An unexpected financial setback can detonate a monetary grenade on your carefully crafted monthly budget.
Car repairs or medical bills can crop up at any time. A job loss can leave you without income you were counting on to pay your bills. An emergency fund can soften these blows, and experts generally recommend that you have between three and six months’ worth of living expenses saved up to prepare for these types of financial curveballs.
But many Americans don’t even have enough saved to cover a $1,000 car repair or one month of living expenses, according to a U.S. News survey.
U.S. News conducted a nationwide survey of 1,216 American adults via PureSpectrum between Jan. 16 and 20, 2026. We explored respondents’ financial well-being, specifically asking about their emergency savings, plans for handling unexpected expenses, and financial goals for 2026. Here’s what we found:
— More than two in five Americans surveyed (43%) couldn’t pay for a $1,000 emergency expense with their savings. One-third say they don’t have enough savings to cover even one month of living expenses.
— Among those who have an emergency fund, the median balance is $5,000. That’s half the amount respondents reported in this survey last year. When asked how much they’d like to have saved for emergencies, the median amount listed is $10,000.
— There remains a gender gap when it comes to emergency savings. Nearly half of women surveyed (48%) say they don’t have an emergency fund, while just one-third of men don’t have one. And while 64% of men say they could pay for a $1,000 emergency expense with savings, only 52% of women could.
— Student loans may hamper Americans’ ability to contribute to their emergency funds. More than two-thirds of student loan borrowers surveyed (69%) say they are at least somewhat concerned that policy changes coming in 2026 — which could result in higher monthly payments for many — will impact their ability to contribute to their emergency fund moving forward. More than 40% say they are very concerned.
— Nearly one-quarter of Americans surveyed (23%) tapped into their emergency fund for holiday purchases. Younger people were more inclined to dip into their emergency savings for the holidays, with 36% of those age 44 and under saying they did so this past year.
[Read: Best Savings Accounts.]
Many Americans Aren’t Prepared for a Financial Setback
A robust rainy day fund provides a financial cushion should you incur an unexpected expense or lose a source of income. It can prevent you from taking on debt or raiding retirement accounts to cover costs.
But the survey suggests that many Americans aren’t in position to withstand an emergency expense or even a short-term job loss. More than 40% say they have no emergency fund at all, and one-third say they simply couldn’t cover even one month of living expenses with their savings if they needed to. The majority of Americans (59%) say they could cover no more than three months of living expenses.
Continuing a trend that was present in previous surveys, women remain behind men in multiple gauges of emergency savings health. Nearly half say they don’t have an emergency fund, and almost two in five women say they don’t have savings to cover one month of living expenses.
When asked what’s preventing them from contributing more to emergency savings, women are more likely than men to point to low income as the top factor.
On a positive note, more younger Americans say they are building up their emergency savings. About 65% of those surveyed ages 44 and under say they have an emergency fund, up from 58% last year. More than three-fourths of those ages 18 to 24 have emergency savings, by far the highest of any age group in the survey.
[See: Best High-Yield Savings Accounts: Up to 4.57% — February 2026]
How Does Your Emergency Fund Balance Stack Up?
America’s emergency funds aren’t growing. In fact, they showed a decline since last year, according to the survey results. The median balance respondents report having in emergency savings is $5,000, just half of the $10,000 reported in 2025.
The average amount held in emergency savings is about $30,000, although that figure is inflated by a smaller group of respondents who say they have high balances.
Respondents say they would prefer to have much more robust emergency savings . The average target balance that Americans are seeking for emergencies is nearly $50,000, although the median desired amount is a more modest $10,000.
Most of those who have emergency funds say they contribute to it monthly, although some also report dipping into those funds for nonemergencies. For example, nearly one-quarter say they used emergency savings for holiday purchases this past year.
High Living Costs, Student Loans, Stagnant Wages: Why We Aren’t Contributing More
Respondents point to several reasons why they struggle to contribute more to emergency savings, with the leading factor being the overall high cost of living. About 29% of women cite low income as the biggest factor preventing them from saving more, compared with 23% of men.
Student loan borrowers in the survey say they expect to face more challenges saving in 2026 and beyond. With several affordable federal repayment plans getting eliminated or phased out, many borrowers expect they’ll have to make higher monthly payments. More than two-thirds say they’re concerned those higher payments will restrict their ability to make savings contributions.
[Read: Best Checking Accounts.]
Financial Goals for 2026: Here’s What Americans Are Trying to Achieve
About two-thirds of those surveyed say they’ve set a financial goal for the upcoming year. While still a majority, it’s notably less than the 82% who last year reported having milestones or targets they hoped to achieve.
Among the most popular goals are paying down debt and saving for purchases such as a car, home or vacation.
While many respondents cite specific dollar figures or savings targets, others say their goals are more about developing better financial habits.
“I am watching spending more carefully and just taking care of my needs and not my wants,” says one man who has $7,000 tucked away for emergencies.
This article was edited by Mark Evitt and Reviewed by Ray Frager.
More from U.S. News
Where to Save Your Money Now That Interest Rates Are Lower
2026 Banking Predictions: What to Expect with Rates, Scams and More
Survey: Gen Z, Millennials Are Ditching the Credit Card for Other Payment Methods
Survey: 43% of Americans Don’t Have Savings to Pay for a $1,000 Emergency originally appeared on usnews.com
