Emergency funds prepared by just a quarter of Americans

Emergency Funds Rare Among Americans

Emergency funds are a rarity in these rough economic times, as there is practically nothing left for Americans to save for the rainy days.

A recent survey by Bankrate.com revealed that just 24 percent has allotted at least six months of savings and another 24 percent did not have an emergency fund at all. It looks particularly grim for the 6.2 million Americans who are unemployed in case they need some emergency money.

At least 46 percent said they have emergency funds but usually just enough for three months, while 22 percent barely have three months covered for expenses, the survey said.

"The majority of Americans still have much work to do in building an adequate emergency savings cushion," said Bankrate senior financial analyst Greg McBride. He said that those who have emergency funds are likely in the 50s and 60s but most of them have enough money to last six months.

Bankrate asked Americans about their concern about mounting debt. Roughly 22 percent of those surveyed said they are more comfortable with their debt situation now than one year ago, suggesting a more optimistic outlook as the economy recovers.

But what people feel and what they have saved for the rainy days  are different and the savings rate of Americans are nowhere near ideal. Lacking emergency funds can hit the jobless the hardest.

"Over 6 million people have been out of work longer than six months, yet only 24 percent of Americas have at least six months' expenses in an emergency fund," said McBride.

In contrast to older Americans, adults younger than 30 are most likely to have no emergency funds created at all.

Posted by James Fried on Tuesday June 21 2011, 6:18 AM EST. Ref: PRNewsWire. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0