CNN: 40% of Americans can’t cover a $400 emergency expense

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CNN: 40% of Americans can’t cover a $400 emergency expense

A report out this week shows that four in ten Americans couldn’t afford to pay an unexpected $400 expense.

It’s emblematic of a larger issue: Too many people, in Ohio and beyond, are going into debt paying for healthcare, or are seeing their pensions slashed because of Wall Street’s greed. Just this week, Congress passed a bill cutting back regulations for big banks, putting the public in jeopardy of another financial crisis. Instead of helping struggling families—like those who can’t cover a $400 emergency expense—get ahead, we’re moving in the wrong direction.

We need to look out for all Americans, not just those at the top. That’s what Sherrod believes, and it’s what he fights for every day in the Senate. If you’re with him, show your support now.

40% of Americans can’t cover a $400 emergency expense

Anna Bahney – CNN

Key points:

  • According to a new report from the Federal Reserve Board, four in ten Americans couldn’t pay an unexpected $400 expense.

  • While that’s an improvement from half of adults being unable to cover such an expense in 2013, the number is still concerning, experts said.

  • “The finding that four-in-ten adults couldn’t cover an unexpected $400 expense without selling something or borrowing money is troubling,” said Greg McBride, chief financial analyst at Bankrate.com. “Nothing is more fundamental to achieving financial stability than having savings that can be drawn upon when the unexpected occurs.”

  • The report shows that hardship continues for people working to repay college loans, cover emergency expenses, and manage retirement savings. There are also gaps across race, ethnicity, education levels, and geography.

  • Some of this may be due to the lack of employer-sponsored retirement plans, as well as people piecing together several part-time jobs, which may not offer benefits.

Read more here.