"40% of Americans unable to come up with $400 to pay for an emergency expense"
According to a recent CNBC article: "40% of Americans unable to come up with $400 to pay for an emergency expense"
Here are some takeaways
In households with more than $100,000 of income, 17% of respondents said they would be unable to cover a $400 emergency expense. The article admits that less than 1% actually have less than $400 in the bank but assume this is tied to fixed expenses.
20% of all households have less than $400 in their checking account.
The article tries to use loans as an explanation for the problem but clearly there is something going wrong with the financial situation here.
Do you all have any comments regarding this? I personally think there is a serious problem regarding financial literacy in this country. Especially with the social media comparative culture, people are pressed on to buy something that he/she can show off to their network without fully understanding the role of debt and topics such as compounded interest.