One in Three adult Americans has no emergency savings.
According to this April 2014 article fromhe
housing industry will likely be impacted by the results of a new survey from
NeighborWorks America, which
serve as a stark reminder of affordability challenges. The survey found that
almost 70 million working age Americans – about one-third – have no emergency
savings. This highlights a primary problem facing potential homebuyers, as one
in three homes are deemed unaffordable to the average buyer, and mortgage
originations are reportedly at a 14-year low.- Only 25 percent of American have enough saved to cover 30 days of living expenses.
- About one in five have enough savings to cover three months – about the average time of unemployment for many Americans – while 28 percent expect their emergency funds to cover a year.
- Approximately 29 percent of adult Americans have no emergency savings in place—whether to pay for the repair of a car that’s required to get to work, or fix a major household necessity such as a roof or furnace.
- Retirement and buying a home are the top savings goals at 28 percent and 13 percent, respectively.
- Just 5 percent of consumers say that they are currently saving to create a buffer in case of a financial emergency.
- 52 percent of people earning less
than $40,000 said that they had no reserve.
Thank you for reading,
Francis
