At a time of sticky inflation and a softening job market, extra money in the bank can serve as a lifeline for many consumers. Yet just 47% of Americans indicate they have sufficient liquidity or access to funds to cover a $1,000 emergency expense, a Bankrate survey found. This can present challenges when dealing with job losses, medical issues or other problems that could exhaust one’s cash reserves.
The national opinion survey found that 29% of Americans have more credit card debt than emergency savings, compared with 44% who have more savings than credit card debt. Meanwhile, 31% feel building emergency savings and lowering their credit card debt are equally important priorities, while 29% said they prioritize increasing their emergency savings and 21% are focused on paying down debt.
This data comes from Bankrate’s Emergency Savings Report, an exclusive survey-based report conducted by Bankrate and polling partners SSRS and YouGov Plc. Since 2011, the survey has polled U.S. adults annually about their levels of debt and emergency savings. The most recent data, polled in December 2025, compares Americans’ emergency savings and credit card debt amounts — and how they prioritize handling the two — as well as how people’s emergency savings amounts have changed compared to a year ago.
Most American households want to grow their savings, but few are making meaningful progress right now. Rather than trying to tackle everything at once, I recommend focusing on the single most important
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7% used them for a discretionary experience (such as concerts, sports tickets or throwing a party).
Note:Percentages are of U.S. adults who’ve needed to use their emergency savings in the past 12 months; Respondents could select more than one option.
Gen Zers and millennials who withdrew money from their emergency savings in the past 12 months were at least twice as likely as older generations to use their savings for non-essentials, such as vacations or discretionary shopping/experiences. Twenty-seven percent of Gen Zers and 27% of millennials who pulled money from their emergency savings in the past year used the funds for vacations or discretionary shopping/experiences, compared to 13% of Gen Xers and 9% of baby boomers.
Parents or guardians of children under the age of 18 were more likely than others to tap into their emergency funds for non-essential items. Among those who made a withdrawal in the past 12 months, nearly 1 in 3 (30%) did so for non-essentials. In comparison, just 17% of non-parents/guardians who withdrew money from their emergency funds did so for non-essentials.
Also, among people who withdrew money from their emergency savings in the past 12 months, both homeowners and renters were equally likely to have withdrawn funds for unplanned emergency expenses (52% each). But renters were more likely to withdraw money for monthly bills (43%) and day-to-day expenses (37%), compared to homeowners (34% and 26%, respectively).
3 tips on building your emergency fund amid a turbulent economy
The U.S. has a 28% chance of a recession in the next year, according to Bankrate’s Economic Indicator Survey. While you can’t completely recession-proof your finances, building an emergency fund can be a much-needed lifeline if your income decreases or you lose your job. Here are three tips on how to start and maintain an emergency fund to prepare for uncertainty.
1. Figure out how much you need in emergency savings
Experts commonly recommend saving three to six months of expenses in case of emergencies. For example, if your monthly bills total $2,000 a month, saving $6,000 will allow you to pay your bills for a short time if you lose your main more if you are self-employed and anticipate a lean month, or if you are preparing for a major lifestyle change, like an upcoming move or a new baby
Aiming to save large amounts can feel overwhelming, but you can get started by taking small steps in the right direction. “Aim for an initial target of $500 in emergency savings,” says Bankrate’s Hamrick. “Then automate your deposits, and park your cash in a high-yield savings account where it helps your nest egg to grow.”
2. Open a savings account just for emergencies
Different emergency funds allow you to protect your savings and allow you quick access when you need the money. An online savings account, money market account, money market mutual fund or a separate savings account with your existing bank or credit union can allow you to save emergency funds for the future.
3. Make a budget around savings
You may already have a budget in place to make room for saving more, but make sure you stick to your good habits. Rebuilding your savings, or starting to save for the first time, can be easier by automatically transferring money to your savings each month or taking on side hustles for more income.
The study (that was conducted December 2025) was conducted by YouGov Plc. All figures, unless otherwise stated, are from YouGov Plc. The total sample size was 2,564 U.S. adults. Fieldwork was undertaken between December 2-8, 2025. The survey was carried out online and meets rigorous quality standards. It gathered a non-probability-based sample and employed demographic quotas and weights to better align the survey sample with the broader U.S. population.
The study (that was conducted October 2025) was conducted by YouGov Plc. All figures, unless otherwise stated, are from YouGov Plc. The total sample size was 2,481 U.S. adults. Fieldwork was undertaken between October 14-16, 2025. The survey was carried out online and meets rigorous quality standards. It gathered a non-probability-based sample and employed demographic quotas and weights to better align the survey sample with the broader U.S. population.
The study (that was conducted May 2025) was conducted by SSRS on its Opinion Panel Omnibus platform. The SSRS Opinion Panel Omnibus is a national, twice-per-month, probability-based survey. Data collection was conducted from May 16 – May 19, 2025 among a sample of 1,030 respondents. The survey was conducted via web (n=1,000) and telephone (n=30) and administered in English (n=1,004) and Spanish (n=26). The margin of error for total respondents is +/-3.9 percentage points at the 95% confidence level. All SSRS Opinion Panel Omnibus data are weighted to represent the target population of U.S. adults ages 18 or older.
The study (that was conducted February 2025) was conducted by YouGov Plc. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 3,480 adults, of whom 1,302 have withdrawn emergency savings in the past year. Fieldwork was undertaken between 11th – 14th February 2025. The survey was carried out online and meets rigorous quality standards. It gathered a non-probability-based sample and employed demographic quotas and weights to better align the survey sample with the broader U.S. population.
The study (that was conducted January 2025) was conducted by SSRS on its Opinion Panel Omnibus platform. The SSRS Opinion Panel Omnibus is a national, twice-per-month, probability-based survey. Data collection was conducted from January 3 – January 5, 2025 among a sample of 1,077 respondents. The survey was conducted via web (n=1,047) and telephone (n=30) and administered in English (n=1,048) and Spanish (n=29). The margin of error for total respondents is +/-3.8 percentage points at the 95% confidence level. All SSRS Opinion Panel Omnibus data are weighted to represent the target population of U.S. adults ages 18 or older.
The study (that was conducted December 2024) was conducted by SSRS on its Opinion Panel Omnibus platform. The SSRS Opinion Panel Omnibus is a national, twice-per-month, probability-based survey. Data collection was conducted from December 6 – December 9, 2024, among a sample of 1,039 respondents. The survey was conducted via web (n=1,009) and telephone (n=30) and administered in English (n=1,013) and Spanish (n=26). The margin of error for total respondents is +/-3.9 percentage points at the 95% confidence level. All SSRS Opinion Panel Omnibus data are weighted to represent the target population of U.S. adults ages 18 or older.
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