Nearly 40% of Americans have less than $500 in cash savings, survey shows

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A woman plans to divide her money into coins and a piggy bank, symbolizing budgeting, financial planning, saving, and smart money management. (Getty Images) 

Nearly 40% of Americans said that they have less than $500 in cash savings, according to a recent survey.

Additionally, more Americans said they are seeing their savings shrink amid ongoing inflation, high interest rates and a shaky job market. 

What they're saying:

"When prices rise and budgets tighten, something has to give, and often that something might be their savings. That’s certainly the case in many households today," Matt Schulz, a LendingTree chief consumer analyst, said.

Americans are saving less

Dig deeper:

Monthly savings habits for Americans have changed as prices for everyday goods have increased.

What’s more, about 1 in 5 people said they aren’t able to save consistently, and that is especially true for those who make less than $30,000. 

A majority of people who were surveyed (34%) said the main reason they are not able to save more is due to the cost of living. 

"When you have to spend more on gas and groceries, for example, it means you have less to put toward other priorities, such as emergency savings, high-interest debt, retirement investments and other financial goals," Schulz added. "That means less of a financial cushion in case of an emergency, and that can be scary."

Thirteen percent of respondents said they had to withdraw from their savings to pay for food and essentials, while 10% said they had to pull money for emergency expenses. 

By the numbers:

• 29% say they have less cash savings than a year ago
• 25% say they actually have more than a year ago
• 40% say it’s about the same

Here’s how much people are putting into savings every month: 

• 15% say $25 to $49 less
• 18% say $50 to $99 less
• 16% say $100 to $249 less