Study: Few Have Rainy Day Savings
Considering the fact that financial issues are a significant cause of stress on the family, I thought the following article, recently published at msnbc.com provided some very useful information. It is republished below:
Most Americans have no emergency savings, a new survey shows. The findings are consistent with a host of other surveys and government data that chronicle Americans' abysmal savings rate and, more important, our lack of preparedness for life's unexpected events.
Released Monday at a press conference designed to call attention to "America Saves Week," the survey by the Consumer Federation of America and other consumer agencies indicates that only 40 percent of adult Americans maintain separate emergency savings accounts. And about one-third of those savers have set aside less than $2,000 for that inevitable rainy day.
Even $2,000 is considerably less than the 3- to 6-months of living expenses that most personal finance advocates recommend as an emergency kitty. Coincidentally, it is exactly the amount Hurricane Katrina victims received in "expedited assistance" aid from the federal government in the days after the storm. Thousands of victims didn't get the benefits because of computer glitches and other technicalities, and many of them were left with nearly no means of support after their homes and jobs were washed out by the storm. The Katrina aftermath shined a harsh light on the financial preparedness of many American consumers.
Continue Reading...