Few Consumers Saving for a Rainy Day
Piggy banks and money boxes are gaining popularity as people are starting to save their money at home. (Justin Sullivan/Getty Images) NEW YORKDespite many corporations announcing large profits since the recent recession, many consumers are still feeling the pinch.
A recent study found that only 24 percent of all Americans have six months worth of living expenses saved in the bank, and a similar percentage have no savings at all, according to a study by financial information website Bankrate.com.
With the U.S. unemployment rate hovering around 9.1 percent and hundreds of thousands of homes in foreclosure, the study paints an alarming picture of the financial state of the vast majority of Americans.
Across the country, more than 6 million people are out of work, and the latest survey underscores the issues they face. The majority of Americans still have much work to do in building an adequate emergency savings cushion, said Greg McBride, a financial analyst at Bankrate.com.
Those most likely to have an adequate savings cushion are individuals in their 50s and 60s and higher-income households. But even among these groups, at least half do not have six months' expenses in an emergency fund, he added.
A recent study found that only 24 percent of all Americans have six months worth of living expenses saved in the bank, and a similar percentage have no savings at all, according to a study by financial information website Bankrate.com.
With the U.S. unemployment rate hovering around 9.1 percent and hundreds of thousands of homes in foreclosure, the study paints an alarming picture of the financial state of the vast majority of Americans.
Across the country, more than 6 million people are out of work, and the latest survey underscores the issues they face. The majority of Americans still have much work to do in building an adequate emergency savings cushion, said Greg McBride, a financial analyst at Bankrate.com.
Those most likely to have an adequate savings cushion are individuals in their 50s and 60s and higher-income households. But even among these groups, at least half do not have six months' expenses in an emergency fund, he added.
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