A new survey highlights how most Americans would be unable to use their savings in order to pay for an unexpected expense.
While the poll from Bankrate acknowledged the country’s falling inflation numbers and strong employment trends, it added that “many Americans still don’t have enough savings for a rainy day.”
The annual survey, which Bankrate has conducted for the past 13 years, notes that only 44 percent of Americans could pay for a $1,000 emergency through a savings fund they are currently maintaining. The remaining 56 percent of Americans would have to take other actions, with more than a third saying they would be forced to go deeper into debt.
Sixteen percent of Americans would reduce their spending habits elsewhere in order to cover the cost of an emergency, the survey found, while 35 percent would have to borrow money to pay for it, either through taking out a personal loan, paying through credit cards or asking family members or friends for aid. Five percent said they’d “do something else,” an answer which Bankrate didn’t delve into.
The survey also found that 57 percent of Americans are uncomfortable with the amount of savings they have for emergencies. Twenty-two percent of Americans have no emergency fund set up at all — the second lowest rate in Bankrate’s history of polling on the question.
The U.S. has been experiencing numerous positive economic indicators as of late, including low unemployment, a reduction in inflation and continued economic growth over the past year. On Thursday, the Commerce Department announced that the gross domestic product grew by 3.3 percent in the past year.
However, those economic gains aren’t being felt in households across the country, as inflation has raised the costs of goods to the point where most Americans say they are living paycheck-to-paycheck.
The issue is likely to play a major role in the 2024 presidential election. Typically, incumbent presidents are viewed as more vulnerable when the economy isn’t doing well. The fact that most Americans aren’t experiencing the effects of positive economic indicators firsthand could be problematic for President Joe Biden, who is seeking reelection in the fall.
Polling data on the question is indeed alarming for Biden. According to an Economist/YouGov poll published this week, 19 out of 20 registered voters (95 percent) view inflation and rising prices as an important issue. Those voters also gave Biden failing marks on the matter — just 37 percent of registered voters approve of Biden when it comes to inflation and prices, while 58 percent disapprove.
We’re not backing down in the face of Trump’s threats.
As Donald Trump is inaugurated a second time, independent media organizations are faced with urgent mandates: Tell the truth more loudly than ever before. Do that work even as our standard modes of distribution (such as social media platforms) are being manipulated and curtailed by forces of fascist repression and ruthless capitalism. Do that work even as journalism and journalists face targeted attacks, including from the government itself. And do that work in community, never forgetting that we’re not shouting into a faceless void – we’re reaching out to real people amid a life-threatening political climate.
Our task is formidable, and it requires us to ground ourselves in our principles, remind ourselves of our utility, dig in and commit.
As a dizzying number of corporate news organizations – either through need or greed – rush to implement new ways to further monetize their content, and others acquiesce to Trump’s wishes, now is a time for movement media-makers to double down on community-first models.
At Truthout, we are reaffirming our commitments on this front: We won’t run ads or have a paywall because we believe that everyone should have access to information, and that access should exist without barriers and free of distractions from craven corporate interests. We recognize the implications for democracy when information-seekers click a link only to find the article trapped behind a paywall or buried on a page with dozens of invasive ads. The laws of capitalism dictate an unending increase in monetization, and much of the media simply follows those laws. Truthout and many of our peers are dedicating ourselves to following other paths – a commitment which feels vital in a moment when corporations are evermore overtly embedded in government.
Over 80 percent of Truthout‘s funding comes from small individual donations from our community of readers, and the remaining 20 percent comes from a handful of social justice-oriented foundations. Over a third of our total budget is supported by recurring monthly donors, many of whom give because they want to help us keep Truthout barrier-free for everyone.
You can help by giving today. Whether you can make a small monthly donation or a larger gift, Truthout only works with your support.