42% Of People Say They Avoid Looking At Their Checking Account Balance Out Of Fear – Here's How Much The Average Person Has

Many people find money matters stressful – so much that a hefty portion avoids their financial reality. A MarketWatch survey reveals that 42% of Americans don't check their checking account balance because they fear what they might see. People typically check their phones an average of 58 times per day, but few pay the same frequency to their finances. This avoidance may offer temporary relief but isn’t a sustainable financial strategy. 

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So, what does the typical American's bank account look like? As of October 2023, U.S. households’ average checking account balance is $16,891, but that doesn't tell the whole story. The median balance – where half have more and half have less – is only $2,800. The major difference between the mean and median balances indicates how unequal bank accounts are distributed across society. 

About 13% have over $50,000 in their checking accounts, which significantly bolsters the average.

Here's a breakdown by age: 

Breaking down the numbers by age reveals some interesting trends:

• Under 35: Average balance of $7,355.53, median of $1,600.00
• 35 to 44: Average balance of $15,309.92, median of $2,500.00
• 45 to 54: Average balance of $20,155.22, median of $3,400.00
• 55 to 64: Average balance of $17,515.35, median of $3,500.00
• 65 to 74: Average balance of $24,408.76, median of $3,100.00
• 75 and up: Average balance of $19,517.14, median of $3,300.00

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This data reveals that account balances generally increase with age, likely due to factors such as career progression and accumulated savings.

Additional financial statistics paint a broader picture of Americans’ money habits:

1. Savings: A 2024 survey by Bankrate found that 29% of Americans don't even have enough savings to cover three months of expenses and 27% have no emergency savings.
2. Debt: According to a 2024 Business Insider report, the average American has $104,215 in debt, including mortgages, auto loans, credit cards, and personal loans.
3. Retirement savings: A 2023 Vanguard study shows that the average 401(k) balance is $141,542, but the median is much lower at $39,601, again highlighting the wealth disparity.
4. Financial literacy: The TIAA Institute-GFLEC Personal Finance Index found that, on average, U.S. adults could only answer 50% of financial literacy questions correctly in 2023.
5. Budgeting: A 2023 Harris Poll revealed that 74% of Americans follow a budget.

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The reluctance to check account balances could stem from various factors, including fear of confronting a lower-than-expected number or anxiety about facing spending habits. However, regularly monitoring your finances is crucial for maintaining financial health. It helps you stay aware of your spending, plan for future expenses, and make informed financial decisions.

Financial experts recommend several strategies to overcome this fear:

• Set a regular schedule for checking your accounts once a week.
• Use budgeting apps that can provide a less intimidating way to track finances.
• Focus on progress rather than perfection in your financial journey.
• Seek financial education to boost confidence in managing money.

Remember, your bank balance is just one part of your financial picture. It’s a tool for understanding your current situation and planning for the future, not a measure of personal worth. By facing your finances head-on, you can take control of your financial future and work toward your goals with clarity and confidence.

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