Thursday, November 14th, 2019

1 in 3 Americans Have Less Than $500 in Savings to cover Emergencies

Published on July 14, 2016 by   ·   1 Comment

Everybody knows that savings are the backbone of financial security and allow us to support ourselves during emergencies. Yet new data suggests people across the world are finding it increasingly difficult to put a substantial amount of money away, leaving them at risk of falling in to debt and other financial problems.

Bargain Fox recently asked 3560 people how much money they have in their savings account or emergency fund, and 1 in 3 Americans said they had less than $500, while 1 in 3 Brits had less than £100 (comparatively even less). “This might be enough to buffer a few unexpected bills,” says Bargain Fox’s Harsha Kiran, “but anything more catastrophic would result in immediate debt or a budget that would leave them with little to no disposable income.”

1 in 5 Americans have less than $100 in savings, while 45% have less than $1,000.

Only 35.7% of Americans have more than $3,000 in savings.

Women are nearly twice as likely to have less that $100 in savings than men.

Men a twice as likely to have more than $10,000 in savings than women.

Millennials have less overall savings than Generation X and the Baby Boomers.

11.33% of Millennials have over $10,000 in savings, compared to 25% of Generation X and 27% of Baby Boomers.

Half of those with a PHD have $10,000 or more in savings.

Over half of those who do not have any qualifications have less that $100 in savings.

The higher the qualification the more people save on average.

Half of households that have an income of over $100,000, have more than $10,000 in savings.

Half of households with an income of less than $20,000, have less than $100 in savings.

HOW MUCH MONEY THEY HAVE IN THEIR SAVINGS ACCOUNT OR EMERGENCY FUND?

Furthermore only 35.72% of Americans had more than $3,000 saved, and only 24.8% of Brits had more than £3,000. That might be enough to buy an old used car or go on holiday, but does it provide a secure future?

It’s not very encouraging that in two of the supposed most prosperous countries in the world, the average person has so little to support themselves in emergencies. Has everyone turned to credit cards and loans? Are they dipping in to their home equity or retirement funds to prevent unforeseen financial calamities?

The survey shows that overall 45% of Americans have less than $1,000 saved, and 20.95% have less than $100. Likewise 45% of Brits have less than £500, while 32.98% have less than £100. The lowest amount (less than $100 and £100) was the most chosen answer respectively!

Whether it’s poor planning, low income or something else, there’s a clear dividing line between the non-savers and savers, and everyone is saving less across the board. In the US the average personal savings rate has been declining since the 70s, when it was as high as 17% of personal net disposable income. In March this year this was just 5.4%.

Let’s take a closer look a how all of this is reflected in the demographics.

Read More HERE

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Readers Comments (1)

  1. Chuck Bauer Chuck Bauer says:

    But they all have $600 phones




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