What Savings? 1 in 4 Americans Barely Set Aside 5%

What Savings? 1 in 4 Americans Barely Set Aside 5%

Rent. Car payments. Student loans. Utilities. Groceries. The occasional night out.

For many, stretching that paycheck can feel never-ending—not to mention daunting.

And if you’re having trouble figuring out how you're also supposed to find room in your budget for savings, you’re not alone.

According to a new survey from Bankrate.com, more than one-third of participants between 18 and 29 years old (the youngest age group surveyed) set aside only 5% of their income for savings—with about one in five acknowledging that they aren’t saving a single penny.

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But there was one bright spot to the findings: A quarter of middle incomers—those making between $50,000 and $75,000—are saving the most, at a rate of about 15% of their salaries.

So what's behind their dedication?

"Middle-class Americans (have) to do the saving, because nobody is going to do it for them," said Greg McBride, CFA, Bankrate's chief financial analyst. "They don't have the six-figure income to fall back on for expenses," including household emergencies, long-term health care, children's education or their own retirement.

By comparison, only 17% of high earners surveyed—those banking $75,000 or more a year—set aside as much as those super-saving middle incomers.

RELATED: How Much of My Paycheck Should I Save Each Month?

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