How Much Savings Americans Need To Feel Financially Prepared

How much money would it take for you to feel financially prepared? New research reveals that the average American doesn’t feel prepared for the worst until they have $5,078 saved.

According to a survey of 2-thousand working Americans evenly divided by generation (500 each of Gen Z, millennials, Gen X and baby boomers), Gen Z needs less in the bank to feel secure, at least $4.286. Baby boomers would prefer to have nearly $65-hundred ($6,490), and Gen X would feel prepared with a bank account balance of closer to $5-thousand ($4,910).

The poll also finds:

  • Nearly two-thirds (63%) would be able to cover an unexpected $500 expense, but 30% confess that they couldn’t.
  • Another 17% admit they couldn’t afford that expense currently, but think they’d eventually be able to find a way to pay for it.
  • To cover the cost, 32% would dip into savings, 28% would ask a loved one for help and 26% would cover the unexpected expense by temporarily not paying other less important bills.
  • For 72% of respondents, most of their paycheck goes to paying bills, with 69% saying it’s the first thing they do when they get paid.
  • When they first get their paycheck, 29% feel “excitement,” but that’s quickly followed by stress (19%), feeling prepared (19%) and overwhelmed (19%).
  • Before payday, 39% say they’re less likely to attend social events so they have money for when they really need it.
  • That’s one way to avoid the feeling of “pay paralysis” - a “wave of anxiety or fear due to low funds between pay cycles,” which 59% of people experience.
  • Respondents start to feel stressed about their finances seven days after getting paid, on average.
  • The average American loses five nights a sleep a month from worrying about money.

Source: SWNS Digital

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