DES MOINES, Iowa and FARMERS BRANCH, Texas (4/18/13)--Consumers in Iowa and Texas are setting aside some funds for a rainy day, but not enough to cover expenses over the long term, according to surveys recently conducted by leagues in both states.
Nearly 60% of Iowans surveyed by the Iowa Credit Union League said they have a savings account designated for emergencies. However, 28.9% indicated their savings will not cover one month of essential expenses.
About half of the survey respondents said they find it difficult to save for emergency purposes. Less than 48% of Iowans indicated they used their savings to purchase a non-emergency item within the past 12 months.
"Living paycheck to paycheck is not ideal, but it is a reality for many consumers," said Emily Caropreso, director of communications and marketing at the Iowa league. "We need to better show how establishing a saving regimen, no matter how large or small, is an essential step in circumventing serious financial troubles."
In Texas, 79.8% of participants in a survey conducted by the Texas Credit Union League have a savings account designated for unexpected expenses. However, in the event of a job loss, the survey found only 10% could cover essential expenses for six to 12 months. Also, 36% indicated they could cover essential expenses for zero to three months.
About 57% of the Texas survey participants say have used their savings in the past 12 months to purchase non-emergency items.
A nationwide study of family finances by several government agencies indicated only 38% of adults have established an "emergency fund" to fall back on during tough times, the Iowa league said.