Why you should start saving for emergencies

Saving for emergencies is, and should be, a top priority for every American. Maintaining an emergency savings account may be the most important difference between those who manage to stay afloat and those who sink in debt. That’s because keeping $500 to $1,000 of savings for emergencies can allow you to easily meet unexpected financial challenges such as:

  • repairing the brakes on your car;
  • buying your child a new pair of needed shoes;
  • replacing a broken window in your house;
  • paying for a visit to the doctor when your child has the flu;
  • covering the dental expense of filling a painful cavity;
  • paying for a parking ticket; or
  • flying to visit a sick parent.

The emergency fund not only provides you with the money to pay for these expenses, it also gives you “peace of mind” knowing that you can afford these types of financial emergencies. Not having an emergency savings fund is one of the reasons many individuals borrow too much money at high interest rates. For example, by saving for emergencies, the twelve million American adults that use payday loans annually would probably not have to take out eight loans of $375 each per year and spend $520 on interest (Pew July, 2012 Study).  

Learn more:

 

 

 

 

Take the Pledge

I pledge to save money, reduce debt, and build wealth over time. I will encourage my family and friends to do the same

Take the America Saves Pledge

Tip of the Day

  • In 2012, the average credit card debt among adults aged 65+ was $9,283.

Share Your Tip or Story

And if we feature you in our newsletter, you get $25.

Share

Saver Stories View all »

Jump-Starting a Financial Makeover

Nichelle Johnson, a single mom with two teenage children, knows what it’s like to stretch a dollar. When she moved back to Virginia Beach in 2008, she provided for her family with just a part-time library position.

Read more...

Challenging Herself to Save

It all started when Marchale Burton overheard Alabama cooperative extension colleague Isaac Chappelle, coordinator of Alabama Saves, explaining how saving just a little bit – even change – is all it takes to become a saver. “I thought about that,” Burton said, “and wanted to see if it would work.” So, she challenged herself to see how much change she could save.

Read more...

Getting Out of Debt

In 2004, Tonya Shelton was facing financial ruin. Barely making more than minimum wage and having lost her home to an unexpected family crisis, Shelton and her family were forced to live in a rundown hotel.

Read more...

Receive Updates

Sign up for Texts

Sign Up

Sign up for Emails

Get Emails

Take the Pledge

Start Saving