Only 1 in 3 Americans has an Emergency Fund of $1000
I can't remember NOT having any savings, although it times it wasn't much - with even the odd temporary overdraft. But then, I'm getting on - and the culture of saving seems to be dying out.
One statistic that caught my eye recently was that 64% of Americans don't have $1,000 in a savings account to cover emergency expenses. That's nearly two-thirds of the population surviving between paychecks - and in a county with notoriously expensive healthcare.
This statistic comes from a new survey conducted by The National Foundation for Credit Counseling (NFCC) - reported here. The NFCC study surveyed 2,700 Americans to determine how much money they had set aside in the event of a financial emergency that cost $1,000. Of that population surveyed, only 36% said they would be able to turn to their savings to pay for the expense.Those individuals without savings said that they would unfortunately have to turn to an outside source to ask for money if they were faced by an unexpected expense.
The majority said that they would have to consider the following options:
Although the study might have been a bit biased in selecting its sample pool, the fact that such a high number of participants are lacking a relatively modest $1,000 in savings is still alarming. and is clearly something that should be addressed - for example, through better financial education.
This seems to be part of a wider picture of poor financial provision by households in the US. An earlier study by the NFCC found that 30% of Americans have zero dollars in non-retirement savings. A separate study by the National Bureau of Economic Research found that 50% of Americans would struggle to come up with $2,000 in a pinch.Continued on the next page