50% of Americans Couldn't Come Up with $2000

Pete Zicato · 05-24-2011, 09:56 AM

An article here says that 50% of Americans could not raise $2000 in the event of an emergency.

That is a scary statistic. I'm sure the economy is partly to blame, but it's also the fact that many (most?) American families did not save while the economy was good.

Trilby · 05-24-2011, 10:39 AM

Define "emergency" and then I'll know if I can come up with it.

Sundae · 05-24-2011, 10:54 AM

I can't.
There were about 10 years in my life when I could have.
But I was bloody miserable for most of them.

Now I would have to throw myself on the mercy of my brother and my Grandad. Which is certainly not the same thing.

classicman · 05-24-2011, 10:59 AM

I wonder what the % was 5 years, 10 years and 20 years ago.

I wonder if the numbers would be that different.

Pete Zicato · 05-24-2011, 11:08 AM

Here's a graph of savings rates since 1960.

http://research.stlouisfed.org/fred2/series/PSAVERT

Pete Zicato · 05-24-2011, 11:11 AM

Quote:

Originally Posted by Brianna

Define "emergency" and then I'll know if I can come up with it.

The supposition in the article was:

The hypothetical cost "reflects the order of magnitude of the cost of an unanticipated major car repair, a large co-payment on a medical expense, legal expenses, or a home repair."

footfootfoot · 05-24-2011, 11:13 AM

What is $2000 in plasma?

Sheldonrs · 05-24-2011, 11:20 AM

Quote:

Originally Posted by footfootfoot

What is $2000 in plasma?

Blood money? :-)

classicman · 05-24-2011, 12:46 PM

Quote:

Originally Posted by Pete Zicato

Here's a graph of savings rates since 1960.

http://research.stlouisfed.org/fred2/series/PSAVERT

Interesting, savings declined on a pretty consistent basis since the early 80's, then in about 2005 it started to increase dramatically.

Here is the chart for those who don't like to click on links.

HungLikeJesus · 05-24-2011, 01:35 PM

It's also interesting that savings rate seems to jump up when there's a recession and drop off when things are better.

Maybe recessions are caused by people saving money, instead of spending.

tw · 05-24-2011, 03:38 PM

Quote:

Originally Posted by Pete Zicato

An article here says that 50% of Americans could not raise $2000 in the event of an emergency.

I must assume that means 50% are totally maxed out on every credit card. Credit cards are an emergency fund of last resort. One solution for cash flow problems. Difficult is to believe that 50% of Americans are totally maxed out on all credit cards. That article do not discuss this.

wolf · 05-24-2011, 03:50 PM

Given my current situation, perhaps it is unusual that I can say that I am part of the "good" 50% of this statistic.

That may or may not be true in the coming months. But as of today, I'm all right.

Trilby · 05-24-2011, 04:21 PM

Quote:

Originally Posted by Pete Zicato

The supposition in the article was:

The hypothetical cost "reflects the order of magnitude of the cost of an unanticipated major car repair, a large co-payment on a medical expense, legal expenses, or a home repair."

Yeah. Except for the 'legal expenses' the others aren't really emergencies.

If you've gotta pay a co-pay before they will give you treatment, I'm thinking it's not so much of an 'emergency'.

Cars? I can always borrow.

home repair? What are those?

HungLikeJesus · 05-24-2011, 04:38 PM

I cleaned out my car and found $2,000.25 in change down the back seat.

Unfortunately, I spent it all on the quarter car wash.

Sheldonrs · 05-24-2011, 04:46 PM

Quote:

Originally Posted by HungLikeJesus

I cleaned out my car and found $2,000.25 in change down the back seat.

Unfortunately, I spent it all on the quarter car wash.

Why would you get just 1/4 of your car washed?

05-24-2011, 09:56 AM	#1
Pete Zicato Turns out my CRS is a symptom of TMB. Join Date: Jan 2010 Location: Chicago suburbs Posts: 2,916	50% of Americans Couldn't Come Up with $2000 An article here says that 50% of Americans could not raise $2000 in the event of an emergency. That is a scary statistic. I'm sure the economy is partly to blame, but it's also the fact that many (most?) American families did not save while the economy was good. __________________ Talk nerdy to me.

05-24-2011, 10:39 AM	#2
Trilby Slattern of the Swail Join Date: Jul 2004 Posts: 15,654	Define "emergency" and then I'll know if I can come up with it. __________________ In Barrie's play and novel, the roles of fairies are brief: they are allies to the Lost Boys, the source of fairy dust and ...They are portrayed as dangerous, whimsical and extremely clever but quite hedonistic. "Shall I give you a kiss?" Peter asked and, jerking an acorn button off his coat, solemnly presented it to her. —James Barrie Wimminfolk they be tricksy. - ZenGum

05-24-2011, 10:54 AM	#3
Sundae polaroid of perfection Join Date: Sep 2005 Location: West Yorkshire Posts: 24,185	I can't. There were about 10 years in my life when I could have. But I was bloody miserable for most of them. Now I would have to throw myself on the mercy of my brother and my Grandad. Which is certainly not the same thing. __________________ Life's hard you know, so strike a pose on a Cadillac

05-24-2011, 10:59 AM	#4
classicman barely disguised asshole, keeper of all that is holy. Join Date: Nov 2007 Posts: 23,401	I wonder what the % was 5 years, 10 years and 20 years ago. I wonder if the numbers would be that different. __________________ "like strapping a pillow on a bull in a china shop" Bullitt

05-24-2011, 11:08 AM	#5
Pete Zicato Turns out my CRS is a symptom of TMB. Join Date: Jan 2010 Location: Chicago suburbs Posts: 2,916	Here's a graph of savings rates since 1960. http://research.stlouisfed.org/fred2/series/PSAVERT __________________ Talk nerdy to me.

05-24-2011, 11:13 AM	#7
footfootfoot To shreds, you say? Join Date: Aug 2004 Location: in the house and on the street-how many, many feet we meet! Posts: 18,449	What is $2000 in plasma? __________________ The internet is a hateful stew of vomit you can never take completely seriously. - Her Fobs

05-24-2011, 01:35 PM	#10
HungLikeJesus Only looks like a disaster tourist Join Date: Feb 2007 Location: above 7,000 feet Posts: 7,208	It's also interesting that savings rate seems to jump up when there's a recession and drop off when things are better. Maybe recessions are caused by people saving money, instead of spending. __________________ Keep Your Bodies Off My Lawn SteveDallas's Random Thread Picker.

05-24-2011, 03:50 PM	#12
wolf lobber of scimitars Join Date: Jul 2001 Location: Phila Burbs Posts: 20,774	Given my current situation, perhaps it is unusual that I can say that I am part of the "good" 50% of this statistic. That may or may not be true in the coming months. But as of today, I'm all right. __________________ wolf eht htiw og "Conspiracies are the norm, not the exception." --G. Edward Griffin The Creature from Jekyll Island High Priestess of the Church of the Whale Penis

05-24-2011, 04:38 PM	#14
HungLikeJesus Only looks like a disaster tourist Join Date: Feb 2007 Location: above 7,000 feet Posts: 7,208	I cleaned out my car and found $2,000.25 in change down the back seat. Unfortunately, I spent it all on the quarter car wash. __________________ Keep Your Bodies Off My Lawn SteveDallas's Random Thread Picker.

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