How much money would it take for you to feel financially prepared? New research reveals that the average American doesn’t feel prepared for the worst until they have $5,078 saved.
According to a survey of 2-thousand working Americans evenly divided by generation (500 each of Gen Z, millennials, Gen X and baby boomers), Gen Z needs less in the bank to feel secure, at least $4.286. Baby boomers would prefer to have nearly $65-hundred ($6,490), and Gen X would feel prepared with a bank account balance of closer to $5-thousand ($4,910).
The poll also finds:
- Nearly two-thirds (63%) would be able to cover an unexpected $500 expense, but 30% confess that they couldn’t.
- Another 17% admit they couldn’t afford that expense currently, but think they’d eventually be able to find a way to pay for it.
- To cover the cost, 32% would dip into savings, 28% would ask a loved one for help and 26% would cover the unexpected expense by temporarily not paying other less important bills.
- For 72% of respondents, most of their paycheck goes to paying bills, with 69% saying it’s the first thing they do when they get paid.
- When they first get their paycheck, 29% feel “excitement,” but that’s quickly followed by stress (19%), feeling prepared (19%) and overwhelmed (19%).
- Before payday, 39% say they’re less likely to attend social events so they have money for when they really need it.
- That’s one way to avoid the feeling of “pay paralysis” - a “wave of anxiety or fear due to low funds between pay cycles,” which 59% of people experience.
- Respondents start to feel stressed about their finances seven days after getting paid, on average.
- The average American loses five nights a sleep a month from worrying about money.
Source: SWNS Digital