NORTHAMPTON, Mass. (WWLP) – 66 million American adults have no money saved for an emergency.
Emergency savings allows you to set aside funds to be used in an emergency, such as the loss of a job, an illness or a major expense. Experts recommend putting aside three to six months worth of expenses into a savings account
It’s easy to get started with a savings account. You can set up an automatic savings plan with your bank and transfer a set dollar amount from your checking, each week, or every pay period. Florence Bank in Northampton believes in the importance of emergency savings accounts.They recommend setting one up to all their new checking customers.
Beverly Beaulieu, Director of Retail Banking, Florence Bank told 22News, “I think we tend to live paycheck to paycheck so whatever we have in hand we spend”. “If you put aside and forget about it, it’s there in case of an emergency”.
Savings accounts do not have to refer to large purchases, they also can help with retirement.
“I’m still working, but I’m not going to work forever so you have to have something to live on”, said Von Creek of Westhampton.
“Retirement plans do not cover everything”.
About 47 percent of Americans said they either could not afford an emergency expense of $400, or would cover it by selling something, or borrowing money. Florence Bank said you can keep track of your emergency savings through online banking, which you can access on your cell phone.