Jamela Adam

Thu, Jun 19, 2025, 9:02 AM4 min read

Gen Z hasn’t had the smoothest entry into adulthood, especially with the COVID-19 pandemic, inflation, rising homeownership costs and political uncertainty. And with so much going on in the world, you’ll want to have a financial cushion to fall back on just in case. But exactly how much should you have in savings?

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Here’s what’s realistic for a middle-class Gen Zer when it comes to savings, and how to build a solid financial foundation without feeling overwhelmed.

When people talk about savings, they usually mean more than just a standard bank account. It can include:

• Emergency funds

• Retirement savings, like a Roth IRA or 401(k)

• Short-term savings for things like travel, moving, or a new laptop

• Brokerage accounts

Depending on your income, lifestyle, and goals, the right mix will look different for everyone. But if you’re a middle-class Gen Zer who’s earning somewhere in the $40,000 to $60,000 range, here’s what to aim for.

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Your savings should ideally cover a few different areas of your life: emergencies, long-term goals like retirement and short-term plans you’re working toward right now.

Ideally, you’ll want to have three to six months’ worth of expenses in a high-yield savings account. In other words, if your monthly costs add up to $2,000, you’d be aiming for somewhere between $6,000 and $12,000. Note that your emergency savings are intended for emergencies only, like car repairs, medical bills, or sudden job loss. Avoid dipping into it for things that aren’t urgent.

Financial planners often suggest saving around 15% of your income for retirement, but if you’re just starting out in your career and don’t have much to save, even 5% is a great start.

A common benchmark is to have your annual salary saved for retirement by the time you turn 30. So if you make $100,000 a year, the goal is to have at least that amount saved up. That includes investment growth too, not just your personal contributions.

This is for things you know are coming up soon (like moving into your own place, buying a car, or taking a trip). You don’t need a specific number here, but it helps to set goals and work backward. If you want to take a $1,500 trip in six months, saving $250 a month gets you there.

The median net worth of people under 35 (including Gen Z and some millennials) is around $39,000, according to the 2023 Survey of Consumer Finances. That number doesn’t tell the whole story, though, since many Gen Zers have barely started their career, and some are still in school. For example, if you’re under 27 and still trying to figure out what you want to do, you may not have $39,000 lying around.