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.

  • Binthinkin@kbin.social
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    10 months ago

    I sold my car and quit driving altogether and bought a bike and scooter and I save money now.

    If I made more money I could have that luxury but take a look around, so many car loans are shit. The cars are shit too. And drivers keep getting worse imo.

    Cars are a huge drain on the wallet and an unnecessary expense for many.

    • Snot Flickerman@lemmy.blahaj.zone
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      10 months ago

      Good for you!

      Of course, because of the car-centric nature of the US, you have to already live in area that a bike or scooter can get you around in. That discounts a lot of the rural US.

      • kick_out_the_jams@kbin.social
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        10 months ago

        Cars are regularly called money pits.

        Owning almost any type of vehicle is going to necessitate maintenance, there’s a classic saying that the two best days in a boat owner’s life are the day they buy the boat and the day they sell the boat.