Gen Z Workers Are Falling Behind on the Most Basic Money Milestone: Emergency Savings

Emergency savings represent the most basic financial buffer that can separate a surprise expense from financial ruin. Nearly every financial advisor recommends keeping three to six months of expenses set aside for emergencies. Yet Yahoo reported that 62% of Gen Z lacks even one month of non-retirement savings. When the next unexpected car repair, medical bill or layoff hits, most of this generation has almost nothing to absorb it.

Zachary Mineur, CFA, CFP® was quoted in Money Lion emphasizing why not having an emergency fund is a slippery slope:

“An inadequate emergency fund is like building the foundation of a house right on the beach. The tide is going to come in eventually and the results can end up costing much more than the original domino that fell. Without a buffer to draw on when needed, a single emergency can start a downward spiral of debt and interest that can be difficult, if not impossible, to get out of.”