How Much the Average Person has in Their Emergency Fund
The coronavirus came in and surprised everyone in 2020 and emphasizes the need for an emergency fund. With people getting laid off or reduced work hours, this really hurts people and can make matters worse than it already is.
As of March 20, nearly 3.3 million people have filed for unemployment which is more than the number who filed in the 2008 recession. With states requiring people to stay home and avoid contact with others, this really hurts people who work. In addition, many mom and pop shops, restaurants, bars, gyms, hair salons, and other nonessential services were closed.
Airlines are not immune to this virus as well. American Airlines cut 55,000 flights as of mid-March. Flights at Ted Stevens Anchorage Alaska are down 70% from a year ago.
Several airline flights have been canceled so airline passengers and crew work fewer hours.
The movie industry has delayed many new releases scheduled to come out this year to later this year or even next year.
When people work less hours, their income becomes almost nonexistent until there is a cure for the virus.
As for savings, these numbers have improved over the years but the amount saved is still very low.
Average Savings by Age
The typical American household has an average of $8.863 in savings at a bank or credit union according to a report from Bankrate.
American couples without kids who are 34 years and younger have about $4,727 in savings. Single adults without kids have an average of $2,729 in savings.
These numbers would not last long for any couple who has to pay their mortgage or rent as well as monthly utilities, food, and travel expenses.
Older people have a little more saved away. Those who are between the ages of 35 and 44 with children have saved an average of $10,399. Then those who are between the ages of 45 to 54 have saved an average of $15,589.
Then couples who are between the ages of 55 to 64 with children have saved the most with an average of $17,587.
Additional figures from CNBC details the following:
Age 34 and younger
· Singles with children: $1,350
· Singles with no children: $2,729
· Couples with children: $3,682
· Couples with no children: $4,727
Ages 35 to 44
· Singles with children: $2,422
· Singles with no children: $3,693
· Couples with children: $10,399
· Couples with no children: $5,306
Ages 45 to 54
· Singles with children: $4,163
· Singles with no children: $5,763
· Couples with children: $15,589
· Couples with no children: $11,483
Ages 55 to 64
· Singles with children: $6,911
· Singles with no children: $6,786
· Couples with children: $17,587
· Couples with no children: $15,722
Ages 65 to 74
· Singles with children: $6,652
· Singles with no children: $7,292
· Couples with children: $13,164
· Couples with no children: $15,297
Age 75 or older
· Singles with children: $6,909
· Singles with no children: $9,981
· Couples with children: $8,967
· Couples with no children: $16,025
Financial author and best-selling author David Bach said,
How to start an emergency fund
Start an emergency fund sooner rather than later.
If you have limited funds saved away, start saving as soon as you can.
Start off with as much as you can put away every month and then increase the amount.
If finding a part-time job, is required then do that.
Some other ideas may be to find a smaller place for housing. Find a more modest car to drive and hole on to the car for longer periods of time. Eating out also takes away from most budgets when it could be more affordable to eat at home.
As soon as you can, make it a goal to increase your savings for your emergency fund.
