A survey shows that medical bills are feared the most
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55% of Americans fear unexpected medical bills the most, followed by 53% who worry about job loss.
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Nearly 1 in 2 Americans have delayed major life milestones due to financial struggles.
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The average American has $9,899 in emergency savings, but 1 in 16 has less than $500 saved.
Surveys have shown that more than 50% of Americans essentially live paycheck to paycheck, meaning an unexpected expense is a big problem. A new survey by Western & Southern shows just how fragile many household budgets are.
According to the survey, a majority of Americans now say their greatest financial fear is being hit with an unexpected medical bill, cited by 55% of respondents. Job loss closely follows at 53%.
These concerns are grounded in real vulnerability: 2 in 5 Americans admit they're least prepared to handle a medical emergency, while over one in three say they're unready for the possibility of unemployment.
Generation Z (ages 1827) stands out as the most financially fragile. A signifficant 44% report they couldnt afford sudden medical costs, and 38% feel unequipped to weather a job loss. Their peers in the millennial and Gen X demographics arent far behind.
Stress, delayed milestones and career strain
This financial unease extends beyond bank accounts into nearly every corner of American life. About 69% of respondents say money worries have impacted their mental health, a figure that jumps to 76% for Gen Z.
Relationship tension was reported by nearly half (47%) of all participants, while 43% said financial stress affected their job performance or career choices. Among Gen Z, the toll is even more severe: 62% experienced strain in relationships and 60% said their work was impacted.
Nearly half (48%) of Americans have postponed major life events due to financial constraints, from buying a home to starting a family or switching careers. Millennials reported the highest rate of delay, with 56% deferring significant milestones.
Emergency savings
While the average American has $9,899 saved for emergencies, that number masks troubling disparities. One in 16 has less than $500 stashed away, and more than a third couldn't handle an unexpected $1,000 expense out-of-pocket.
Generation Z is especially at risk. Their average emergency savings total just $7,317, and nearly 1 in 5 say theyd exhaust their funds in under a month without income. By contrast, 52% of baby boomers say they could survive six months or more.
Despite this, younger generations are more optimistic about their financial future. Forty-two percent of Gen Z and 38% of millennials say they feel more financially secure than they did five years ago, a sharp contrast to 42% of Gen X, who feel less prepared today.
Side hustles and borrowing
To cope with economic uncertainty, many Americans are diversifying their income streams. Sixty percent have taken on second jobs or side hustles, with Gen Z leading the charge at 68%.
Still, when emergencies hit, not everyone can rely on their savings.Thirty-seven percent of Americans have borrowed an average of $4,300 to cover unexpected expenses. Gen Z was again the most affected, with 39% reporting a serious financial crisis in the past year.
When asked how theyd cover emergency costs, Gen Z was least likely to use credit cards (41%) and most likely to borrow from family or friends (38%).
Posted: 2025-07-16 11:49:26
