words, even if you don’t have a specific goal in mind to save for, you should still be putting away money each month in your savings account.

Read more: How the 52-week savings challenge can help you save $1,300 in a year

Barriers to saving

Of course, saving money can be a challenge for many, especially in the wake of skyrocketing inflation and interest rates. It’s okay to slow or pause your savings in order to address common barriers to saving, including:

• You’re working on paying down debt: Credit card debt, student loans, mortgage payments, and other types of debt can eat into your monthly budget and make it more difficult to save.

• You haven’t reached your full earning potential: It’s not impossible to save on a lower income, but if you’re still at the start of your career or not where you want to be in terms of income, it can be more difficult to find the room in your budget to save.

• Your living expenses account for a big part of your monthly income: Rent, groceries, child care expenses, utilities, and other bills can add up and leave you with little to no extra income for your savings.

• You make frequent withdrawals from your savings account: Your savings account is there to serve as a buffer for unexpected and irregular costs. But if you rely on it as an extra source of income to cover non-essential expenses, you might find that your balance never grows beyond a certain amount.

The key is to identify the roadblocks you’re facing when it comes to saving and making a plan to fix them.

Learn more about how much you should have saved by age 30 | age 40 | age 50

Tips for boosting your savings account balance

Growing your savings account balance takes time and careful planning, but with the right strategy, you can build up enough savings to cover all of your financial goals and long-term expenses.

• Consider a new savings account: The account you choose to keep your savings in is equally as important as the amount you’re contributing. The national average rate for a savings account is only 0.46%, but there are many high-yield savings accounts and certificates of deposit (CDs) that offer 5% APY and up. You could be missing out on extra savings by not exploring high-yield account options.

• Work on eliminating debt: Prioritizing paying off your high-interest debt can free up room in your monthly budget to put more money into your savings account each month. Using a debt repayment strategy like the snowball or avalanche method can help you get the ball rolling and save money on interest over time.

• Trim your regular expenses: If you haven’t revisited your budget in a while, you may be spending more than necessary, whether it’s a forgotten subscription or a gym membership you no longer use. Review your budget and bank statements carefully to see if there are spending categories you could trim down to allocate more money toward your savings goals.

• Automate your savings: Automating your savings contributions ensures that you’re making regular contributions to your savings account and that your balance continues to grow over time.