Conventional wisdom dictates that consumers should have an emergency fund with enough money to cover three to six months’ worth of living expenses — but in reality, 42% of Americans don’t have an emergency fund at all, according to a U.S. News survey.
Between Jan. 8 and 15, 2025, U.S. News ran a nationwide survey of 1,207 Americans, conducted through PureSpectrum. We asked respondents questions about their financial well-being, including if they have an emergency savings fund, how they might handle an unexpected expense and whether they have any financial goals for 2025. Here’s what we found:
— Two in five Americans (42%) don’t have an emergency savings fund. Nearly as many (40%) couldn’t cover a $1,000 emergency expense with cash or savings, though 60% said they’d had an unexpected expense pop up in the past year.
— The gender wealth gap is evident in our survey. Nearly half of women (49%) don’t have an emergency fund, compared with just 36% of men who don’t. They also have lower balances: Among women who have an emergency savings, the median balance is $6,500. It’s $11,000 among men.
— Among those who have an emergency fund, the median balance is $10,000. Most (62%) said their savings could cover at least four to six months’ worth of living expenses, and one in six (17%) said their emergency fund could keep them afloat for more than a year.
— The vast majority of Americans (82%) have a financial goal for 2025. The most common goals revolve around saving money and paying off debt, although many consumers are worried that they’ll need to tap into their rainy day fund this year.
— Most Americans (56%) consider their emergency savings fund and their savings account separate, although 44% do not. In fact, about a fifth of Americans (21%) tapped into their emergency fund to help pay for holiday spending.
[See: Best Savings Accounts in 2025]
42% of Americans Don’t Have an Emergency Fund
It’s impossible to overstate the value of having a robust emergency savings fund to cover unexpected expenses like car repairs or medical bills. Having a financial cushion also ensures your bills are paid in case of sudden job loss. Money isn’t everything, but it is food on the table and a roof over your head.
That said, it’s obviously quite worrying that 42% of Americans don’t have a rainy day fund, especially when you consider that 60% said they had an unexpected expense crop up in the past year.
Additionally, two in five (40%) wouldn’t be able to cover a surprise $1,000 expense right now using cash or savings.
Demographic Analysis: The Gender Gap
It’s disappointing, yet probably expected, that women are less likely to have an emergency fund than their male counterparts. Nearly half of women (49%) don’t have an emergency fund, compared with just 36% of men who don’t.
Women also have lower balances in their emergency fund compared with men, at $6,500 versus $11,000. In other words, the typical woman’s emergency fund is worth about 59% as much as that of the typical man.
Additionally, just 51% of women could cover a $1,000 emergency expense right now, compared with 70% of men who could.
There could be many societal factors responsible for this gap that aren’t made clear within our data. But the survey did find that women are more likely to be stay-at-home parents (8% of them are, compared with 2% of men. They’re also more likely to be unemployed or employed only part-time when compared with men, who are more likely to identify as self-employed or full-time employees.
Having an Emergency Fund Pays Dividends
It should come as no surprise that those who have an emergency fund are in better financial shape than those without one. Ninety percent of Americans who have an emergency fund could cover a surprise $1,000 expense in cash or savings, compared with just 20% of those without an emergency fund who say they could.
The good news is that most Americans do have an emergency fund, and they’re actually managing it surprisingly well, with a median balance of $10,000. Most (62%) said that their emergency fund could cover at least four to six months’ worth of expenses, and a significant portion (17%) can support themselves for more than a year on their savings.
Most Americans keep their emergency funds somewhere safe and easily accessible, like a savings account (55%) or checking account (17%). Still, you want to ensure your money is growing to keep up with inflation — kudos to those who keep their rainy day fund in a high-yield savings account (10%) or a money market account (6%),
A small number use certificates of deposit (5%), which are less accessible in an emergency, or stocks (4%), which run the risk of losing value. A few respondents said that they keep their emergency fund at home in a cash safe — it’s probably more prudent to keep your savings in a Federal Deposit Insurance Corp.-insured bank in case of theft or natural disaster, though.
The No. 1 Money Goal in 2025: Build Emergency Savings
By now, there’s no questioning the importance of having an emergency fund — and it’s also clear that not enough Americans have one. Thankfully, saving up is the most common financial goal for Americans in 2025.
About four in five Americans (82%) have a 2025 financial goal, most notably saving money, paying off debt, buying a car or home, investing, and saving for retirement. Many 2025 financial goals were bullish:
— “Pay off mortgage of current home. Save enough money to make down payment on a second house.”
— “Build an emergency fund covering at least six months of living expenses. Invest in a diversified portfolio to grow wealth over the long term. Pay off any high-interest debt.”
— “Buy an investment property to rent out for extra income.”
While other goals highlighted the entrepreneurial spirit of the American consumer:
— “Get rich or die trying.”
— “Become a millionaire and move out of my mom’s house.”
— “Buying as much bitcoin as I can possibly afford.”
And some goals prove that you can’t put a price tag on love:
— “Save for college for our daughter.”
— “Saving for my wife and grandchildren’s future.”
— “Get a job to pay back my family.”
— “To have enough money to care for myself and my kids.”
— “Saving to take my daughter to Disney and saving to buy a house.”
— “Save up to buy a Harley-Davidson motorcycle and take my wife on a cruise.”
If building up your emergency savings is among your top financial goals in 2025, here’s a tip: Set up an automatic transfer from your paycheck directly into your emergency fund. For example, if you get paid biweekly and aim to contribute $500 per month into your emergency fund, use your bank’s bill management platform to deposit $250 per paycheck into your savings. Keep your emergency fund in an interest-bearing account to watch your balance grow.
[Read: Best Online Banks.]
Note: Write-in survey responses may have been edited for clarity.
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Survey: 42% of Americans Don’t Have an Emergency Fund originally appeared on usnews.com
