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44% of Americans can't pay an unexpected $1,000 expense from savings. ‘We're just not wired to save,’ expert says

www.cnbc.com 44% of Americans can't pay an unexpected $1,000 expense from savings. ‘We're just not wired to save,’ expert says

Building an emergency savings fund is a difficult task for Americans. Both the economy and the way we're psychologically wired may be to blame.

44% of Americans can't pay an unexpected $1,000 expense from savings. ‘We're just not wired to save,’ expert says

When faced with an unexpected $1,000 expense, more than one-third of Americans would borrow the money, according to a new Bankrate survey. That may include tapping their credit cards, seeking money from friends or family or taking out a personal loan.

Most would not turn to cash savings because they don’t have it, the personal finance website found.

Fewer than half of Americans, 44%, say they can afford to pay a $1,000 emergency expense from their savings, according to Bankrate’s survey of more than 1,000 respondents conducted in December.

That is up from 43% in 2023, yet level when compared to 2022.

“We’re just not wired to save,” said Brad Klontz, a certified financial planner and expert in financial psychology and behavioral finance. Our brains are instead programmed to focus on our immediate needs.

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