Just three years after the official end of the recession and already Americans are feeling a little too comfortable. According to a new survey, less than a third have no money saved for emergencies.
The Bankrate Financial Security Index found that 28% of Americans have no emergency funds, up from 24% just a year ago. After the recession, financial advisors were suggesting that people have an emergency fund to cover a year or more. Less than half (42%) have three months’ worth saved, while one-fifth have enough to cover less than three months of expenses.
Unsurprisingly, those with higher incomes are more likely to have a sufficient emergency fund, or at least any fund at all. Only 9% of those earning more than $75,000 a year said they have no rainy-day fund. Meanwhile, 52% of those making less than $30,000 have no emergency funds.
Education also plays a factor as 41% of college graduates compared to only 14% of those with a high school education reported having enough savings to cover expenses for half a year.
One reason why more Americans are reporting that they don’t have savings is that they’re working on paying off debt. According to Bankrate, the collective debt load is smaller now than a few years ago because people are paying down credit accounts.