{"id":2283,"date":"2025-08-14T15:52:44","date_gmt":"2025-08-14T15:52:44","guid":{"rendered":"https:\/\/ft365.org\/index.php\/2025\/08\/14\/nearly-1-in-4-americans-have-zero-emergency-savings-these-under-the-radar-strategies-can-help-bankrate\/"},"modified":"2025-08-14T15:52:44","modified_gmt":"2025-08-14T15:52:44","slug":"nearly-1-in-4-americans-have-zero-emergency-savings-these-under-the-radar-strategies-can-help-bankrate","status":"publish","type":"post","link":"http:\/\/ft365.org\/index.php\/2025\/08\/14\/nearly-1-in-4-americans-have-zero-emergency-savings-these-under-the-radar-strategies-can-help-bankrate\/","title":{"rendered":"Nearly 1 In 4 Americans Have Zero Emergency Savings \u2014 These Under-the-radar Strategies Can Help | Bankrate"},"content":{"rendered":"
\n
\n

Key takeaways:<\/span> <\/span> <\/h2>\n
    \n
  • Nearly a quarter of Americans don\u2019t have an emergency savings fund. If you\u2019re one of them, that puts you at risk of taking on significant debt. <\/li>\n
  • It can be challenging to start and maintain an emergency savings fund. Determining the minimum you need to save and starting with a savings sprint can help. <\/li>\n
  • Opening a high-yield savings account will help you grow your savings without the temptation to use the funds for day-to-day spending. <\/li>\n<\/ul><\/div>\n

    Try as we might to avoid it, sudden, expensive emergencies can happen to anyone. A pet might need an unexpected vet visit, your car might need a replacement part or you may experience a layoff. That\u2019s where emergency savings come in: By keeping a savings fund that you only use for emergencies, you can have peace of mind knowing you can tackle any big expense that comes your way.<\/p>\n

    While keeping an emergency savings fund is important, if you\u2019re working with a tight budget, it may not be easy for you to put aside a few thousand dollars. In fact, nearly a quarter (24 percent) of Americans say they have no emergency savings, according to Bankrate\u2019s Emergency Savings Report<\/u>.<\/p>\n

    Americans have struggled to save for years \u2014 since 2011, the percentage of people without emergency savings has bounced between 21 percent and 29 percent, according to Bankrate\u2019s Emergency Savings Report, which has tracked people\u2019s emergency savings habits for 14 years. But rising prices since 2022 have made it even harder to save money. While the inflation rate has fallen since its 2022 high, Americans are still struggling with the price of their everyday purchases. Several years of rising prices have led to Americans paying 24.3 percent more for consumer goods since February 2020, when the COVID-19 pandemic began in the U.S., according to a Bankrate analysis of Bureau of Labor Statistics (BLS) data. <\/p>\n

    Inflation wouldn\u2019t sting as much if Americans received yearly pay raises to match, but wages over the last year haven\u2019t grown fast enough to beat inflation, according to Bankrate\u2019s Wage to Inflation Index. If your income has been stagnant and your everyday expenses are growing more expensive, you\u2019ll have limited funds left over to stash away for savings.<\/p>\n

    Without emergency savings, you may need to turn to credit cards or borrow money in a pinch, and that\u2019s what many Americans are doing when in financial need. A quarter (25 percent) of Americans would use a credit card to pay for an unexpected $1,000 emergency expense and pay it off over time, according to December 2024 data from Bankrate\u2019s Emergency Savings Report. With credit card interest rates being over 20 percent, paying off an emergency expense with a credit card over time will cost you significantly more due to interest charges. <\/p>\n

    Snowballing economic factors are making it harder to save, especially for younger generations<\/h2>\n

    In a perfect world, you would save at least 20 percent of your income across retirement accounts, emergency savings and other savings accounts. That\u2019s part of the \u201c50\/30\/20\u201d rule, which advises you to spend 50 percent of your income on necessities, 30 percent on wants and 20 percent on savings. However, many people are likely to be spending a lot more than 50 percent of their income on necessities \u2014 squeezing the amount they can save.<\/p>\n

    Consumer prices rose 2.7 percent year-over-year in June, according to the BLS \u2014 the highest annual inflation rate since February. Americans are also squeezed on housing: Nearly half of renters spend more than 30 percent of their income alone on housing costs, according to the BLS. Similarly, 27 percent of homeowners pay more than 30 percent of their income on housing costs, according to product research company Chamber of Commerce. <\/p>\n

    Add in transportation costs and the rising cost of groceries, and you may easily find yourself cutting into your savings to afford necessities. <\/p>\n

    While many Americans, regardless of age, are struggling to save money, younger generations today are facing additional stressors that are making saving even more difficult. The labor market is showing signs of weakening, and recent college graduates<\/u> are particularly struggling to find work as companies slow down on hiring and as AI swallows up entry-level white-collar jobs, according to the Wall Street Journal. What\u2019s more, their spending on non-essentials hasn\u2019t slowed down. Gen Zers (ages 18-28) are the most likely generation to spend more on travel, dining out and live entertainment year-over-year, according to Bankrate\u2019s Discretionary Spending Survey.<\/p>\n

    Now, Gen Zers and millennials (ages 29-44) are more likely than older generations to have no emergency savings, according to Bankrate\u2019s Emergency Savings Report: <\/p>\n

    Americans who have no emergency savings in 2025<\/strong><\/p>\n

      \n
    • \n

      Gen Zers (ages 18-28):<\/strong> 34 percent<\/p>\n<\/li>\n

    • \n

      Millennials (ages 29-44):<\/strong> 28 percent<\/p>\n<\/li>\n

    • \n

      Gen Xers (ages 45-60):<\/strong> 24 percent<\/p>\n<\/li>\n

    • \n

      Baby boomers (ages 61-79): <\/strong>16 percent<\/p>\n<\/li>\n<\/ul>\n

      The youngest American adults will likely always have less savings than older generations, since they\u2019re relatively newer to saving. But younger Americans are starting their savings journeys today with added financial barriers that previous generations didn\u2019t face to the same extent. Today\u2019s young adults are kicking off their careers with fewer job prospects and high prices. This can take a toll \u2014 46 percent of Gen Zers say money negatively impacts their mental health, at least occasionally, according to Bankrate\u2019s Money and Mental Health Survey. This stress has also led to many Gen Zers feeling that planning for their future is pointless, according to CNBC. Without the motivation \u2014 or the funds \u2014 to save money, more Gen Zers year-over-year have no emergency savings, according to Bankrate:<\/p>\n

      Americans with no emergency savings, 2024<\/strong><\/p>\n

        \n
      • \n

        Gen Zers: <\/strong>29 percent<\/p>\n<\/li>\n

      • \n

        Millennials:<\/strong> 34 percent<\/p>\n<\/li>\n

      • \n

        Gen Xers: <\/strong>31 percent<\/p>\n<\/li>\n

      • \n

        Baby boomers: <\/strong>16 percent<\/p>\n<\/li>\n<\/ul>\n

        How to start \u2014 and maintain \u2014 an emergency fund when high prices make it harder to save<\/h2>\n

        No matter your age, if you haven\u2019t already started saving, it\u2019s vital to start now, even if it\u2019s only $10 or $20 a month. Building savings is a muscle you need to train \u2014 it may be difficult at first, but you\u2019ll be glad to see your progress later. <\/p>\n

        1. Identify your \u2018survival number\u2019<\/h3>\n

        An emergency savings fund should have at least three to six months of expenses stashed away, which is enough to cover most emergencies, like a job loss, car repair or emergency room bill. Saving this amount can be intimidating, but it\u2019s more attainable than it seems. <\/p>\n

        If you spend $4,000 a month on recurring expenses, such as your rent, utilities, phone bill, groceries and transportation, that doesn\u2019t actually mean you need to save $12,000 to $24,000 in your emergency savings fund. Your emergency fund can be based on your \u201csurvival number,\u201d or the minimum amount of expenses you need to survive.<\/p>\n

        \u201cEvery few months or so, I like to go through my budget and identify my six-month survival number,\u201d says Bankrate U.S. Economy Reporter Sarah Foster, who has tracked U.S. wages and inflation for the past several years. \u201cThat means including things like rent, utilities and groceries \u2014 not nice-to-have extras like streaming subscriptions or monthly facials and manicures. This number usually looks different from my regular budget, and that\u2019s the point. It makes the goal feel more realistic.\u201d<\/p>\n

        To know your survival number, check your budget and split your expenses into two categories: necessities and non-necessities. Necessities will include your:<\/p>\n

          \n
        • Rent or mortgage<\/li>\n
        • Utilities, phone and internet<\/li>\n
        • Insurance and health care co-pays<\/li>\n
        • Loan payments, such as a car loan, minimum credit card payments and student loans<\/li>\n
        • Basic groceries, household supplies and pet food<\/li>\n
        • Transportation costs<\/li>\n<\/ul>\n

          Non-necessities will include everything else, including subscriptions, eating and drinking out, personal grooming expenses, hobbies and more \u2014 everything you\u2019re able to cut if you lose your job or otherwise need to fall back on your savings.<\/p>\n

          If you spend $4,000 a month on recurring expenses, you might realize you only spend $3,000 a month on necessities. That means you only need to save $9,000 to $18,000 in your emergency savings fund, which is much more attainable.<\/p>\n

          2. Start with a savings sprint<\/h3>\n

          If you want to start saving for emergencies, you may need to cut down on spending to make room in your budget. But it can be challenging to suddenly cut down on everyday luxuries like ordering coffee out or getting your nails done.<\/p>\n

          The good news is, you don\u2019t need to cut out luxuries permanently. To give yourself a head start on your savings, consider a savings sprint. Try cutting out non-essential expenses for a set period of time, such as four or six weeks. Set a savings goal, such as $500, that you can reasonably meet in that time by cutting out non-essentials. Set that money aside in a separate savings account \u2014 and don\u2019t touch it.<\/p>\n

          When the savings sprint timeframe is up, you can go back to spending money on non-essentials \u2014 but use that time to figure out what is important for you to spend money on. For example, if after the sprint is up, you realize you actually don\u2019t miss spending money on coffee shops, you can continue funneling that money toward your savings. <\/p>\n

          \n
          \"Photo<\/figure>\n
          \n

          Why this saver swears by time-limited saving:<\/strong><\/p>\n

          Jacqueline Chandler, a 32-year-old in Philadelphia, has been saving since she was 14. She tries to keep at least $10,000 in savings at any given time. After paying off her student loans last year, she now has $25,000 in savings. She then went on a three-month savings sprint, where she took on extra hours at work and reduced her spending significantly by cutting subscriptions, new clothing purchases and going out to eat. The limited nature of saving sprints have worked for her because she\u2019s found it\u2019s much easier to save when you have some money set aside already, rather than starting from $0.\u00a0<\/p>\n

          A savings sprint, Chandler says, \u201cmakes it easier to give yourself your own end date, rather than being like, \u2018I have to stop all subscriptions and all shopping to get this emergency fund,\u2019 which isn\u2019t realistic.\u201d<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

          It can be hard to find the motivation to keep saving if you are only putting aside a small amount each month. However, a savings sprint gives you a jump start on your emergency savings, providing a motivational boost to watch your savings grow.<\/p>\n

          3. Make your bank account work for you<\/h3>\n

          You can open a basic savings account at most banks where you keep your main checking account. But keeping your checking and savings accounts close together can make it all too easy to dip into your savings for non-emergencies.<\/p>\n

          Instead, try opening a savings account with a separate bank from the one where you keep your checking account. It takes several days to transfer funds between most banks, which will discourage you from dipping into your emergency savings too easily.<\/p>\n

          Any savings account will work to stash your savings, but you might want to consider a high-yield savings account (HYSA), which will offer a higher interest rate than a traditional savings account, which will help your savings grow even faster. <\/p>\n

          Also, try auto-depositing your savings directly into the account (also known as paying yourself first<\/u>). By remaining hands-off, it\u2019ll be easier to maintain your new savings habit.<\/p>\n

          \n
          \"Photo<\/figure>\n
          \n

          How this saver used a high-yield savings account to save $100,000:<\/strong><\/p>\n

          Leona Marlene, a 34-year-old content creator, has found that having a well-stocked emergency savings fund means freedom. She met her $100,000 savings goal \u2014 or about a year\u2019s salary \u2014 after five years of putting money aside in a high-yield savings account. Since it\u2019s been there, she hasn\u2019t touched it unless absolutely needed. Keeping the funds in an online bank, which doesn\u2019t have free access to ATMs, also helps her stay away from her savings. Automatically depositing the funds into her savings account helps make it a habit, too.<\/p>\n

          Marlene frames her budgeting and saving habits as a net positive in her life. \u201cBudgeting is cool. Budgeting is not a tool you use to deprive yourself. It\u2019s cool to know where your money is going,\u201d she says.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

          You can keep your savings in one lump sum in a savings account, but some banks today allow you to go one step further. You can split up your funds into savings buckets, meaning you can assign roles to your funds:<\/p>\n

          Savings buckets let you know where your savings are going by separating them according to your goals, such as an emergency fund, travel fund or house down payment. Not only does this allow you to avoid touching your emergency funds when withdrawing money for a vacation, it serves as a constant reminder of the reasons why you\u2019re saving in the first place.<\/p>\n

          \n
          \"Photo<\/figure>\n
          \n

          How this saver uses savings buckets:<\/strong><\/p>\n

          Molly Gilpin, a 30-year-old in Austin, Texas, finds saving money empowering. She began prioritizing saving money when she was 24 and now has about $20,000 saved. Opening an HYSA with an online bank allowed her to easily set aside savings and compartmentalize her savings into a travel fund, emergency savings and other buckets.\u00a0<\/p>\n

          \u201c(Buckets) makes it a little bit more exciting to see the money in there,\u201d Gilpin says.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

          The bottom line<\/h3>\n

          Saving money isn\u2019t always easy, but it\u2019s vital for your financial health. If you don\u2019t feel like you have enough room in your budget to save, consider cutting expenses where you can<\/u> by examining your subscriptions, setting spending limits and cutting down on unnecessary spending. Or, you can try selling unwanted possessions or even picking up a side hustle<\/u>. <\/p>\n

          \n
          \n

          Did you find this page helpful? <\/p>\n<\/p><\/div>\n

          Help us improve our content<\/p>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

          Key takeaways: Nearly a quarter of Americans don\u2019t have an emergency savings fund. If you\u2019re one of them, that puts you at risk of taking on significant debt. It can be challenging to start and maintain an emergency savings fund. Determining the minimum you need to save and starting with a savings sprint can help.<\/p>\n","protected":false},"author":2,"featured_media":2284,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-2283","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news"],"featured_image_urls":{"full":["http:\/\/ft365.org\/wp-content\/uploads\/2025\/08\/2283-1-in-4-americans-no-emergency-savings.jpg",1280,720,false],"thumbnail":["http:\/\/ft365.org\/wp-content\/uploads\/2025\/08\/2283-1-in-4-americans-no-emergency-savings-150x150.jpg",150,150,true],"medium":["http:\/\/ft365.org\/wp-content\/uploads\/2025\/08\/2283-1-in-4-americans-no-emergency-savings-300x169.jpg",300,169,true],"medium_large":["http:\/\/ft365.org\/wp-content\/uploads\/2025\/08\/2283-1-in-4-americans-no-emergency-savings-768x432.jpg",640,360,true],"large":["http:\/\/ft365.org\/wp-content\/uploads\/2025\/08\/2283-1-in-4-americans-no-emergency-savings-1024x576.jpg",640,360,true],"1536x1536":["http:\/\/ft365.org\/wp-content\/uploads\/2025\/08\/2283-1-in-4-americans-no-emergency-savings.jpg",1280,720,false],"2048x2048":["http:\/\/ft365.org\/wp-content\/uploads\/2025\/08\/2283-1-in-4-americans-no-emergency-savings.jpg",1280,720,false],"morenews-featured":["http:\/\/ft365.org\/wp-content\/uploads\/2025\/08\/2283-1-in-4-americans-no-emergency-savings-1024x576.jpg",1024,576,true],"morenews-large":["http:\/\/ft365.org\/wp-content\/uploads\/2025\/08\/2283-1-in-4-americans-no-emergency-savings-825x575.jpg",825,575,true],"morenews-medium":["http:\/\/ft365.org\/wp-content\/uploads\/2025\/08\/2283-1-in-4-americans-no-emergency-savings-590x410.jpg",590,410,true],"crawlomatic_preview_image":["http:\/\/ft365.org\/wp-content\/uploads\/2025\/08\/2283-1-in-4-americans-no-emergency-savings-260x146.jpg",260,146,true]},"author_info":{"display_name":"henry","author_link":"http:\/\/ft365.org\/index.php\/author\/henry\/"},"category_info":"Latest News<\/a>","tag_info":"Latest News","comment_count":"0","_links":{"self":[{"href":"http:\/\/ft365.org\/index.php\/wp-json\/wp\/v2\/posts\/2283","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/ft365.org\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/ft365.org\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/ft365.org\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/ft365.org\/index.php\/wp-json\/wp\/v2\/comments?post=2283"}],"version-history":[{"count":0,"href":"http:\/\/ft365.org\/index.php\/wp-json\/wp\/v2\/posts\/2283\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/ft365.org\/index.php\/wp-json\/wp\/v2\/media\/2284"}],"wp:attachment":[{"href":"http:\/\/ft365.org\/index.php\/wp-json\/wp\/v2\/media?parent=2283"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/ft365.org\/index.php\/wp-json\/wp\/v2\/categories?post=2283"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/ft365.org\/index.php\/wp-json\/wp\/v2\/tags?post=2283"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}