50% of Americans Could Not Pay a Sudden $500 Expense

50% of Americans Could Not Pay a Sudden $500 Expense

50% of Americans Could Not Pay a Sudden $500 Expense

A new report found nearly 6 of 10 Americans do not have at least $500 in their savings account as a cushion against emergency expenses.

The study by financial website Bankrate showed just 41% of Americans surveyed would be able to use savings for an unexpected expense of $500 or $1,000.

20% of respondents said they would use a credit card for the unplanned expense, while another 20% would cut spending and 11% would borrow or accept money from friends and family.

Bankrate said the situation “a persistent American problem of how you should handle your finances and spending”

Almost 50% of Millennials (ages 18-34) said they had $500 or more in savings, while seniors over age 71 were most likely to use credit cards to cover the expense, Bankrate said.

Last year, just 37% of those surveyed said they could cover an extra expense of $500 or more, so this year’s number is an improvement.

A full 45% of respondents reported they or an immediate family had a major unplanned expense in the previous year, a 2% increase from last year’s survey, Bankrate reported.

Financial experts recommend saving 10 to 15% of your salary and having at least 6 months of expenses saved in an emergency fund, Bankrate reported.

Have a terrific weekend.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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