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. What’s more, the survey also found that many consumers don’t have the savings to afford the planned expense of the vacations they take.
“More than one in four consumers don’t save anything for unexpected events such as a home repair or health expense,” says Ravi Kumar, head of Internet Banking for CIT Bank. “Over another quarter report saving less than 5 percent of their monthly household income for emergencies.”
How are consumers making ends meet? Family and credit cards top the list of resources Americans rely on for financial support during emergencies. As for the planned expense of a vacation, approximately one in three (29 percent) report taking extreme actions to pay their way, including taking out a bank loan, going into debt, cleaning out a savings account, borrowing money or maxing out a credit card.
“Americans can do more to ensure their lifestyles and savings priorities are aligned,” says Kumar. “But saving wisely is key.”
To plan the monthly amount that you’ll need to save for peace of mind, utilize free resources, such as CIT Bank’s online calculators at bankoncit.com/calculators. Then, consider looking for an account that will make your savings work harder and offer some flexibility. For example, with a Money Market Account from CIT Bank, consumers can earn interest on their savings while maintaining the option to make withdrawals at any time. With no monthly maintenance fees, a minimum account balance requirement, and transaction capabilities, consumers can save without sacrificing their earnings throughout the process.
Do you have enough savings for planned and unplanned expenses? When it comes to happy occasions, like vacations, as well as the unexpected, being prepared can safeguard you against zeroing out your account or going into debt.
–Courtesy of StatePoint