When faced with an unexpected $1,000 expense, more than one-third of Americans would borrow the money, according to a new Bankrate survey. That may include tapping their credit cards, seeking money from friends or family or taking out a personal loan.

Most would not turn to cash savings because they don’t have it, the personal finance website found.

Fewer than half of Americans, 44%, say they can afford to pay a $1,000 emergency expense from their savings, according to Bankrate’s survey of more than 1,000 respondents conducted in December.

That is up from 43% in 2023, yet level when compared to 2022.

“We’re just not wired to save,” said Brad Klontz, a certified financial planner and expert in financial psychology and behavioral finance. Our brains are instead programmed to focus on our immediate needs.

    • BakerBagel@midwest.social
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      10 months ago

      The factory i work at has had three 45¢ raises since 2008. Sure the $20/hour was great during the recession, but it’s hardly enough to live on today, and that’s over double my state’s minimum wage.

      • FartsWithAnAccent@lemmy.world
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        10 months ago

        I remember reading a study from about 10-20 years ago that found the average income for Americans to actually get by with enough to make it to retirement and have adequate healthcare was $75,000 a year. It’s probably much higher now too: The increasing levels of disparity are just fucking disgusting.