Discovering YOU Magazine September 2025 Issue | Page 62

MIND YOUR BUSINESS

conditions, though Americans cite several common roadblocks to saving for a rainy day:

* 39% say inflation and rising prices are the top barrier

* 35% point to high monthly expenses

* 32% say their income is too low or irregular

* 22% prioritize paying off debt first

Close to half (46%) say their emergency savings account has less money compared to a year ago and more than 2 in 5 (42%) say their savings wouldn't help them if they lost their job today. Some 40% say they can count on their family to help if something goes wrong financially.

Where do Americans keep their safety nets?

Around 37% of Americans store their emergency saving fund in a regular savings account. A quarter use a checking account (23%). Nearly 1 in 5 keep emergency cash at home (19%) - a figure that rises to 27% among Gen Z.

Only 16% have set a specific goal of saving six months of expenses. But the lack of a precise number isn't stopping people from trying. In fact, 41% don't have a target at all - but they're putting away money as they go.

Generational check-in

* Car repairs (26%)

* Medical bills (24%)

* Home repairs (19%)

* Job loss or income reduction (14%)

* Pet emergency (11%)

Nearly two-thirds (64%) of Americans say emergency savings are a financial priority for them in 2025. Some 17% contribute to their fund monthly as part of their budget, and 31% say they've added to their savings in the past month.

Stress meets strategy

Most take a "better safe than sorry" approach to emergency savings and want to put away as much as possible (39%), with half (52%) wishing they had started saving sooner. Close to 1 in 5 are more modest, saving up "just enough to sleep at night" (17%), while 13% are opportunity cost conscious - they balance emergency savings with other investments.

But the study reveals awareness and momentum: Nearly half (48%) believe their emergency savings will grow over the next year:

* 20% add to their fund sporadically when they have extra money

* 12% have set up automatic monthly contributions

What gets in the way?

Nearly a quarter (23%) say they maintain the same emergency savings approach regardless of economic conditions, though Americans cite several common roadblocks to sa

" Close to half (46%) say their emergency savings account has less money compared to a year ago ...."