63% of Americans don't have $500 in savings for an emergency

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Despite financial advisers’ oft-repeated advice that we should have in savings an amount that’s the equivalent of at least 3 months’ income/salary, Americans simply refuse to save.
I’ve posted on this again and again on FOTM. See:

Here I am, once again sounding the alarm like Cassandra, with the latest shocking statistics on the financially dangerous and irresponsible way most Americans choose to live.
precipiceMaggie McGrath reports for Forbes, Jan, 6, 2016:

  1. A new Bankrate.com survey found that 63% of Americans do not have enough savings to pay for a $500 emergency, such as a car repair, veterinary or medical bill. Only 37% of Americans have at least $500 in savings! For the other 63%, to pay for a $500 emergency they would have to resort to measures like cutting back spending in other areas (23%), charging to a credit card (15%), or borrowing funds from friends and family (15%) in order to meet the cost of the unexpected event. Bankrate senior investing analyst Sheyna Steiner asks: “I did wonder what would happen if it was $10,000, what would the answer have been then?”
  2. Magnify Money released the results of a study that found that 56.3% of people have less than $1,000 in their checking and savings accounts combined.

  3. Pew Charitable Trusts reported that 1 in 3 or 33% of American families have no savings at all.

H/t FOTM‘s josephbc69
See also:

~Eowyn

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0 responses to “63% of Americans don't have $500 in savings for an emergency

  1. I can imagine most can’t afford having dental insurance! Hell we’re paying $862 mo. just for our medical coverage for 2 ppl ! No dental ! That’s just our Premium! Our deductible is $12,000 a yr ! That’s right! $12,000 out of pocket before insurance even picks up anything! Thanks to the “Affordable Health Care” What a bunch of bull hockey! Affordable my ass! It’s jumped from $711 a mo. just 2 yrs ago! How can the average working person afford anything, let alone saving anything for a rainy day, car repair, medical emergency Anything! My daughter, who is a full time working single mother of 2 can’t even get assistance! She makes too much money at $14 an hour! You think with 2 kids, car insurance, health insurance, utility bills, house payments, etc that she could save any money ??? Hell no !!! Our system sucks more every day. Our government has made it so that families have to work 2 jobs to make their living ! There are less stay at home mothers, the federal school system is racing our children ! The are destroying the “family!” Doing it systematically !

     
  2. Correction > *raising our children

     
  3. We could make immigrants (legal and non legal) ineligible for Social Security benefits and welfare. Immigrants should have to work in this country and pay taxes for three generations to become eligible for any government welfare programs. That would make them work harder.

     
    • I agree, when we, the tax payer have to work 40 quarters or 10 years before we can even think of drawing SS when of age.
      But they can come in and their elders can draw our money.
      The government has okayed them to make up a SS number, imagine that mess when the real owner comes forward.
      Then SS has been attacked when in 2012, BO took people out of unemployment and put them under SSDI to make their unemployment numbers look better.
      We have been lied to and abused for 71/2 years now.

       
    • How would this improve the dismal state of Americans’ PERSONAL savings? I’ve been paying attention to the very low rate of U.S. personal savings for decades, which have been in the low single digits — barely above 1%; sometimes even minus % — since the 1980s.

       
  4. Thanks, Democrats!! (That’s some “recovery” you guys gave us there… )

     
  5. Joanne Rosemarie

    Same story here in Britain where our culture mirrors yours to a great extent. It is almost impossible to get a decent job where you’re not on the minimum wage. I was in that position and trying to retrain to better myself, and there’s no guarantee in that either. I have always tried my best to do the right thing but sometimes you cannot win, as in my previous job the manager wouldn’t let me take owed holiday which I needed to take to go on a residential university course. I was at my wits end and couldn’t see a way out, there was bullying involved too and I tried to fight them for my job but to no avail.
    I chose to finish my degree and I’m just fortunate I had my parents support in the situation as they knew it was constructive dismissal, they told me to leave as it wasn’t worth my health. Now I just want to move forward and hopefully get the right position soon.

     
    • Joanne,
      Minimum wage jobs (MWJ) are meant to be stepping stones, not a person’s lifelong career. You did the sensible thing — work in those jobs while you’re acquiring better skills via a university degree, as I did (graveyard-shift waitress, fastfood worker, door-to-door Avon sales, deep-fry cook & dish-washer) to put myself through college, then grad school.
      And a belated very warm welcome to FOTM to you from across “the pond”! 🙂

       
      • Joanne Rosemarie

        Hello and thank you! Yes indeed, it was my plan to progress as soon as I could. I didn’t really mind the money that much because I was lucky to have a job and be able to do it. Both my parents worked (my dad still is) hard as did my my deceased brother. They always said you’re the smart one Jo, you’ll be fine. I’m poor at the moment, but I have a bed to sleep in and food in my tummy so I’m blessed. I’m blessed to have lovely parents even though they’re divorced we all get on these days. I just put my trust in God to help me stay positive and focused.
        Thank you all at FOTM xxx

         
  6. scary…and considering this country wants to get rid of cash…all “money” you have they will know about…so you won’t even be able to save money under your mattress. If the govt or bank locks your account, you will have nothing…they will control it all.

     
  7. ” 56.3% of people have less than $1,000 in their checking and savings accounts combined.”
    I have to wonder what percentage of America is living on less money than their basic needs cost every month. THAT figure makes “Savings” kinda irrelevant to me. (BTW-I have a truck for sale…)

     
    • yep, one of the reasons credit card debt is so high today

       
      • In MY World,it’s the cost of living that causes debt. When you have 12 bills that NEED to get paid,and can only AFFORD 10,which ones do you cut? (Already tried to get them to take smaller payments-NO deals without late fees and interest. Somehow,they ALL think THEY are the only expenses I have. Make partial payments? If you can arrange that,you’re even MORE behind the next month,and there’ll be the late fee and interest again. My “cut list” is gas for the truck (My friends and family have become accustomed to giving me a few dollars for gas if they need me for anything else.),some of the groceries (I never even get to the meat counter anymore-if I go there first,I have to skip some OTHER necessities. If I save that for last I’m broke before I get there.).,and cut back on my meds if I need to (There are a couple I can do without for a while. I only missed covering all my bills this Month by $35.00! (All except the Hospital,Diagnostic Imaging and My Dr. I don’t figure them in because I’ll pay one or more off next time I sell another truck or trailer.) I’m okay though;-There are others I know who REALLY have it bad!.
        BTW-My Brother Dutch is sending me a hard drive and more memory for my “good” computer,and it’ll have Windows 10 too.(His computer guru says W-10 comes with everything set to “Yes” by default. If you set ’em to “No” it shuts down the information funnel to NSA.) We’ll see…..

         
        • “In MY World,it’s the cost of living that causes debt.”
          according to our esteemed govt we basically have no inflation, even though items we purchase today cost way more than they did a generation ago or even a few years ago. I know when I buy groceries for my family the money doesn’t go as far as it once did and not only that, you get less in quantity and quality (chemicals wrapped in plastic and GMOs passed off as “food”). Home ownership is at an all time low because few can afford the costs, while the chinese are buying up our houses left and right. Speaking of china, clothing today (basically everything) is cheaply made…the fabric is so thin you can see through it. Not only does that create conditions for lack of modesty but also creates more profit because the manufacturers use less fabric to create clothing and charge more on top of it. That’s why I like vintage shops, thrift shops, organic clothing (when I can). Vintage is the way to go because you have clothing that was made with care and concealed the body correctly and was made (depending on how far back you go) without GMOs bathed in pesticides.
          I feel ya truckjunkie, the cost of living is ridiculous. It is difficult to live in this country where the value of the dollar decreases every year while the cost for everything goes up. We have the minimum wage freaks who want a 50% pay raise for doing what machines can do, but no one else is getting a 50% pay raise for doing skilled labor….makes sense. IMHO, all of this means TPTB want to rid the country of the middle class and without that buffer, socialism (then communism) will thrive which means govt will control everyone’s affairs.

           
  8. The government doesn’t want the average person to save. Saving is discouraged by low interest rates etc. They want you to spend. The government has the idea one can spend their way out of a recession etc. Savings make a person independent of the government to a certain extent. When people have savings the government becomes nervous and must start figuring out ways to get your savings away from you. They call it redistribution of wealth. Today, slavery is for everybody.

     
  9. i’ve never been able to have savings. i’ve had to have 2 jobs at times between raising 4 kids. almost everyone i know is 2 paychecks away form homelessness. this has all been planned by the elites to get rid of the middle class.

     

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