Starting From Zero: Nearly 1 in 4 Americans Have No Emergency Fund—and Most of Them Are Women

Having an emergency fund is essential for renters and homeowners alike.

Fortunately, a new survey by the Harris Poll for the AICPA for Financial Literacy Month found that 78% of adults have at least some money stashed away for living expenses.

However, the amounts saved and who holds them varies greatly.

“On the surface, it seems encouraging that a large percentage of people have some kind of savings, but the details tell a far more important story. There is a meaningful difference between having a small cushion and having a true emergency fund that can carry you through job loss, divorce, or death,” explains Ashley Morgan, bankruptcy attorney and owner at Ashley F Morgan Law, PC in Chantilly, VA.

Additionally, there are still far too many people who haven't put any money away. Women, for example, are more likely to have no savings at all, according to these findings.

Whether you currently own a home or plan to in the near future, this data highlights the importance of building a substantial emergency fund—regardless of your age or gender. A small buffer may not be enough when life throws a curveball.

Wide gaps in emergency savings

Of those surveyed, 20% have less than three months of expenses saved, 24% have three to six months, 10% have seven to nine months, 6% have 10 to 11 months, and 18% have a year or more.

Notably, those 65 and over reported actually having at least 12 months saved, while only 10% of adults 18 to 54 reported a year or more, compared to 25% of the 55 to 64 group.

Most shockingly of all, 22% of participants have no emergency savings.

The minimal or lack of emergency savings isn’t surprising as expenses have increased across the board. 

“Housing costs remain high. Insurance premiums have gone up. Grocery bills are noticeably higher than they were just a few years ago. Even households with steady incomes are finding that their money does not go as far, which makes it harder to build or maintain savings,” says Morgan.

At the same time, there is more uncertainty around employment in certain industries. Layoffs, restructuring, and reduced hours are not uncommon. When someone has limited savings, even a short period without income can create stress and immediate financial struggles.

“While it’s encouraging that most Americans have some savings, the fact that a large portion have less than three months of expenses, or none at all, is problematic. It shows that many households are one disruption away from financial stress,” says Tessa Steinemann, managing partner and chief financial officer at True Alpha Wealth Management in Sandusky, OH.

Steinemann points out that this data aligns with what she sees in her younger clients.

“A lot of them are just starting to think about investing even though they have a lot of debt and no emergency savings. In this case, we take a step back, reprioritize, and create a plan,” Steinemann explains.

The study also shed light on savings differences between men and women: About 25% of women revealed they have no money saved, compared with 17% of men.

Zachary Mineur, chief investment officer at Independence Square Advisors in King of Prussia, PA, points out that these gender figures are concerning as more than 20 million single women now own their homes.

“Despite this, they're entering homeownership with smaller emergency funds and, on average, lower incomes than their male counterparts. They don’t have someone to rely on for financial support,” Mineuer explains. 

What this means for homeowners

At the end of the day, homeownership is riskier than renting.

If you lose a job or get divorced as a renter, you can break your lease, downgrade to a cheaper apartment, or move in with loved ones.

However, if you find yourself in a similar position as a homeowner, things get more complicated. You’re still responsible for your mortgage payments as well as property taxes and home insurance costs, which will likely go up cover time. 

And unfortunately, three missed mortgage payments can initiate the foreclosure process and cause you to lose your home.

Plus, if you need a new HVAC unit or roof, there’s no landlord to save the day. It’s up to you to come up with thousands or even tens of thousands of dollars to pay for them. 

“I generally advise that homeowners hold a separate line item of 1% to 3% of home value annually for maintenance, on top of their living-expense emergency fund. For a $400,000 home, for example, that's $4,000 to $12,000 a year more that should be in that savings fund,” Mineur explains.

If you’re struggling to save enough as a homeowner, it’s time to make some changes. Depending on your situation, you might want to cut back nonessential expenses, pick up a side hustle, or sell unwanted items.