Here's how much the typical American has saved in cash, at every age

The typical American's savings balance looks very different by age, according to data gathered by Personal Capital .
Personal Capital gathered information from over 318,000 linked money market accounts, CDs , and savings accounts , grouping them by 10-year age brackets to find the median savings balances by age.
The data shows that many Americans are low on liquid, cash savings, which could be a big problem in emergency situations.
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Having liquid cash on hand is essential, but it seems that many Americans aren't keeping much in their savings accounts.

Wealth management company Personal Capital looked at savings balances of Americans at every age, analyzing more than 318,000 savings accounts, certificates of deposit (or CDs), and money market accounts linked to Personal Capital accounts. It doesn't include linked spousal accounts, or other account types like checking, retirement or brokerage accounts.

The median Personal Capital user in their 20s has $3,74o across all three types of savings accounts. Meanwhile, users in their 50s and 60s have $11,228 and $15,193 median balances, respectively. When it comes to financial situations that require liquid cash, like an emergency, Personal Capital's data suggests that younger Americans may be lagging behind.

Here's how much the typical American has saved for retirement at every age Chart Alyssa Powell/Business Insider

Younger Americans arent keeping enough cash on hand for emergencies

Generally, experts recommend keeping between three and six months worth of expenses in a liquid cash account like a high-yield savings account. However, as the economy has faltered during the coronavirus pandemic, some experts are recommending adding even more to your emergency fund personal finance expert Ramit Sethi has recently started recommending 12 months worth of expenses .

According to the Bureau of Labor Statistics data , the average household spent $42,743 last year on essentials alone, including housing, food, healthcare, and transportation. That means the average household spent roughly $3,500 a month to live, not including discretionary spending.

A solid six months of these expenses would mean that the typical household would need an emergency fund of about $21,000. Looking at the Personal Capital data, many Americans don't meet that amount, even if the household were to consist of two people with median savings balances.

Let's face it: Keeping funds in cash isn't the best way to grow money, even in high-yield savings accounts or money market accounts. While cash grows at a modest interest rate in both of these accounts, it certainly doesn't grow the way it could through investing.

But, keeping some liquid savings is critical for emergency planning and saving. Having an emergency fund is the best buffer from needing to take on high-interest debt after a job loss, medical emergency, or family emergency.