Report: 43% of Consumers Are Saving for Emergencies

Nearly half of Americans (43 percent) say they are setting money aside for an emergency fund, according to the latest Ann Arbor-based Plinqit’s State of Savings Report.
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A report from Plinqit in Ann Arbor shows nearly half of Americans are setting money aside for an emergency fund. // Courtesy of Plinqit
A report from Plinqit in Ann Arbor shows nearly half of Americans are setting money aside for an emergency fund. // Courtesy of Plinqit

Nearly half of Americans (43 percent) say they are setting money aside for an emergency fund, according to the latest Ann Arbor-based Plinqit’s State of Savings Report.

The report from Plinqit, a savings platform that pays users for learning about personal finances, uncovers insights into the savings habits of consumers based on a recent Harris Poll survey of more than 2,000 U.S. adults.

Forty-three percent of respondents say they are actively contributing to their emergency funds, both for short-term and long-term expenses. Nearly one-third of Americans, 32 percent, are putting aside money for a long-term emergency fund and 28 percent are saving for a short-term emergency fund.

“It’s no secret that life is full of unexpected expenses that can devastate a family’s finances,” says Kathleen Craig, founder and CEO of Plinqit. “While the price increases for everyday necessities leave many U.S. households with financial stress, consumers remain focused on building up their emergency savings even in these trying times. Providing tools to help them be successful in their savings goal is critical for financial institutions.”

In addition to emergency savings, the report shows the vast majority of Americans (91 percent) are saving for something this year, for instance travel (43 percent) or to pay down or pay off debt (42 percent).

Three in 10 Americans (30 percent) are setting aside money to pay down or pay off credit card debt, 10 percent are putting money away to pay down/off student loans, and nearly one in five (18 percent) are saving to pay down/off other types of debt.

Some Americans cite life event categories as things they are saving for this year. More than one in three Americans (35 percent) are putting away money for retirement, 14 percent are saving to pay for college or other schooling, and 10 percent are saving for major life events such as a wedding or a baby on the way.

Large purchases are another common savings category, with nearly a third of Americans (31 percent) saving to purchase a vehicle this year, and almost 20 percent saving to purchase a home.

“Our State of Savings Report shows Americans are prioritizing contributions to both short-term and long-term emergency funds, which is proof that consumers understand the importance of making good financial decisions that boost their resilience in the face of economic downturns,” Craig says. “At Plinqit, we believe that establishing strong savings habits and making smart financial decisions are the first steps toward achieving sustained financial wellness.”

To access the full report, visit here.