Preparedness for Financial Emergencies: Evidence from the Survey of Consumer Finances

10 Pages Posted: 12 Mar 2013

See all articles by Vibha Bhargava

Vibha Bhargava

Department of Consumer Sciences

Jean M. Lown

Utah State University - Emma Eccles Jones College of Education and Human Services

Abstract

The 1998 and 2001 Survey of Consumer Finances were used to compare the emergency fund adequacy of households. A low percentage of households met the 2-month, 3-month, and 6-month income guidelines for the quick, intermediate, and comprehensive measures in both years. More than 50% of households did not meet any of the guidelines. There was no difference in likelihood of meeting the guidelines in 1998 and 2001. Results of the logistic regression indicated that age, education, income, marital status, race, homeownership, retired status, self-employment, savings horizon, spending behavior, and risk behavior were significant determinants of the likelihood of meeting the guidelines.

Keywords: emergency funds, financial preparedness of households, savings, Survey of Consumer Finances

Suggested Citation

Bhargava, Vibha and Lown, Jean M., Preparedness for Financial Emergencies: Evidence from the Survey of Consumer Finances. Journal of Financial Counseling and Planning, Vol. 17, No. 2, 2006, Available at SSRN: https://ssrn.com/abstract=2232126

Vibha Bhargava (Contact Author)

Department of Consumer Sciences ( email )

Blankenship Hall-2010
901 Woody Hayes Drive
Columbus, OH OH 43210
United States

Jean M. Lown

Utah State University - Emma Eccles Jones College of Education and Human Services ( email )

Logan, UT
United States

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