The Fact
In the Federal Reserve's 2024 household well-being survey, 55% of adults said they had savings sufficient to cover three months of expenses after losing their main income. Another 15% said they could cover three months by borrowing, selling assets, or using other savings. The remaining 30% said they could not cover three months of expenses by any means.
What This Means
A substantial share of adults has little financial runway if income suddenly stops. That helps explain why job loss, illness, caregiving, or another disruption can become a household crisis very quickly even for people who were getting by beforehand.
Sources
- Federal Reserve Board, Report on the Economic Well-Being of U.S. Households in 2024, Savings and Investments.