Tuesday, June 19, 2012

How Big a Rainy Day Fund?

When families are asked how much money they need to set aside for emergencies, the median amount they report is $5,000. But the figure rises with income from a low of $2,000 for households with the lowest incomes to a high of $30,000 for households in the top 10 percent of household income. As a percentage, however, households believe they need pretty much the same amount--10.8 percent of income socked away for a rainy day.

Source: Federal Reserve Board, Federal Reserve Bulletin, Changes in U.S. Family Finances from 2007 to 2010: Evidence from the Survey of Consumer Finances

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