Only 63% Of Americans Have Money To Cover A $400 Emergency - Fed Survey

Fahad Shabbir (@FahadShabbir) Published May 22, 2023 | 10:36 PM

About a third of Americans do not have enough cash even to cover a $400 emergency, a Federal Reserve survey on living standards shows, as citizens in the world's largest economy continue to see their living standards eroded by inflation

WASHINGTON (UrduPoint News / Sputnik - 22nd May, 2023) About a third of Americans do not have enough cash even to cover a $400 emergency, a Federal Reserve survey on living standards shows, as citizens in the world's largest economy continue to see their living standards eroded by inflation.

"The share of adults who reported that they would cover a $400 emergency expense using cash or its equivalent was 63 percent. This was down 5 percentage points from a high in 2021," said the report on the Fed's Survey of Household Economics and Decisionmaking, or SHED, released on Monday.

The survey, conducted on 11,000 American adults, noted that 13% would be unable to meet a $400 emergency expense by any method � a number the Fed said was "slightly higher" than previously.

The survey also noted that 73% of adults reported doing okay or living comfortably financially in the fourth quarter of 2022. That was, however, down 5 percentage points from the previous year and among the lowest levels observed since 2016, the central bank said.

"Consistent with these changes in overall financial well-being, fewer adults reported having money left over after paying their expenses," the SHED report said. "Fifty-four percent of adults said that their budgets had been affected 'a lot' by price increases."

Those disproportionately impacted by higher prices include parents living with children under 18, Black adults, Hispanic adults, and those with disabilities.�