NEW YORK–More than half of all Americans do not have sufficient savings to cover a $500 or $1,000 unplanned expense, according to a new report.
The report, from Bankrate, found just 41% of adults said they had enough money in their savings account to cover a surprise expense of that size. Just more than 20% said they would put such an expense on a credit card, the report found, while another 20% said they would reduce their spending, while 11% said they would turn to friends and family for financial assistance.
As dire as those numbers are, Bankrate said they’re actually an improvement over one year earlier. In 2016 just 37% of Americans said they had enough stashed away to cover an expense of $500 or more.
The Bankrate research found Millennials were best prepared financially to handle a financial emergency, with 47% of those aged 18-29 saying they could cover such an unplanned expense. That’s up significantly from the from 33% in 2014 who said they had the funds.
Bankrate said it found almost half of the 1,003 adults surveyed reported they or a family member faced a major financial expenditure in the past year.