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59% OF U.S. ADULTS CANNOT COVER A $1,000 EMERGENCY EXPENSE
A recent
Bankrate survey reveals that 59% of U.S.
adults cannot cover a $1,000 emergency expense using savings. This financial
vulnerability is exacerbated by inflation and rising interest rates. The survey
also found that 25% of respondents would need credit cards to manage unexpected
costs, while 36% have experienced a significant unexpected expense in the past
year.
The report also highlights disparities across income
and age groups. While 60% of households earning $100,000 or more annually could
cover a $1,000 expense, only 37% of those earning less than $50,000 could do the
same. Age also plays a role, with just 34% of Gen Z adults (ages 18-26)
reporting sufficient emergency savings compared to 48% of Baby Boomers (ages
59-77). Additionally, 20% of respondents said they would cut spending on other
items to manage emergencies, while 10% would turn to friends or family for help.
These findings stress the vital need for individual
financial planning and broader economic measures to address the systemic
challenges preventing modern Americans from building a financial safety net.
2025 Emergency Savings Report (Bankrate, 1-23-25)
59% Of Americans Don't Have Enough Savings For A $1,000 Emergency (ZeroHedge, 1-25-25)
Source:
Bankrate Emergency Savings Surveys
Note: Not
all percentages total 100 due to rounding.
40% OF U.S. ADULTS ARE UNABLE TO AFFORD A $400 UNEXPECTED EXPENSE
This is a continuing problem, as seen from this 2018 report.
The middle class in this country is in crisis. According to the Federal Reserve’s Report on the Economic Well-Being of U.S. Households in 2017, about 40 percent of adults said that if faced with a $400 unexpected expense, they would either not be able to pay it or would do so by selling something or borrowing money.
Additionally, less than 40 percent of nonretired adults think they are on track in saving for retirement and 25 percent have no retirement savings or pension at all, the report says.
These results show that “millions of Americans are in desperate need of establishing a savings habit before it’s too late,” said Greg McBride, chief financial analyst at Bankrate.
Report on the Economic Well-Being of U.S. Households in 2017 (Federal Reserve)
Fed survey shows 40 percent of adults still can’t cover a $400 emergency expense (CNBC, 5-22-18)
63% Of Americans Don't Have Enough Savings To Cover A $500 Emergency (Forbes, 1-6-16)
.