Survey: Half of Americans have insufficient emergency savings, quarter have none at all

(CBS News) About half of Americans are unprepared for a financial emergency - with savings tucked away to cover less than three months worth of expenses if income was lost - and a quarter of the country has no rainy day fund whatsoever, according to a survey for Bankrate.com.

"The majority of Americans still have much work to do in building an adequate emergency savings cushion," Greg McBride, Bankrate's senior financial analyst says of the results.

According to Bankrate, all Americans should strive to have enough money in savings to cover six months of lost wages. Only 24 percent of the nation meets that goal, the study shows.

As you might expect, those most likely to have sufficient savings were predominantly wealthier, older Americans. Among people aged 65 or older, 39 percent reported at least six months worth of savings - but 15 percent of this subgroup also said they had nothing saved at all.

For younger Americans, aged 18 to 29, the statistics were far more dire, with 35 percent reporting no savings at all, and a solid majority, 63 percent, saying they had enough to cover three months' worth of expenses, at best.

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Bankrate notes that the recession which began in 2008 has now left more Americans vulnerable to financial duress should the economy take another turn for the worst - or even dip into a dreaded "double dip" recession.

Essentially, with so many Americans losing stable income during the first recession, and so many emergency funds being depleted as a result, a greater number of people are now at risk of having to rely on credit if they again find their income reduced.

Bankrate.com is a commercial website which offers advice and services on financial planning. The survey was carried out for Bankrate by Princeton Survey Research Associates International, which spoke to 1,006 Americans in its research. The reported margin of error for the research was plus or minus 3.6 percentage points.

[foo8259]

Well duh, my electric bill alone went from $35 last month to $75 this month and I got charged a "peak usage surcharge" $5.95 to boot. It's HOT and I need to run the AC just to survive here in Texas. Also food costs, I eat mostly meat, eggs, fish nuts and liver have increased 35%! Property taxes have gone up too and vehicle inspections, required moto insurance and vehicle registrations also increased. You just cant get more wool from a skinny sheep people :(

[Digmen1]

Yes if you have outsourced many of your industries and borrow so much from China, then how can you have good jobs so that people can save.

The answer is to rebuild Amercian manufacturing, this would create more jobs and prosperity for all cities with extra taxes paid etc.

But of course its easier said than done.

May the west is on a permanent decline till the developing world catch up with and all wages are about the same.

But by then China will have all the top scientists and technology.

[hillzhavays]

So do you have any suggestions on how to make American manufacturing competitive in terms of labor cost? The unions will have something to say about that.

I hear lots of people saying we should "rebuild American" manufacturing but no real ideas that can be practically applied in the real world.

[elihu32]

You see, it works like this: The illustrious government we have had in place, especially since the beginning of the last century, wants these kind of results. That way, they finally and completely have their stable of serfs! It's working isn't it?

[ajk_cbsnews]

Corporations are people too, my friend! Let them eat cake!

[Jhihmoac]

Wowww! Ya think?

[AOCGUY]

While there are certainly people in this country that have no savings due to circumstances beyond their control, I suspect the majority are in this position because they spend frivolously. I am 60 years old and until recently never made a lot of money (actually I really don't make a lot now although its more than most). What I have done is live within my means and always put something aside. Now I will also admit that I have been lucky in that I have been "unemployed" maybe 5 days in the last 42 years. And now at the young age of 60 I own my home outright, have no bills beyond the normal periodic bills such as food, utilities, taxes (those nasty little things), etc. And no I didn't live like a monk. I have owned houses, boats, put myself and my kids through college, etc. BUt if I couldn't afford something, I waited until I could

[dlnewco50]

I am with you there. At 62 I plan to retire but I think that I prepped for that by not running with the lemmings, a decision I made about 25 years ago. I keep modest cars a long time, lunch is a brown bag, I eat out rarely (but go high end when I do,)and avoid hype and fads. No mortgage, just monthly bills. We do take a cool vacation yearly.
There is a lot of advertising push to have("you deserve") the latest and greatest -- stuff. Certainly there are those that are suffering bonafide, unfortunate circumstances, but I would argue that often people make their own circumstances. Time to go. Oh look, there goes a $2,000 car playing its $3,000 sound system...

[fiddlestickawshucks]

NO S**T SHERLOCK.!!

I can't imagine why.!

It couldn't possibly because we have a bunch of "leaders" who are selling us further down the river every day.

We can't pay our own bills much less those of other countries, but that doesn't stop Obama and Congress.

Almost every day there is someone on TV telling us that; in order to meet our debts; one of the first things we should do is pay off our credit cards because of the interest rates.

ENTER the government of the United States.

"We the Government" have spent the United States into so much debt; our grandchildren and maybe our great-grandchildren will still be paying the bills.

NO WORRIES though.

"We the Government" will just continue to spend money like the people of the United States still have it.

Then; Government got the bright idea to "BORROW" the money from other countries and take as much as they thought they could get away with from the people of the United States.

"We the Government" couldn't care less about the American people of the United States.

As long as they can continue to divide Americans; one against the other and baffle them with BS; they can do it.

Who cares if Americans can't find jobs.?

Who cares if many Americans are losing the very roofs over their heads, because the government is broken and corrupt.?

Who cares if we cannot afford to feed our children.?

Who cares if the net worth of Americans has dropped 40%.?

It sure as hell isn't "We the Government".!!!

Because "We the Government" mismanaged the taxpayers money and made promises to other countries we cannot afford to keep; more American lives are in danger, because we have been forced to cut the number of firefighters and policeman everywhere.

"We the Government" are also responsible for our children not getting the education they deserve, because the local governments can't afford to pay them.

We have a President, who to date, has refused to admit to one mistake much less the plethora of lies he told when he was campaigning.

To make our lives more interesting; he has just added more than 1 MILLION+ people to compete for jobs,housing, medical care and education.

Just in case the public reaction is negative though; he has decided to claim it was all Janet Napolitano's idea, and he just backed her up.

Whenever something comes up (like the interest rate on student loans; the first words out of the mouths of Congress are "How are we going to pay for it".?

In his next campaign speech; I want Obama to tell me how we are going to pay for this latest ploy to win Latino votes; and exactly what else it is going to cost me.?

We have already suffered the loss of quality education.

I am less safe in my home or on the street because there are fewer people to provide these services to protect me.

Our infrastructure is; and has been; crumbling for years while "We the Government" continues to send BILLIONS of dollars to countries who are our enemies every month either in the form of "foreign aid" or to help them rebuild their nations.

WHAT"S WRONG WITH THIS PICTURE.??!!!

Greed, corruption, lies, back-door deals, financial institutions knowingly almost causing our entire economy to collapse and not only getting away with it; but being rewarded with bailouts (with what money they didn't manage to stealfrom us the first go-round)
and legislators who belong to big business, pharmaceutical companies, unions etc. are what's wrong with this picture.

To make matters worse; this is only a partial list of the traitorous acts perpetrated upon Americans.

I also want Obama; in his next campaign speech; to tell me; specifically where I am going to find the money to start a "savings" account.

Maybe then we wont't have to move to a foreign country to survive.

[Jaylah54100]

Are you going to ask those questions of Romney as well? Because he sure seems to be good at giving "feel-good" vague answers, but doesn't do well at all with specifics.

[Jaylah54100]

by reality_bites1 June 25, 2012 12:46 PM EDT
My parents came to the US with little more than the clothes on their backs, but they scrimped and saved (no dinners out, second hand clothes, no vacations) enough to eventually buy a house (paid off the mortgage) and help put my brother and I through college. They're still very thrifty, even though they have enough saved up to enjoy life a little more now. People need to stop waiting for others to solve their problems and do something about it themselves, whether it's getting the training to take a new job or cutting back on things that aren't absolute necessities.

__________________________

I very much agree, Reality.

While my parents were born in this country, they were both children in the Great Depression. They heard from their parents what it was like to lose everything and they learned early and fast how to differentiate a "need" from a "want."

And, fortunately, they taught me that difference, too. When you consider buying something, you basically think to yourself, "Will I, or someone I love, be harmed if I don't buy this?" If the answer is no, it's a want, not a need.

I know so many people that don't even have enough saved for two months without an income, yet they drive two new cars (at least one a gas-guzzling SUV); have several big-screen televisions in their home; their kids have $500 game-toys (plural); $100 sneakers; everybody in the family has a "smart phone" with unlimited text-and-data plans; and they make a family outing to the mall every Saturday, coming home with the SUV loaded down with shopping bags.

I guess the good news in all of that is that it makes shopping second-hand stores a lot nicer for the rest of us.

[you_MAY_be_right]

I have no savings. I always just figured that when times get tough I will just take what I need. If you law-abiders don't like it you can put me in prison.

Either way, you pay.

Give me what I need or three hot and a cot.

(Yes I am being facetious)

[rightofwrong]

I love polls! 1006 people gave their opinion. This always portrays what the 350 million plus Americans are thinking.

[AOCGUY]

I find it interesting that when one disagrees with the outcome of a poll that they usually cite how unlikely a small sample can predict a general belief but when the poll results supports ones belief then the sampling is perfectly satisfactory.

[AOCGUY]

Actually George you are incorrect with regards to statistical sampling. If you check the process that all polls use (including the ones you agree with) you will find that they all use similar size samples to predict the outcome of the population targeted and most if not all have very small percentages of error.