A new study shows millennials are delaying life events due to being in debt. Elizabeth Keatinge has more. Buzz60

While many of us say we’re willing to make some sacrifices to prepare for the unexpected, that’s not usually how things play out in reality.


The majority of Americans are not setting aside enough money in emergency savings to cover a significant unexpected expense, according to a new survey from CIT Bank. That’s a problem, because nearly half of American households were faced with emergency expenses in the past year.

“More than one in four U.S. consumers do not save for unexpected events such as a home repair or health expense,” said Ravi Kumar, head of Internet Banking for CIT Bank in a press release. “Another quarter of consumers report saving less than 5 percent of their monthly household income for emergencies.”

How are people paying?

Experts generally recommended that your emergency fund be large enough to cover three to six months of your household expenses, but those numbers aren’t set in stone. If you have a job where your income is not stable, for example, or a health insurance plan with a high deductible, it might make sense to have an even larger cushion.