Most Americans Lack Sufficient Emergency Savings
With so many Americans living paycheck-to-paycheck, it isn’t surprising that U.S. savings rates are at very low levels. This is especially worrying when it comes to emergency savings, since these funds provide a lifeline desperately needed by people living paycheck-to-paycheck.
A new study from Bankrate finds that just 22% of Americans have an adequate emergency savings cushion, (enough to cover at least six months’ of expenses).
Bankrate said that 21% have less than three months’ expenses saved — and only 15% have enough to cover between three months’ and five months’ expenses.
Twenty nine percent of Americans have no emergency savings whatsoever. That number grew from 26% in just the past year.
One surprise from the report: adults under age 30 are more likely than any other age group to have savings that would cover up to five months’ expenses. So much for the young being the frivolous ones.
If you’d like to stretch your paycheck further, and save more, stop in at your credit union. With your CU’s help, you may find that you can save more than you think.
Copyright Today’s Credit Unions