Rainy day funds growing more common, survey says

12.30.08
By Sarah Beldo

Uncertainty about the current economic situation in the U.S. is prompting people to set aside money in an emergency rainy day fund, a new survey suggests.

Visa polled more than 1,000 people about their savings intentions and found that 30 percent were putting money into this type of account.

In fact, a higher proportion of people reported saving for an emergency than were saving for retirement (20 percent), education (10 percent) or to purchase a home (8 percent.)

The results echo other recent findings which suggest Americans have recently shifted their focus away from spending and toward paying off credit card debt, paying down home loans and saving for the future.

"Having money set aside for financial emergencies is always a good idea and is particularly important in today's economic climate," commented Jason Alderman of Visa.

Some financial experts advise people to aim to have sufficient savings to cover six months' worth of expenses in case of a crisis, as well as obtaining a credit report in order to ensure you would have access to sufficient credit if needed.

The most recent figures from the Department of Commerce seem to indicate that many people are already taking the hint - households' average savings levels rose between October and November.

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