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A Bankrate[1] survey found that only 37% of respondents could cover a <=$1,000 emergency with savings (note: savings, not a "saving's account"). They did, howev

A Bankrate[1] survey found that only 37% of respondents could cover a <=$1,000 emergency with savings (note: savings, not a "saving's account"). They did, however, add that another 23% could cover the expense by spending less on other things. Given that, I'd say a large percentage of Americans do not have plenty of emergency cash. That's not to say most of America is "one paycheck away from the street" like the parent comment quoted... [1]: https://www.bankrate.com/banking/savings/survey-how-americans-contend-with-unexpected-expenses/ https://www.bankrate.com/banking/savings/survey-how-american...

jandrewrogers 8y ago
The 37% makes sense, as that almost perfectly aligns with disposable income data if you assume relatively few people save their disposable income at that percentile (also likely true). Most people I know in that zone would put it on a credit card.
orangecat 8y ago
A Bankrate[1] survey found that only 37% of respondents could cover a <=$1,000 emergency with savings (note: savings, not a "saving's account"). They did, however, add that another 23% could cover the expense by spending less on other things. The exact wording of the question is going to have a significant impact on the results and what they mean. In the real world, if I incur an unexpected $500 expense I'd put it on my credit card, which would get automatically paid from my checking account at the next billing cycle. It's not clear if that would incorrectly categorize me as not being able to afford it.
- enraged_camel 8y ago
  Certain types of expenses cannot be put on credit card though.
TangoTrotFox 8y ago
Like the other study, you're mixing up the phrasing. The question they asked was 'How would you pay for an unexpected expense'? It was not, 'Could you for an unexpected expense using just your savings'? I'd be in the 'reduce spending' camp since I try to avoid touching my savings.

jandrewrogers 8y ago

The 37% makes sense, as that almost perfectly aligns with disposable income data if you assume relatively few people save their disposable income at that percentile (also likely true). Most people I know in that zone would put it on a credit card.

orangecat 8y ago

A Bankrate[1] survey found that only 37% of respondents could cover a <=$1,000 emergency with savings (note: savings, not a "saving's account"). They did, however, add that another 23% could cover the expense by spending less on other things. The exact wording of the question is going to have a significant impact on the results and what they mean. In the real world, if I incur an unexpected $500 expense I'd put it on my credit card, which would get automatically paid from my checking account at the next billing cycle. It's not clear if that would incorrectly categorize me as not being able to afford it.

enraged_camel 8y ago
Certain types of expenses cannot be put on credit card though.

TangoTrotFox 8y ago

Like the other study, you're mixing up the phrasing. The question they asked was 'How would you pay for an unexpected expense'? It was not, 'Could you for an unexpected expense using just your savings'? I'd be in the 'reduce spending' camp since I try to avoid touching my savings.