OMAHA, Neb.–A new survey has found most Americans continue to have a “concerningly low amount of money in the bank.”
The survey of 1,500 Americans by Breeze, which describes itself as an insurtech, found 24% said they didn't have enough personal savings to cover an emergency $250 expense and 47% couldn't cover a $1,000 expense.
“If they suddenly stopped earning an income, nearly one-third of employed respondents could not cover expenses past the first four weeks using both their personal savings and debt,” Breeze said in its analysis of the findings.
According to the survey, the impacts of living paycheck-to-paycheck were far-reaching, with 61% saying they will reduce their holiday budget this year, while 53% would have already quit their current jobs to explore other career opportunities if they had the savings to do so.
According to Breeze, some of the highlights from the report include responses to this question: Do you have enough personal savings to cover an emergency $XXX expense? (i.e. without having to use a credit card, personal loan, other debt product, etc.)
For the amounts, Breeze said it started at $250 and ended at over $10,000.
- 24% couldn't cover a $250 expense (34% of women, 15% of men)
- 35% couldn't cover a $500 expense (46% of women, 25% of men)
- 47% couldn't cover a $1,000 expense (57% of women, 38% of men)
- 54% couldn't cover a $1,500 expense (63% of women, 45% of men)
- 58% couldn't cover a $2,000 expense (67% of women, 50% of men)
- 62% couldn't cover a $3,000 expense (70% of women, 55% of men)
- 67% couldn't cover a $5,000 expense (75% of women, 59% of men)
- 70% couldn't cover a $7,500 expense (78% of women, 63% of men)
- 73% couldn't cover a $10,000 expense (81% of women, 65% of men)
- 75% couldn't cover an expense over $10,000 (83% of women, 67% of men)
Can’t Make it For Long
All employed respondents (not just the ones living paycheck-to-paycheck), were asked the following question: In your best estimation, how many weeks could you cover all expenses (rent, internet, insurance, utilities, etc.) if you stopped earning an income for an unknown amount of time? (you could use personal savings, credit card debt, other debt, etc.)
According to Breeze, a plurality of employed consumers (29%) could only make it one to four weeks on personal savings and debt if they suddenly stopped earning an income. Another 16% would only last for five to eight weeks.
The full study can be found here.