Roadmap to Generational Wealth: Savings
What you need to know about Savings
Savings can provide a cushion for emergencies, prepare families for future expenses, and support long-term wealth building. In the Federal Reserve's 2025 Survey of Household Economics and Decision making, 55% of adults had savings to cover three months of expenses. Among Black adults, that figure was 38%, compared with 61% of White adults.
These differences are not only about financial discipline. A household's ability to save depends on the money left after basic needs and access to affordable financial services. FDIC data also show that Black households remain more likely to be unbanked than White households.
The NAACP recognizes savings as part of closing the racial wealth gap. Its Inclusive Economy agenda supports opportunities for Black families to build financial security and prepare for emergencies.
How to build and protect your savings?
- DO set a realistic emergency savings goal based on your essential expenses and build toward a larger cushion over time.
- DO automate part of each paycheck or recurring deposit so saving becomes a consistent habit.
- DO separate savings by purpose, such as emergencies, travel, education, or home repairs, to make each goal easier to manage.
- DO compare APYs, fees, minimum balances, and withdrawal terms before choosing an account. Regulation DD requires disclosures that help consumers compare deposit accounts.
- DO save ahead for predictable expenses like insurance premiums, car repairs, school costs, or holiday spending.
- DO increase your savings when your income rises, or a recurring debt payment ends.
Don'ts:
- DON'T put emergency savings into volatile investments or accounts that could lose value or limit access when you need the money.
- DON'T assume money held through a payment app or financial technology company is automatically federally insured. Coverage depends on where and how the funds are held.
- DON'T keep large amounts of savings as cash at home because it can be lost, stolen, or destroyed and is not federally insured.