Home New mexico economy Poll finds more than half of Americans can’t afford a $1,000 emergency

Poll finds more than half of Americans can’t afford a $1,000 emergency

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Less than fifty percent of Americans could afford a last-minute $1,000 emergency, like an unexpected car repair or emergency room visit, highlighting how inflation and other factors are hitting people’s finances. Americans.

Bankrate, a personal finance company, published the results from a survey that polled 1,004 American adults in January and found that only 44% had saved enough money to cover an unexpected expense, while also reflecting the highest percentage able to cover such an expense over the last eight survey years.

While that’s an improvement, Greg McBride, chief financial analyst at Bankrate, said it still indicates a majority of Americans cannot afford a potential emergency.

“Borrowing is still high, with more than a third of households having to turn to a credit card, personal loan or family and friends when faced with unexpected expenses,” McBride said.


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Bankrate’s poll showed that 44% of respondents said they could pay for a $1,000 expense with their savings, while 20% said they would charge it to a credit card and pay it on a period of time. Ten percent of respondents said they would borrow from family or friends to pay and a further 4% said they would take out a personal loan.

The 44% who said they could afford a $1,000 expense is the highest in eight years of polls, with numbers hovering between 37 and 41% from 2014 to 2021.

the Economic Analysis Office also found that the national personal savings rate, defined as a percentage of disposable income after people have paid taxes and engaged in their usual spending habits, has declined for four consecutive months. The last rate in December 2021 was 6.9%, down from 7.1% in October and almost 3% since August 2021.

Age mattered little in a person’s ability to cover a surprise expense, with Bankrate’s survey revealing small percentage differences between each generation.

Within Gen Z, ages 18-25, 42% said they could afford a surprise $1,000 expense from their savings. In the older generation of baby boomers, those aged 58 to 76, 44% said the same.

However, Bankrate found that college graduates were better able to withstand emergencies financially, with 59% of college graduates able to use their savings, compared to 40% of those with only a little college and 34% who have no more than a high school diploma.

Inflation is a big culprit, as Bankrate found prices were rising at the fastest rate in nearly 40 years, and many American adults said it prevented them from putting money aside for savings. . In the Bankrate survey, 49% of adults said they were saving less due to the current state of inflation.


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