Do you have enough money set aside for emergencies?

Despite the importance of financially preparing for the unexpected, nearly a quarter of Americans have no emergency savings, according to a new report from Bankrate.com.

Fortunately, this percentage sits at a six year low, with more Americans establishing an adequate savings cushion – consisting of enough funds to cover six months' expenses or more. Overall, Americans are doing a better job at saving. However, these savings habits vary as we break down the age:

Oldest Americans (63+)

The oldest Americans (63+) report the lowest likelihood of having nothing set aside for a rainy day (17 percent) and the highest probability of at least a six month reserve (44 percent).

Baby boomers

The tendency to have no emergency savings is highest among those ages 53-62, who seem to be all-or-nothing, as they have an equal propensity to have no emergency savings and enough to cover six months' expenses. After that, the likelihood of having zero emergency savings declines substantially.

Generation X and Millennials

While one quarter of Millennials and Generation Xers lack any emergency savings, younger Millennials (ages 18-26) seem to be well on their way. This group has the highest tendency to have enough to cover 3-5 months' expenses (31 percent). Meanwhile, Generation X is most likely to have some savings, but not enough to cover three months' expenses.

While credit card bills, debt, and building a nest egg may not be top of mind for most people, the financial decisions you make today will have a long-term impact on your life.

At Travis Credit Union, we believe in financial education and literacy at every stage of life – which is why we’ve launched our new online Financial Education Hub. Members now have access to a multitude of free financial education courses to help get you onto the right path to financial fitness. Learn more about building an emergency savings and other financial topics by visiting www.traviscu.org/financial-education-hub.

Financial Education Hub