Here's How Much the Average Rich Person Has in the Bank

When you think of rich people, you probably think of people with a lot of big, expensive stuff: multiple houses, cars worth six figures, and yachts to drive them to their private islands. But most of them also have money they just sit on. They keep money in checking and savings accounts just like you and I do -- except obviously they have a lot more.

If you've ever been curious, the Federal Reserve's latest Survey of Consumer Finances gives us a little insight into just how much rich people actually keep in the bank.

How big is that bank account?

We all probably have our own definitions of what constitutes a rich person, but for this discussion, we're going to look at households whose usual income falls in the top 10% of all Americans. For 2022, those in the 90th percentile made about $245,400 on average.

If you're wondering how this compares to the rest of the country, here's a breakdown of the average usual income for selected percentiles. Keep in mind these are household figures, not individual ones.

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I probably don't need to tell you the richest households have no problem stashing money away. But to get a sense of just how much more they have than others, it helps to look at what people of other income levels have saved on average. So here's a breakdown based on the latest data from 2022:

The general pattern isn't surprising. A higher income makes it a lot easier to stash money in the bank. What is surprising is how much more the richest 10% have saved compared to the bottom 20%. The wealthiest 10% earn about seven times more than the bottom 20%, yet their savings are 124 times higher. That's quite the difference.

How to start growing your savings

I won't sit here and pretend you can penny-pinch your way to a six-figure bank account balance if you're currently in the bottom 20% with $900 or less in your checking account. It's probably not going to happen. But there are a few things you can try that could help you get your personal finances on a firmer footing.

First, choose the right accounts for your money. A lot of brick-and-mortar banks have maintenance fees and they don't pay you a lot in interest. That's bad news for anyone, but especially those who don't have a ton of extra cash.

Online banks, on the other hand, are known for offering high interest rates on savings accounts and some offer interest on checking accounts as well. Most don't charge maintenance fees or have minimum balance requirements either. Switching to one of these could potentially put more money in your pocket because you'll be able to ditch any monthly bank fees you're paying now, and you could earn more in interest.

You could also look into community and government programs, like Supplemental Nutrition Assistance Program (SNAP) benefits, that help low-income families with their everyday expenses. This could potentially free up a little extra cash you could put into savings.

And if cutting your expenses back isn't possible, see if you can find ways to boost your income. You could try a side hustle if you have some spare time. Or see if you're able to negotiate a higher salary at your current job.

Saving regularly is ideal, but if you're not able to do this, set aside money when you can. Even if it's just $5 or $10 here and there, it adds up. Over time, you can work toward an emergency fund that can help you avoid major financial setbacks when unexpected costs come up. Once you've got that taken care of, you can start working toward some of your longer-term goals.