Many Americans Ill-Prepared for Financial Emergencies
(NEW YORK) -- Saving money for a rainy day is an adage that's been around as long as there have been rainy days.
However, the Great Recession of 2007-2009 dried up a lot of saving accounts and as a result, many Americans have been unable to put away any emergency funds in the event of job loss or other financial catastrophes.
Bankrate.com says that one in four respondents in its annual survey admit they haven't put away a single dime towards an emergency savings account.
Almost as disconcerting is that two-thirds of Americans who have socked some money away for a rainy day don't have enough to cover six months of expenses while those who can get by for at least three months fell from 45 percent last year to 40 percent now.
The age group least likely away to sock away money are those 30-39 while more than a third of people with only a high school diploma say they haven't being able to save, compared to one in ten of Americans with college degrees.
Bankrate chief financial analyst Greg McBride says the problems people have with saving up for emergencies has been going on for several years, which he blames on stagnate wages, high household expenses and crushing student loan debts.
McBride also says Americans' love for buying stuff they can't afford is also hindering their ability to save.
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