One-Fourth Of Consumers Lack An Emergency Financial Plan

Thu, 01 April 2021  |  financial planning demographics 

No one would disagree that the recent pandemic has profoundly affected life as we know it, both from a personal and financial perspective. ScoreSense's study of over 1,000 consumers concerning preparing for emergencies revealed that, as people scramble to make ends meet, more than 6 in 10 consumers are happy with their emergency financial preparations, despite the results of those preparations.

The survey asked respondents about their financial preparedness for recent and future emergencies. Its findings include:

• 26% of consumers do not have a financial plan in place for the next emergency.
• 63% of consumers are happy with their emergency financial preparations, but 59% will still increase their savings to prepare for the next emergency.
• 38% of consumers have at least $5,000 in savings, a primary revenue source during the COVID-19 pandemic emergency.
• The youngest consumers (Gen Z) are the most vulnerable when it comes to emergencies. This age group is least likely to have an emergency plan, most likely to open a credit card or secure a new loan as a response to emergencies, and most likely to start a new side hustle as a response.

"It was encouraging to find that over 6 in 10 consumers were happy with their financial preparations," said a spokesperson for ScoreSense. "But those consumers who were not prepared and were affected by layoffs and business closures are truly struggling to stay afloat during this trying time."

Overall, Americans believe they are mostly prepared for financial emergencies. This is important considering the current COVID-19 pandemic. Responses to future planning vary widely by environment and demographics. Financial preparation outlooks are positive for most groups, despite their current individual situation.

Full Study: https://www.scoresense.com/emergency-preparation-study/

All figures, unless otherwise stated, are from PeopleFish. This study was conducted from a sample of 1,080 consumers in the United States aged 18+. The margin of error for total respondents is +/-3% at the 95% confidence level.

Source: ScoreSense