What you should save really comes down to your own financial situation, but most pros suggest aiming for somewhere between three and six months of expenses. The thing is, that’s just not realistic for a lot of Americans. A June 2025 report actually found that 32% of people surveyed didn’t even have a dedicated emergency savings account. Even more concerning, 29% said they couldn’t cover a surprise $400 expense. It gets pretty rough when you look at how different age groups are doing.
According to that same report, millennials are sitting on the lowest emergency savings of any generation—just a median of $300. Compare that to baby boomers, who came out on top with a cool $2,000 in the bank. Gen Z has about $400 and Gen X has around $500, which is a bit more than millennials, but still nowhere near that three to six month target most experts recommend.
Now, while emergency savings are pretty low across the board, it’s worth mentioning that millennials are dealing with some extra financial headaches that help explain why they’re lagging behind boomers. Student loan debt is a big one—millennials carry the largest share of total student debt, and as of mid-2025, the average millennial is sitting on about $32,911 in student loans.
What’s really stopping people from saving?
Beyond student loans, you might be curious about what’s actually keeping people from building up that emergency cushion. It’s not just one thing, honestly. But the rising cost of living seems to be the main culprit for most people. In fact, 63% of survey respondents pointed to rising living costs as the main reason they’re struggling to save or keep their emergency fund intact. When you think about how much groceries and rent have gone up lately, that’s pretty easy to understand.
Then there are those unexpected costs that can totally derail your savings plan. According to the report, 26% of folks had to deal with surprise car repairs in the past year, while 24% got hit with unexpected medical bills. Home repairs accounted for another 19% of surprises, and job loss or reduced income made up 14%. These kinds of events can completely wipe out a savings account you’ve been building for years, or push someone without any savings straight into debt.
