About three in ten Americans have no emergency savings, according to a study conducted by Bankrate.com. This number has increased in recent years, mainly due to the lack of growth in household income. Without an emergency fund, people tend to encounter even greater financial difficulties. A person will often use high-interest debt to cover unexpected expenses. In addition to the 29 percent with no savings, another 21 percent have less than three months worth of expenses saved.

For additional information on emergency savings, click here.

Teaching Suggestions

• Have students ask several people who their might cope with a financial emergency.
• Have students create a plan for creating a emergency savings fund.

Discussion Questions 

1. What are methods that might be used to cope with a financial emergency?
2. How might a person be encouraged to create an emergency fund?