Just 47% of Americans say they have enough savings to cover a $1,000 emergency expense, according to a new Bankrate survey. As households prioritize saving money in 2026, the data reveals a split focus: nearly one-third of Americans are equally committed to building emergency funds and paying down debt, while 29% prioritize emergency savings and 21% focus primarily on debt payoff.
A January 2026 survey by the American Institute of CPAs found that 92% of Americans have financial goals for 2026, with 77% naming saving money as a top priority. This widespread intent masks a troubling reality: 58% of Americans report having less or the same amount of emergency savings as they did a year ago, and nearly one-quarter have no emergency savings whatsoever.
Inflation remains the primary obstacle to saving. According to the Bankrate survey conducted in December 2025, 54% of Americans say they are saving less for emergencies because of rising prices. Higher living costs have made it harder for households to set aside cash, even as experts recommend maintaining three to six months of living expenses in an accessible fund.
The challenge cuts across income levels. Among those earning over $80,000 annually, 30% managed to grow their emergency savings in 2025. That figure drops to 21% for those earning $40,000 to $79,900, and just 12% for those earning under $40,000. Higher earners also reported greater success: 27% of those making at least $100,000 per year increased their savings, compared with 11% of those earning less than $50,000.
When facing a major unexpected expense, Americans rely on multiple strategies. Only 30% say they would pay for a $1,000 emergency from savings. Another 17% would use regular income or cash flow, while others turn to credit cards (17%), borrow from family or friends (12%), or reduce spending elsewhere (10%). A personal loan accounts for just 3% of responses.
The split between emergency savings and credit card debt underscores the balancing act many households face. According to Bankrate, 29% of Americans have more credit card debt than emergency savings, while 44% have more savings than debt. An additional 31% feel that building emergency savings and lowering credit card debt are equally important priorities.
Experts recommend starting small. Bankrate’s Stephen Kates, a certified financial planner, suggests that “most American households want to grow their savings, but few are making meaningful progress right now.” He advises focusing on a single priority first—either emergency savings or debt reduction—rather than trying to tackle both simultaneously. Many financial professionals suggest beginning with a starter fund of $500 to $1,000 before working toward the recommended three to six months of living expenses.
Sources
- Bankrate — 2026 Annual Emergency Savings Report; survey data on emergency fund adequacy, savings priorities, payment methods, inflation impact, and year-over-year savings changes (conducted December 2025)
- American Institute of CPAs (AICPA) — 2026 financial goals survey showing 92% of Americans have goals, 77% prioritize saving, and generational breakdowns of financial priorities
