42% of New Parents Have No Money or Less Than $1,000 Saved
BOSTON (TheStreet) -- May showers will soon give way to summer sun, but Americans still need to save for a rainy-day fund, and by and large the nation does a lousy job of saving for an emergency, especially for families with young children.
That's the takeaway from BMO Harris Bank, which released a study last week that 32% of young family households haven't saved any money at all for a rainy day.
Another 11% say they have saved less than $1,000 for an emergency -- which usually comes in the form of a health care issue or the loss of a job. In those instances, having $1,000 or less isn't going to come close to providing the income a household needs to make it through tough financial times.
It's not like the heads of households aren't aware of the need for an emergency fund. According to BMO Harris, 90% of U.S. adults say having enough cash to cover a big health issue is a big concern. The survey notes that parents of newborn children spend $9,676 in medical costs for the first year of that child's life.It's not just parents of young children who are struggling with saving money. Americans who say they will have children in the next five years have, on average, $5,523 saved up, but 30% in the same group say they haven't saved anything. BankingMyWay emerging savings calculator. Use it to figure out where you need to be on savings and as a benchmark on how to get there. Above all, don't get caught unaware if a financial storm strikes, and that goes double for parents of young children. Having $10,000 or more in the bank will help you get through tough economic times, and will also help you sleep more soundly at night.
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