TULSA, Okla. — High prices at the gas pump and the grocery store are squeezing Americans' ability to save for unexpected expenses.
A recent study by Deposit Accounts at LendingTree found that 37% of Americans have less than $500 in cash savings, including 14% who have no cash savings at all. If their income suddenly stopped, 45% say they would not be able to cover more than one month of essential expenses.
LendingTree's Matt Schulz, noted many are struggling to build their accounts.
"And plenty of people are not putting any money into savings at all in a given month."
According to the study, 31% of Americans do not put any money into savings in a typical month. When asked what is holding them back, 34% of consumers point to the rising cost of living and everyday essentials.
"Inflation just keeps sticking around and, and gets stickier and stickier, and as prices of gas and groceries and other things rise, there's just less to put towards savings, and, and that's just an unfortunate reality of life right now," Schulz said.
2 News Oklahoma met Kate Brown during her run at River Parks. She feels good having an emergency account for unexpected bills, but admits keeping it funded is hard.
"So far, yes, but we, uh, we had to move in with our in-laws in order. Cut down on costs, to be honest with you, we've had to make sacrifices in other places," Brown said.
The LendingTree report shows 66% of people tapped into their savings over the past year, most often to pay for food and other essentials. Nearly 29% now have less in cash savings than they did a year ago, while just 25% say they have more.
Without emergency savings, many turn to credit cards to cover unexpected expenses.
"When there's no savings, you're really kind of walking that tightrope without a safety net under you," Schulz said.
Brown uses credit cards for big expenses but pays the balance off every month to avoid high interest rates. The average credit card currently charges 24% interest if you carry a balance.
"It just accumulates and accumulates, and then it's like a snowball that just keeps getting bigger," Brown said.
According to the study, just 22% of people say they are saving more each month than they were a year ago. Among those increasing their savings, 56% are contributing less than $250 more per month.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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