At a time of sticky inflation and a softening job market, extra money in the bank can serve as a lifeline for many consumers. Yet 8 in 10 Americans did not increase their emergency savings this year, a new Bankrate survey found, leaving them in no better financial position to deal with potential job losses, medical issues or other problems that could exhaust one’s cash reserves.
The national opinion survey also found that those who failed to increase their emergency savings since the beginning of the year were more likely than others to report a decline in household earnings since the start of 2025.
This data comes from Bankrate’s yearly Emergency Savings Report, an exclusive survey-based report conducted by Bankrate and polling partners SSRS and YouGov Plc. Since 2011, the survey has annually polled U.S. adults about their levels of debt and emergency savings. The most recent data, polled in October, examines how much emergency savings Americans have and why those savings levels have changed.
In the last several years, Americans have reckoned with a number of economic headwinds, from high inflation to a slowing job market, making it harder for them to save. Many are still determined to save money, but given the high percentage of people without emergency savings, they may be struggling to do so in today’s turbulent economy.
Rising income is the most important factor for being able to maintain and boost emergency savings over time.
— Stephen Kates, CFP®, Bankrate Financial Analyst
Bankrate’s insights on emergency funds and personal savings
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According to the survey, 32% of U.S. adults have less emergency savings now, while 31% have the same amount now and 19% reported increasing their emergency savings this year. The remaining 18% had no savings at the start of the year and still don’t have any now.
Notably, the survey did show that some were more successful than others at building their savings. This includes men, younger adults, those with higher levels of education, those who don’t have kids and higher wage earners.
When asked about changes to their emergency savings this year, 21% of men and 16% of women said it increased. Similarly, 28% of Gen-Z adults said it increased, compared with 19% of Millennials, 14% of GenXers and 15% for baby boomers.
Those with at least a four-year college degree were twice as likely as people who never went to college to grow their emergency savings (26% vs. 13%). Meanwhile, 21% of non-parents were able to increase their savings compared with 16% of parents.
Among those who earn at least $100,000 per year, 27% were able to grow their emergency savings this year, compared with 11% of those who earned less than $50,000. Lower wage earners, in fact, were most likely to be living with no emergency savings at all.
Increased earnings — not lower spending — is main driver for boosting emergency funds
When comparing people who had increased their emergency savings with those who experienced a decrease, those who reported an increase were nearly four times more likely to also report increased household earnings over the past year (47% vs. 13%). Conversely, those who had reported a decrease were four times more likely to also report a reduction in earnings (44% vs. 11%).
However, the survey did not show a clearcut relationship between one’s spending habits and ability to save. Those with decreased emergency savings (69%) were more likely to have spent more on basic necessities than those with increased savings (59%). Yet those with increased savings (25%) were more likely to have increased their spending on big-ticket items like a car or a house than those with decreased savings (14%).
“Rising income is the most important factor for being able to maintain and boost emergency savings over time,” Bankrate financial analyst Stephen Kates, CFP® says. “While controlling spending is important, nothing compares to simply having more money to contribute to the cause.”
Nearly a quarter of Americans have no emergency savings
While experts typically recommend keeping three to six months of expenses saved for emergencies, in reality, many people don’t have nearly that much saved. Only 46 percent of Americans have enough emergency savings to cover three months of expenses.
Otherwise, 30 percent of Americans have some emergency savings, but not enough to cover three months’ expenses. Another 19 percent could cover three to five months of expenses from their emergency savings, and 27 percent have enough to cover six months of expenses. Nearly 1 in 4 (24 percent) of Americans have no emergency savings at all.
Source: Bankrate Emergency Savings Surveys
Generation-wise, Gen Zers (ages 18-28) are likelier than older Americans to not have savings, or to have very little savings.
Emergency savings levels, by generation
| Gen Zers (ages 18-28) | Millennials (ages 29-44) | Gen Xers (ages 45-60) | Baby boomers (ages 61-79) | |
|---|---|---|---|---|
| No emergency savings | 34% | 28% | 24% | 16% |
| Some, but less than would cover three months’ expenses | 37% | 31% | 34% | 20% |
| Three to five months’ expenses | 18% | 16% | 22% | 22% |
| Enough to cover six months’ expenses or more | 10% | 25% | 20% | 41% |
Source: Bankrate Emergency Savings Survey, May 16-19, 2025
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More than 1 in 4 (27 percent) of both Southerners and Midwesterners don’t have any emergency savings, compared to 22 percent in the Northeast and 18 percent in the West.
Also, around half of Northeasterners (54 percent) and Westerners (49 percent) have enough saved to cover three months of expenses, compared to 44 percent of Midwesterners and 42 percent of Southerners.
The majority of people are uncomfortable with their level of savings
Sixty percent of Americans are uncomfortable with their level of emergency savings — 31 percent are very uncomfortable, and 29 percent are somewhat uncomfortable.
Only 40 percent of people are comfortable with their level of emergency savings, including 27 percent who are somewhat comfortable and 13 percent who are very comfortable.
Source: Bankrate Emergency Savings Survey, May 16-19, 2025
A majority (80 percent) of people who are comfortable with their emergency savings could cover at least three months of expenses, including 51 percent who could cover at least six months of expenses. Among those uncomfortable with their emergency savings, 76 percent would be unable to cover three months of expenses, including 36 percent who have no emergency savings at all.
Gen Zers and Gen Xers (ages 45-60) are the least likely to feel comfortable with their emergency savings — 29 percent and 31 percent, respectively — compared to 40 percent of millennials (ages 29-44) and 52 percent of baby boomers (ages 61-79).
There’s a wide gap between how much savings people would need to feel comfortable and how much they have
A majority (85 percent) of Americans say they would need at least three months of expenses in emergency savings to feel comfortable, but only 46 percent of people have that much. Similarly, 63 percent of people say they would need to have at least six months of expenses in emergency savings to feel comfortable, but only 27 percent of people have that much.
Source: Bankrate Emergency Savings Survey, May 16-19, 2025
Notably, nearly 1 in 3 (31 percent) of Gen Zers say they would need enough emergency savings to cover three to five months of expenses to feel comfortable, and 50 percent say they would need enough to cover six months of expenses.
Meanwhile, 61 percent of millennials, 66 percent of Gen Xers and 70 percent of baby boomers feel they would need at least six months of expenses saved to feel comfortable.
Millennials, parents are most likely to have tapped their emergency savings in the past year
More than 1 in 3 U.S. adults (37 percent) used their emergency savings in the past 12 months; another 39% didn’t, as of February 2025.
Source: Bankrate Emergency Savings Survey, Feb. 11-14, 2025; Note: Data for the response of “Not applicable – Don’t have any emergency savings” was removed from this chart, upon the polling of more recent data for this response in May 2025.
Generation-wise, millennials are the likeliest generation to say they tapped their emergency savings in the last 12 months, followed by Gen Xers:
- Gen Zers: 34 percent
- Millennials: 42 percent
- Gen Xers: 38 percent
- Baby boomers: 33 percent
Many Americans who dipped into their emergency savings in the past year pulled $1,000-$2,499
More than 1 in 4 people (26 percent) who pulled from their emergency savings in the past 12 months (as of February 2025) pulled between $1,000 and $2,499, a higher percentage than any other amount suggested by Bankrate. People also commonly pulled between $500 and $999 (22 percent) or less than $500 (18 percent).
Source: Bankrate Emergency Savings Survey, Feb. 11-14, 2025
Note: Percentages are of U.S. adults who’ve needed to use their emergency savings in the past 12 months.
People tend to use their emergency savings for essentials
The majority (80 percent) of people who used their emergency savings in the past year (as of February 2024) used the money for essentials. Specifically, about half (51 percent) of people who used their emergency savings in the past year did so for an unplanned emergency expense, such as a medical bill or car repair; monthly bills, such as rent and utilities (38 percent); and/or day-to-day expenses, such as food or supplies (32 percent).
Many people who withdrew from their emergency savings in the past year also did so in order to help a family member or friend (22 percent) or to pay down debt (21 percent).
Only a small percentage (19 percent) of people who withdrew from their emergency savings in the past year did so for non-essential reasons:
- 9 percent used the funds for a vacation.
- 10 percent used them for discretionary shopping (such as clothes or electronics).
- 7 percent used them for a discretionary experience (such as concerts, sports tickets or throwing a party).
Source: Bankrate Emergency Savings Survey, Feb. 11-14, 2025
Note: Percentages are of U.S. adults who’ve needed to use their emergency savings in the past 12 months; Respondents could select more than one option.
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Gen Zers and millennials who withdrew money from their emergency savings in the past 12 months were at least twice as likely as older generations to use their savings for non-essentials, such as vacations or discretionary shopping/experiences. Twenty-seven percent of Gen Zers and 27 percent of millennials who pulled money from their emergency savings in the past year used the funds for vacations or discretionary shopping/experiences, compared to 13 percent of Gen Xers and 9 percent of baby boomers.
Parents or guardians of children under the age of 18 were more likely than others to tap into their emergency funds for non-essential items. Among those who made a withdrawal in the past 12 months, nearly 1 in 3 (30 percent) did so for non-essentials. In comparison, just 17 percent of non-parents/guardians who withdrew money from their emergency funds did so for non-essentials.
Also, among people who withdrew money from their emergency savings in the past 12 months, both homeowners and renters were equally likely to have withdrawn funds for unplanned emergency expenses (52 percent each). But renters were more likely to withdraw money for monthly bills (43 percent) and day-to-day expenses (37 percent), compared to homeowners (34 percent and 26 percent, respectively).
1 in 3 Americans have more credit card debt than emergency savings
Bankrate has polled Americans on their emergency savings and credit card debt since 2011. Between 2011 and 2022, less than 30 percent of Americans had more credit card debt than emergency savings. But in 2023, amid a period of high inflation, that percentage soared to 36 percent, where it stayed for two years.
Now, in 2025, the percentage of people with more credit card debt than emergency savings has fallen to 33 percent, but it’s still much higher than it was before 2023.
On the contrary, more Americans (53 percent) have more emergency savings than credit card debt. Those percentages have hovered between 51 percent and 55 percent since 2021. Another 13 percent of Americans say they have no credit card debt or emergency savings.
Source: Bankrate Emergency Savings Surveys
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Generation-wise, millennials in 2025 are most likely to have more credit card debt than emergency savings, followed by Gen Xers:
- Gen Zers: 27 percent
- Millennials: 42 percent
- Gen Xers: 39 percent
- Baby boomers: 24 percent
Gen Zers, on the other hand, are the generation most likely to have no emergency savings or credit card debt:
- Gen Zers: 24 percent
- Millennials: 11 percent
- Gen Xers: 14 percent
- Baby boomers: 10 percent
More Americans prioritize both paying down debt and increasing emergency savings, instead of focusing on one
Paying down credit card debt and increasing emergency savings are both important financial goals, but the majority of people aren’t doing both at the same time. Just above one-quarter (28 percent) of people are focusing only on building emergency savings, and 24 percent are only focusing on paying down credit card debt. More than one-third (35 percent) of U.S. adults are prioritizing both increasing emergency savings and paying down credit card debt at the same time.
Source: Bankrate Emergency Savings Survey, January 3-5, 2025
Only around 2 in 5 Americans would pay for an emergency from their savings
Forty-one percent of people would pay a major unexpected expense (such as $1,000 for an emergency room visit or car repair). This is down from 44 percent a year prior, and after three years of progress, this is the lowest the percentage has been since 2021, when it was 39 percent.
Source: Bankrate Emergency Savings Surveys
Another 25 percent of people would use a credit card to pay for an unexpected $1,000 emergency expense and pay it off over time, up from 21 percent a year ago, and the same percentage seen in 2023.
“The cost of living continues to rise, prompting more individuals and households to turn to credit cards when in a bind,” Bankrate Senior Economic Analyst Mark Hamrick says. “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.”
Additionally, 13 percent of people would reduce their spending on other things to afford an unexpected $1,000 emergency expense, 13 percent would borrow from family or friends, 5 percent would take out a personal loan and 4 percent would do something else.
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Generally, the older someone is, the more likely they are to use their savings, not credit, in case of an emergency. Baby boomers are the likeliest generation (59 percent) to pay for an unexpected $1,000 emergency expense from their savings, followed by Gen Xers:
- Baby boomers: 59 percent
- Gen Xers: 42 percent
- Millennials: 32 percent
- Gen Zers: 28 percent
The economy is hurting Americans’ savings
Though inflation is no longer rising as quickly as it did in recent years, more people this year feel the economy has affected their savings. Nearly 3 in 4 Americans (73 percent) are saving less for emergency expenses due to inflation/rising prices, elevated interest rates or a change in income or employment. This percentage is up from 68 percent in 2024.
Source: Bankrate Emergency Savings Surveys
3 tips on building your emergency fund amid a turbulent economy
The U.S. has a 39% chance of a recession in the next year, according to Bankrate’s Economic Indicator Survey. While you can’t completely recession-proof your finances, building an emergency fund can be a much-needed lifeline if your income decreases or you lose your job. Here are three tips on how to start and maintain an emergency fund to prepare for uncertainty.
1. Figure out how much you need in emergency savings
Experts commonly recommend saving three to six months of expenses in case of emergencies. For example, if your monthly bills total $2,000 a month, saving $6,000 will allow you to pay your bills for a short time if you lose your main source of income. This is not a concrete rule; you may need to save more if you are self-employed and anticipate a lean month, or if you are preparing for a major lifestyle change, like an upcoming move or a new baby.
2. Open a savings account just for emergencies
Different emergency funds allow you to protect your savings and allow you quick access when you need the money. An online savings account, money market account, money market mutual fund or a separate savings account with your existing bank or credit union can allow you to save emergency funds for the future.
3. Make a budget around savings
You may already have a budget in place to make room for saving more, but make sure you stick to your good habits. Rebuilding your savings, or starting to save for the first time, can be easier by automatically transferring money to your savings each month or taking on side hustles for more income.
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The study (that was conducted October 2025) was conducted by YouGov Plc. All figures, unless otherwise stated, are from YouGov Plc. The total sample size was 2,481 U.S. adults. Fieldwork was undertaken between October 14-16, 2025. The survey was carried out online and meets rigorous quality standards. It gathered a non-probability-based sample and employed demographic quotas and weights to better align the survey sample with the broader U.S. population.
The study (that was conducted May 2025) was conducted by SSRS on its Opinion Panel Omnibus platform. The SSRS Opinion Panel Omnibus is a national, twice-per-month, probability-based survey. Data collection was conducted from May 16 – May 19, 2025 among a sample of 1,030 respondents. The survey was conducted via web (n=1,000) and telephone (n=30) and administered in English (n=1,004) and Spanish (n=26). The margin of error for total respondents is +/-3.9 percentage points at the 95% confidence level. All SSRS Opinion Panel Omnibus data are weighted to represent the target population of U.S. adults ages 18 or older.
The study (that was conducted February 2025) was conducted by YouGov Plc. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 3,480 adults, of whom 1,302 have withdrawn emergency savings in the past year. Fieldwork was undertaken between 11th – 14th February 2025. The survey was carried out online and meets rigorous quality standards. It gathered a non-probability-based sample and employed demographic quotas and weights to better align the survey sample with the broader U.S. population.
The study (that was conducted January 2025) was conducted by SSRS on its Opinion Panel Omnibus platform. The SSRS Opinion Panel Omnibus is a national, twice-per-month, probability-based survey. Data collection was conducted from January 3 – January 5, 2025 among a sample of 1,077 respondents. The survey was conducted via web (n=1,047) and telephone (n=30) and administered in English (n=1,048) and Spanish (n=29). The margin of error for total respondents is +/-3.8 percentage points at the 95% confidence level. All SSRS Opinion Panel Omnibus data are weighted to represent the target population of U.S. adults ages 18 or older.
The study (that was conducted December 2024) was conducted by SSRS on its Opinion Panel Omnibus platform. The SSRS Opinion Panel Omnibus is a national, twice-per-month, probability-based survey. Data collection was conducted from December 6 – December 9, 2024, among a sample of 1,039 respondents. The survey was conducted via web (n=1,009) and telephone (n=30) and administered in English (n=1,013) and Spanish (n=26). The margin of error for total respondents is +/-3.9 percentage points at the 95% confidence level. All SSRS Opinion Panel Omnibus data are weighted to represent the target population of U.S. adults ages 18 or older.
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