Building an emergency savings fund is a difficult task for Americans. Both the economy and the way we're psychologically wired may be to blame.

When faced with an unexpected $1,000 expense, more than one-third of Americans would borrow the money, according to a new Bankrate survey. That may include tapping their credit cards, seeking money from friends or family or taking out a personal loan.

Most would not turn to cash savings because they don’t have it, the personal finance website found.

Fewer than half of Americans, 44%, say they can afford to pay a $1,000 emergency expense from their savings, according to Bankrate’s survey of more than 1,000 respondents conducted in December.

That is up from 43% in 2023, yet level when compared to 2022.

“We’re just not wired to save,” said Brad Klontz, a certified financial planner and expert in financial psychology and behavioral finance. Our brains are instead programmed to focus on our immediate needs.

  • pinkdrunkenelephants@lemmy.cafeEnglish
    4·
    10 months ago

    My guy, you can’t just dismiss the stat because it’s so high. The fact that it’s so high shouldn’t trigger skepticism, it should trigger alarm.

    • bluGill@kbin.social
      1·
      10 months ago

      I’m not dismissing it. However I am dismissing the idea that this has anything to do with poverty. That later is what most people commenting seem to be assuming and that is not supported by the data we have.