Claim: Former Democratic vice presidential candidate Minnesota Governor Tim Waltz spoke about his party’s economic message as President Donald Trump’s tariffs ruled the headlines.
Many Americans have financial fears that Trump’s campaign tapped before the 2024 election, Waltz told CNN’s Jake Tapper on April 6.
“They are worried that their financial future will be very unstable and that they will be able to get out of their way under them,” Waltz said. “Level half of Americans have $1,000 in savings.”
Politifact’s ruling: Almost incorrect. Research shows that Americans are not financially stable, but Waltz exaggerated the health of American savings accounts by giving the impression that almost half of them have anemia reserves.
Walz’s team did not respond to Politifact’s request for comment. I found data on this topic in the Forbes survey in August 2024. This reported that the proportion of Americans under $1,000 in savings accounts is close to 28%.
The savings of about a third of Gen Z and Millennials are less than $1,000, the findings show. The number of older generations is decreasing. The savings of 27% for Generation X and 20% for Baby Boomers are under $1,000. However, it reports savings of less than $5,000, just over half of both generation groups.
Other surveys also featured similar findings.
The latest consumer financial survey based on 2023 Federal Reserve Bank data from 2022 concluded that the median savings for Americans that year was $39,000, without stocks or real estate. They also found that 99% of families have at least one bank account, stock, bond, or other type of financial assets as savings.
Data did not control the savings account in particular. However, in trading accounts that can include savings, check market accounts, the median holdings were $8,000. A survey by consumer finance services company Bankrate said 40% of Americans would use their savings if an emergency cost of $1,000 is insufficient, but 41% are not enough to cover their savings. It also discovered that about 37% of people have been immersed in their savings over the past year. Of that 37%, more than half have withdrawn more than $1,000.
Walz’s statistics are exaggerated, but the investigation supports the notion that Americans struggle to save.
“We are essentially a salary-to-pay nation,” Bankrate senior economic analyst Mark Hamrick said in a press release. “Despite the decline in unemployment and steady growth, few Americans are equivalent to financial safety nets to cover unavoidable unforeseen costs. This is one of the consequences of price increases due to inflation.”
Forbes found that respondents cited increased costs of living as the main reason they couldn’t save any more.
Personal finance experts recommend saving at least three months of living expenses. Gary Bertelles, an economist at the Brookings facility, said most advisers should be a normal monthly spend of around three to six months, just a person’s emergency savings balance.
Bankrate found that 41% of Americans have at least three months’ worth of savings.
