AI Steps In as Young Savers Struggle to Get Ahead

New Research from Cleo AI Shows Young Adults Turning to AI to Learn and Build Better
Money Habits as Savings Fall Short

NEW YORK, Jan. 13, 2026 /PRNewswire/ -- As saving becomes harder for millions across the US, new research from Cleo shows that young adults are increasingly looking to AI to help them manage their money and build better financial habits.

The study, which surveyed 5,000 US adults aged 28 to 40, found that most people are saving far less than they would like. Against this backdrop, interest in AI-powered money management is growing: one in six respondents say they feel 'curious' about using AI to manage their finances, while a further 10 percent say they are 'excited' by the possibility.

At the same time, confidence in personal finance remains low. More than a third of respondents say they struggle with self discipline when it comes to money, with impulse spending continuing to derail savings plans. 78% of Americans believe they could improve their financial knowledge, highlighting a clear gap between good intentions and day-to-day execution.

That pressure grows with age. Adults aged 28 to 34 in the US save an average of $220 per month and are 15% more likely to be satisfied with their savings compared to those aged 35 to 40, who save $165 per month on average. The findings suggest that financial pressures compound over time, while access to effective support does not keep pace as people move through early adulthood.

Rising Interest in AI for Managing Money
AI is emerging as a practical tool to help people regain control of their finances. Many respondents say they are comfortable using AI for everyday money management. Nearly 53% percent of Americans would trust AI to advise them on disposable income. More than half are open to AI automatically moving money to avoid overdrafts, 52 percent, or managing routine bill payments, 48 percent.

"The reality is that saving feels almost impossible for a lot of young people right now," said Barney Hussey-Yeo, CEO and Founder of Cleo. "Costs keep rising, pay has not caught up, and debt follows people for years. Most people are not failing at money, they are being left to figure it out alone. Cleo was built to change that by giving people clear, practical guidance they can actually use day to day."

Younger savers are leading this shift. Adults aged 28 to 34 are five percent more confident than those aged 35 to 40 in using AI powered financial tools, suggesting a growing willingness to adopt new approaches to building consistent and sustainable money habits. Trust is the next hurdle for AI adoption, with nearly a quarter, 22 percent, preferring to start small and see clear proof of value first.

As Americans face ongoing cost pressures, moments of financial flexibility remain rare. With mid-year changes to US tax policy expected to result in larger-than-average tax refunds this filing season, many young adults may receive a one-off cash boost, a moment where having clearer guidance and support could help translate short-term opportunity into longer-term financial progress.

"AI is not a replacement for a financial adviser," Hussey-Yeo added. "But it can be there every day to make money feel more manageable," he added. "Used properly, it gives people a clearer picture of what they can afford and helps them build better habits over time."

The research also highlights stark regional differences in savings across the US. For example, average monthly savings in the Northeast (Maine $533, New Hampshire $462, Vermont $419) are more than three times higher than in parts of the South and Midwest (Mississippi $88, North Dakota $59, South Dakota $73). Residents of Maine save over 350% more per month than those in North Dakota, the lowest-ranked state.

About Cleo

Cleo is the world's first AI financial assistant who transforms the complexity of money into simple, honest conversations. With a unique blend of predictive intelligence and human understanding, Cleo is building a future where smart financial decisions are within everyone's reach. 

Cleo speaks like a friend but with expert-level insights. She remembers spending patterns, predicts needs, and delivers radically personalised guidance through budgeting, saving, credit-building, and intelligent money coaching. Cleo normalises money conversations and is available 24/7—because understanding your finances shouldn't require a finance degree. 

Founded as a pioneering AI chatbot, Cleo has evolved into a powerful financial intelligence platform that empowers millions to make smarter financial decisions.

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SOURCE Cleo AI