A new study conducted by Bankrate.com suggests that the majority of Americans are not financially ready to deal with emergencies. Analysts suggest that Americans save enough to cover their expenses for six months. However, the study found that only 24% have enough savings to cover six months of expenses. Additionally, 24% of Americans have no money saved for emergencies. The findings are slightly surprising because the economic downturn and high unemployment rates have demonstrated the need to save for emergencies. The weak economy and unemployment have also made it more difficult for Americans to save significant amounts.
People who are most likely to have no money saved for emergencies include young adults under 30 and people who earn under $30,000. High-income earners and those aged 50 to 70 are most likely to have emergency savings to cover six months of expenses.
The study also found that Americans’ feelings about their financial security have decreased slightly in June. Also, 26% feel better about their debt than they did in 2010, while 19% feel worse about their debt.
Dave Carpenter, Americans’ Rainy-day Plan: Hope It Doesn’t Rain, https://today.msnbc.msn.com/id/43470019/ns/business-personal_finance/ (accessed June 22, 2011).