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.

  • N-E-N@lemmy.ca
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    9 months ago

    Controversial thought maybe, but I indeed have many friends who should and could afford to save, and choose not to.

    None of these friends are wealthy or have high salary’s, they’re just bad with money

    • EatATaco@lemm.ee
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      9 months ago

      Yeah, I’m curious as to what percentage of that group simply can’t afford to save, and the percentage that simply choose to spend instead. Like you, I know people who certainly could be saving money, but instead have new phones all the time and also are driving leased luxury cars.

    • lepinkainen@lemmy.world
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      9 months ago

      Saving is slow and boring, it’s easier just to get a credit card and buy something cool. Much more of a rush va seeing a number go up a tiny bit every month.