Many Americans are doing their best to save, but a new survey shows those savings often get spent just to cover everyday life. From surprise bills to rising rent, tapping into savings has become the norm, not the exception. Here’s what the data says about this shift and why using your savings might not be a bad thing after all.

Americans are saving but struggling to keep it that way

During National Financial Literacy Month, a new survey shows that while many Americans are saving, they’re also spending those savings just to stay afloat.

According to a recent survey by Current and Talker Research, nearly seven in 10 Americans say they feel behind on their savings goals and nearly half (47 percent) don’t think they’ll ever catch up.

Despite feeling behind, many Americans are still managing to save, though it’s often not as much as they’d like.

Why Americans are dipping into their savings

It’s no surprise that things like unexpected expenses are a major factor in why people are tapping their savings accounts. 

Almost half of survey respondents said they dipped into their savings for surprise costs, while 36 percent used their savings for everyday purchases, 30 percent for emergencies and 23percent for rent or mortgage payments. Only 18 percent said they were using their savings for the things they had originally been saving toward.

In fact, 63 percent of Americans with savings have already had to withdraw funds this year and nearly one in five have done it five or more times.

The result is that many savings accounts are shrinking, not growing. While the average person is saving about $496 per month, 30 percent of respondents are saving $200 or less and a quarter of Americans have a smaller savings balance than they did at the start of 2025.

Generational differences in saving habits

When it comes to generational trends, there’s a clear divide. About 30 percent of Gen X respondents said their savings had decreased, the highest of any age group. Millennials were the least likely to report a drop and Gen Z was the most likely to report an increase in savings.

So why the difference? Experts suggest that younger generations may be benefiting from newer financial tools like online banking apps that offer higher savings rates and fewer fees than traditional banks.

Why using your savings might not be so bad

Despite the challenges, many experts say Americans should be proud of their efforts. As Erin Bruehl, vice president of communications at Current, notes: “Americans are demonstrating incredible resilience and commitment to saving, even in challenging times.”

The fact that so many people are dipping into their savings doesn’t necessarily mean they’re failing. 

Bruehl explains that savings accounts are doing exactly what they’re meant to do: “Over 60 percent of people have needed to use their savings this year, highlighting exactly why Americans are smart to try and build this financial cushion. Their savings are successfully serving their intended purpose — helping navigate both unexpected costs and ensuring they can maintain their essential needs.”

Tips for when saving feels tough

Despite economic pressures, the survey shows that Americans are committed to saving, even if it means tapping into their accounts along the way. Whether it’s for unexpected costs or simply keeping up with life’s challenges, savings are working as intended, offering a safety net during tough times.

Building your savings doesn’t have to feel overwhelming. Start by setting small, realistic goals, even saving just $10 a week adds up over time. Automate transfers to a savings account so you’re paying yourself first without thinking about it. 

Look for everyday ways to cut expenses, like making coffee at home or canceling unused subscriptions. And remember, consistency is key: even small, steady contributions can grow into a meaningful financial cushion.

So, if your savings aren’t growing as quickly as you’d hoped, don’t be discouraged. It’s all part of the journey to financial stability.