Survey: Consumers’ Savings Levels Improve
6/23/2017 11:00 AM
Bankrate reports that consumers are building adequate savings cushions at higher rates today than in the past.
Today’s consumers have more savings available for emergencies than they did in the past, according to Bankrate’s June Financial Security Index survey, which found that 31 percent of respondents had enough savings to cover expenses for at least six months. Bankrate considers six months’ worth of savings an adequate cushion.
The result marks the highest level of survey respondents in seven years who reported this amount of savings.
“But, looking at the flip side, the findings mean about a quarter of Americans still don’t have any emergency fund. And more than two-thirds are short on savings,” Bankrate reports.
Indeed, 24 percent of respondents reported that they do not have enough savings to offset a financial setback, which is the lowest reading for that measure since Bankrate started the survey in 2011.
Twenty percent of respondents said they have savings to cover three months or less of their expenses; and 17 percent said they have savings to cover expenses for three to five months. Consumers ages 18 to 26 are most likely to fall into that group, according to Bankrate.
“A lot of them (Millennials) have seen their parents suffer financially through the recession, and so they are trying to be savvier with their money,” consumer savings expert Andrea Woroch told Bankrate.
Overall, Bankrate’s Financial Security Index tracks consumers’ job security, net worth, comfort levels with savings and debt and their overall financial situation. These five components all improved from June 2016 and May this year, according to Bankrate.
“The net worth reading is the strongest ever, with Americans who say their net worth is higher than a year ago outnumbering those who say it’s lower by a ratio of 3 to 1,” it reports.
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