59 Percent of Americans Don’t Have Enough Savings for a $1,000 Emergency: Report

Organic produce for sale at a Ralph's Supermarket in Irvine, Calif., on Nov. 28, 2016. Robyn Beck/AFP via Getty Images

Most Americans cannot afford a $1,000 emergency expense, with inflation and high interest rates affecting their ability to save adequately, according to a recent survey by consumer services company Bankrate.

A full 59 percent of Americans aren’t in a position to use their savings “to pay for a major unexpected expense, such as $1,000 for an emergency room visit or car repair,” said a Jan. 23 report from the company.

This is up from 56 percent a year back.

“We are essentially a paycheck-to-paycheck nation,” said Mark Hamrick, senior economic analyst at Bankrate. “Fewer Americans have the equivalent of a financial safety net to cover inevitable unexpected expenses, despite low unemployment and steady growth.”

To help alleviate the financial crunch, President Donald Trump issued an executive order for delivering “emergency price relief” for families and tackling the cost of living crisis facing America on his first day in office. The 12-month inflation rate, which has remained below 3 percent since July, has risen for the past three months.

Bankrate said Americans have been struggling against a “number of economic headwinds” over the past several years, including a slowing job market and high inflation.

In the survey, 73 percent of respondents blamed inflation, high interest rates, or a change in income or employment status as reasons why they were saving less to meet unforeseen expenses. This is up from 68 percent last year.

According to data tracked by the U.S. Federal Reserve Bank of St. Louis, the average city price of a dozen Grade A large eggs has risen by more than 182 percent between January 2021 and December 2024. The price of ground beef per pound is up by 41 percent, fresh whole chicken by nearly 30 percent, whole fortified fresh milk per gallon by 18 percent, and white pan bread per pound by almost 24 percent.

A quarter of respondents said they would have to fund $1,000 in emergency expenses by financing it with a credit card and paying off the debt over time. This is up from 21 percent in 2024.

Hamrick said the increase in cost of living is “prompting more individuals and households to turn to credit cards when in a bind.”

“They are a terrific tool when used wisely and effectively. But with interest rates still high, we need to avoid a deepening debt burden which could make it more challenging to save.”

High Cost of Living

The Trump executive order blamed the prior administration’s vast government spending, overregulation, and “destructive” policies for pushing Americans into an inflation crisis.

“Hardworking families today are overwhelmed by the cost of fuel, food, housing, automobiles, medical care, utilities, and insurance,” said the order.

Trump directed the heads of all executives and agencies to look for ways to cut down housing costs and boost supply, eliminate practices that raise health care costs, eliminate any requirements that contribute to higher home appliance prices, and get rid of harmful climate policies that increase the costs of fuel and food.

The cost of living crisis among Americans developed while the savings rate has gone down. Since 2022, the personal saving rate of U.S. citizens has mostly remained below 5 percent. Prior to the pandemic, the rate largely was above the 5 percent level.

A recent survey from Marist Poll and Yahoo Finance showed that only one in 10 banked households were “completely satisfied” with their amount of savings.

The rising cost of living was cited as the biggest hurdle to saving more, with two in three households saying these expenses are “not very affordable or not affordable at all” in their area.

“Looking to 2025, banked households are cautiously optimistic about their savings. A plurality (44 percent) think they will be able to save more money, and 32 percent believe they will save about the same in the coming year. 24 percent think they will save less money,” said the survey.

“Six in ten banked households in America (60 percent) are more optimistic about their finances in the coming year with Donald Trump as President. There is cross-generational consensus on this question, with a majority in every generation saying they are more optimistic. Gen Z (70 percent) is the most optimistic.”