Nearly half of consumers have encountered an emergency expense in the past year, but when it comes to financially preparing for the unexpected many fall short, according to CIT Bank’s new Summer Savings Survey conducted by The Harris Poll.
“More than one in four U.S. consumers do not save for unexpected events such as a home repair or health expense,” said Ravi Kumar, head of Internet Banking for CIT Bank. “Another quarter of consumers report saving less than 5% of their monthly household income for emergencies.”
“Family and credit cards top the list of resources Americans rely on for financial support instead of utilizing a savings account for emergencies,” Kumar continued. “CIT provides consumers the opportunity to make their savings work harder, while ensuring their money remains accessible in the event of an emergency.”
Despite a lack of savings, approximately 8 in 10 consumers say they would sacrifice to save for an emergency expense, including forgoing dining out (56%), online subscriptions (47%), gym memberships (41%), vacations (41%) and ride-sharing services (36%), according to the CIT survey.
CIT also surveyed consumers on saving for vacations. Almost half of Americans say that saving for vacations is a low priority (43%) and another quarter (25%) say that vacation savings is not a priority at all. However, the vast majority (77%) spend on vacations each year with the majority spending up to $5,000.
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