Having an emergency fund set aside for unexpected expenses has long been considered an essential financial goal, but many Americans are now saving less than before.
In fact, 1 in 3 Americans say they don’t have an emergency fund. And the median amount Americans say they have saved for emergencies is $500, according to a survey conducted by budgeting app Empower in June.
That’s $100 less than a median amount of $600 reported in the same survey conducted a year ago by Empower.
“The study suggests financial precarity at a time when household finances may be stretched due to rising prices and inflation,” Rebecca Rickert, head of communications at Empower, said in the study.
Higher earners are reporting smaller emergency savings balances as well. Full-time employees who contribute to their retirement through an account like a 401(k) and have at least $5,000 in their accounts report holding a median of $20,000 in emergency savings — $5,000 less than the median balance reported a year ago, according to a survey conducted by BlackRock published Monday.
