Americans Are Misguided on Emergency Savings, and It’s Going to Cost Them

Maurie Backman | The Motley Fool

We’re warned constantly of the importance of saving for emergencies, but it seems like a large chunk of people missed the memo — or rather, read the wrong one. That’s because 38% of college-educated adults think an emergency fund of $5,000 or less is sufficient. That’s the latest from online lender Laurel Road, which also found that women — particularly younger ones — are generally more conservative when it comes to building their safety nets. Specifically, millennial women think people should have an average of $9,727 in an emergency fund, compared to millennial men who think an average of $8,040 works just fine.

But while $9,727 and $8,040 might seem like reasonable targets to aim for, even these are lowball estimates. And the sooner more people get wise about what constitutes a decent emergency fund, the more protected they’ll be.

Full article at The Motley Fool

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