The Fact
In the Federal Reserve's 2024 household survey, 63% of adults said they would cover a hypothetical $400 emergency expense entirely with cash, savings, or a credit card paid off at the next statement. The share was unchanged from 2022 and 2023 and below the 68% reported in 2021.
What This Means
A $400 surprise is still large enough to push more than one-third of adults toward borrowing, selling something, carrying a balance, or another method instead of simply paying it from immediately available resources.
Sources
- Federal Reserve Board, Report on the Economic Well-Being of U.S. Households in 2024; Unexpected Expenses data table.