Average Income & Savings in America (2025 Update)
- davidewhitebooks
- Aug 17
- 4 min read
Updated: Nov 22
When we talk about money in America, two words often come up: median and average. They sound similar, but they tell very different stories about what people earn and save.
👉 Understanding the difference matters if you want to see how you compare to others and where you stand in today’s economy. In this post, we’ll break down the average income and savings in America 2025 and what it means for everyday families.
Median vs. Average Income (Made Simple)
• Median: The middle value in a set of numbers when arranged from lowest to highest. Half earn less, half earn more.
Example: In [20, 30, 40, 50, 100], the median is 40.
• Average (Mean): Add up all numbers, then divide by the total count.
Example: In [20, 30, 40, 50, 100 = 240], the average is 48 (240 ÷ 5).
✅ Why this matters: The average can make America look wealthier than it is, while the median shows what a typical household actually earns or saves. Looking at both together in 2025 gives us a more realistic benchmark of how Americans are really doing.
U.S. Income & Savings Snapshot (2025)
(Sources: U.S. Census Bureau, Federal Reserve 2023–2024)
• Median household income → about $74,580
• Average household income → about $106,000
• Median household savings → about $5,300
• Average household savings → over $40,000 (skewed higher by wealthy families)
What’s Recommended (Simple Targets)
Financial experts often suggest:
- By age 30 → Save 1x your annual income
- By age 40 → Save 3x your annual income
- By retirement (65+) → Save 10x your annual income
💡 Example (earning $60,000/year):
- Age 30 → $60,000 saved
- Age 40 → $180,000 saved
- Retirement → $600,000+ saved
But most households fall short. Comparing these targets to the average income and savings in America 2025 shows how challenging it can be for families to stay on track.
A Simple Budget Rule That Works: 65/10/15/10
Here’s how to divide your net income (take-home pay):
65-10-15-10 Rule
65% for Needs (housing, food, transportation, insurance, etc)
10% for Savings (emergency fund, short-term goals)
15% for Investing & Growth (retirement, wealth building)
10% for Giving or Debt Payoff
▪️ Remember, as your take-home pay increases, continue to use the same percentage. This approach works at nearly every income level and can help close the gap between your goals and the average income and savings in America 2025.
Examples
Take-home $30,000/year ($2,500/mo):
- Needs → $19,500/yr | $1,625/mo
- Savings → $3,000/yr | $250/mo
- Investments → $4,500/yr | $375/mo
- Giving/Debt → $3,000/yr | $250/mo
Take-home $60,000/year ($5,000/mo):
- Needs → $39,000/yr | $3,250/mo
- Savings → $6,000/yr | $500/mo
- Investments→ $9,000/yr | $750/mo
- Giving/Debt → $6,000/yr | $500/mo
Take-home $100,000/year ($8,333/mo):
- Needs → $65,000/yr | $5,417/mo
- Savings → $10,000/yr | $833/mo
- Investments→ $15,000/yr | $1,250/mo
- Giving/Debt → $10,000/yr | $833/mo
5 Practical Steps to Improve Your Finances
1. Track your spending for 30 days. Know where every dollar goes.
2. Build an emergency fund → start with $1,000, then grow to 3–6 months of expenses.
3. Automate savings. Treat it like a non-negotiable bill.
4. Pay down high-interest debt to free up cash flow.
5. Grow your income → side hustles, skill upgrades, or career moves.
💡 Even starting with $50–$100/month makes a difference over time. That’s how everyday people can beat the trends shown in the average income and savings in America 2025 report.
Top Pick Resources
These are two highly recommended tools for managing money wisely.
Both are Amazon Best Sellers with strong ratings, giving you social proof that thousands of people trust and use them successfully.
Soomeet Budget Planner
Amazon Best Seller in Budgeting & Personal Finance Journals
Simple, hands-on design for tracking income, expenses, and savings goals.
Perfect for individuals, couples, or families who want an easy way to stay on budget.
Clever Fox Budget Book 2.0
Amazon Top Rated Financial Planner & Organizer
Structured layout with monthly bill tracking, savings goals, and expense organization.
Great for anyone who wants a detailed, step-by-step budgeting system.
📚 Books by David E. White
Available now in Kindle eBook and Paperback formats on Amazon
📘 HOW TO BUDGET & SAVE
UNLOCK FINANCIAL FREEDOM: SIMPLE BUDGETING STRATEGIES FOR EVERY INCOME LEVEL
This book shows you how to take control of your money with simple steps that help you budget confidently at any income level.
Kindle eBook: https://amzn.to/496Y96M
Paperback: https://amzn.to/4epX4aU
📙 RETIREMENT PLANNING HANDBOOK
Your Guide to Financial Freedom, Health, and Happiness in the Golden Years
This guide helps you prepare for a secure and healthy retirement with practical financial and lifestyle strategies.
Kindle eBook: https://amzn.to/47yDO9m
Paperback: https://amzn.to/4lptFQp
📗 PERSONAL FINANCE FOR TEENS AND PARENTS
How to Budget, Save, and Invest as a Family for a Lifetime of Financial Success
This book helps families build financial confidence together through budgeting, saving, and investing as a team.
Kindle eBook: https://amzn.to/49bmFnh
Paperback: https://amzn.to/4otKmMk
Affiliate Disclosure
This post contains affiliate links. If you make a purchase, I may earn a small commission at no extra cost to you. Your support helps me keep sharing helpful content.
Disclaimer
The insights shared in this blog reflect my research, professional perspective, and personal experience as an educator, author, and 20-year business owner. This content is not a substitute for financial advice. Please consult a licensed advisor for guidance tailored to your situation.
Read Next
1. [Creating Your Retirement Bucket List: Dream it, Do It].
2. [How to Budget & Save: How Long Will Your Money Last?]
3. [The Best Financial Advice to Follow Is Still True Today: Always Have Cash]
About the Author
David E. White is a U.S. Army veteran, author, blogger, and financial educator with over 20 years of experience as a business owner. Through his company, NEW Vision, LLC, he empowers teens, singles, families, and retirees with practical strategies for budgeting, saving, investing, and retirement planning, making financial success possible for everyone.
NEW Vision, LLC
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