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Emergency savings cushion low?

 

 

[Begin VIDEO with Bankrate.com anchor, Lucas Wysocki introducing video topic]

Do you have a sufficient emergency savings cushion? Bankrate.com recently polled Americans on their rainy day funds, and here to discuss the results is Greg McBride, senior financial analyst with Bankrate.com.

[Cut to a double screen of Lucas Wysocki and Greg McBride]

Lucas Wysocki: What percentage of Americans have adequate emergency savings and how many have nothing?

Greg McBride: Almost a quarter, 24% have an adequate emergency savings fund, almost enough to cover six months worth of expenses. But at the other end of the spectrum you have the other 24% that have nothing, at all. In between, about 44% of Americans have something, but they're not quite to that six-month expense threshold. And just to underscore the importance of emergency savings, there are over 6 million Americans that have currently been out of work for longer than 6 months.

Lucas Wysocki: How do these results compare to years past?

Greg McBride: Well, the results are consistent with what we've seen in years past. Right now, 46% of Americans have at least three months of expenses tucked away in a rainy day fund. And that's exactly what it was back in 2007 when we had last asked the question.

Lucas Wysocki: In terms of financial security, where do consumers stand?

Greg McBride: The Financial Security Index for June was down slightly from May, but Americans comfort level hit a new high…26% say they're more comfortable with the debt they have now, relative to 12 months ago; only 19% less comfortable. Debt is the one area of financial security where we're seeing Americans make some strides.

[Cut to a one shot on screen of Lucas Wysocki]

Lucas Wysocki: Very enlightening news, Greg…thank you for sharing the results. If you would like to read more on our monthly Financial Security Index and to view more of June's emergency savings findings…log onto Bankrate.com. I'm Lucas Wysocki.

[END VIDEO CLIP]

 

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