"For one in three Americans, a single surprise bill could spell financial crisis. That's according to a new survey by Empower, a retirement and financial services company, which found 32% of Americans have no emergency savings set aside. But not everyone is equally short on cash: Gen Zers have a median of $400 in their crisis funds, while boomers have saved up to five times as much."
"Financial advisors recommend saving at least 20% of your monthly paycheck, but this has become increasingly difficult due to rising inflation, high interest rates, and stagnant wages. Americans across the board have little left over each month after their necessities have been paid for. "More than half say saving for emergencies feels 'almost impossible' with how expensive everything is right now," the study said."
"A lack of emergency savings is about to become a real issue for many people, as prices continue to rise due to inflation. In August, consumer prices rose 2.9%, above the Fed's 2% target, according to the Bureau of Labor Statistics' report released last week. With elevated interest rates and rents at an all-time high, housing takes up a major chunk of people's monthly spending."
Thirty-two percent of Americans have no emergency savings set aside. Gen Zers have a median of $400 in crisis funds while boomers have saved up to five times as much. Seventy-five percent of respondents agreed emergency savings are essential for financial security. Financial advisors recommend saving at least 20% of monthly paychecks, but rising inflation, high interest rates, and stagnant wages make that difficult. Forty-six percent report less emergency savings than a year ago and 42% say their savings would not help if they lost their job. Elevated housing costs and slowing entry-level hiring particularly strain Gen Z, which carries record debt.
Read at Fortune
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