A Bankrate survey revealed that only 47% of Americans have enough funds to cover a $1,000 emergency expense, with 30% willing to use their savings, 17% relying on regular income, and 33% resorting to debt. Factors like inflation, changing income, and interest rate cuts impact savings, with 54% saving less due to rising prices.

In the event of a job loss, 68% of Americans worry about covering living expenses, with 43% very worried. Those who increased emergency savings in 2025 were more likely to report increased household earnings. Men, younger adults, higher earners, and those with higher education levels were more successful in building savings.

Experts recommend saving 3-6 months of expenses for emergencies. Starting with $500 in savings and automating deposits can help. Different accounts like online savings or money market accounts can safeguard savings. Maintaining a budget and increasing income through side hustles can aid in saving more.

A study suggests that 80% of people who used emergency savings in the past year spent it on essentials like unplanned expenses, monthly bills, or day-to-day needs. Millennials and Gen Xers were more likely to use savings for non-essentials. Prioritizing both emergency savings and paying down debt simultaneously can help secure financial stability.

With a 28% chance of a recession, building an emergency fund is crucial. Tips include saving 3-6 months’ worth of expenses, starting small with $500, and choosing the right account for savings. Consistency in saving, budgeting, and increasing income can help prepare for financial uncertainties.

Read more at Yahoo Finance: Bankrate’s 2026 Annual Emergency Savings Report