That reporting is some cnn/msn/forbes level of slop.
They cited the Fedβs 2022 (SCF) data on transactional account, then mixed in Motley Fool info despite the Fed surveying the exact same question, and then they gave some other supposed Fed number which is actually wrong.
The Fedβs SHED survey reports people feeling *atleast* βfinancially okayβ at 73% for 2022 (much higher than Motley Foolβs 40%)
The question about covering $400 emergency expense asks for cash and cash equivalents, where 63% respondees can do it. The cash equivalent is using credit card fully payable the next cycle.
In fact the report recognized those who responded not paying by cash/equivalents βstill likely had access to $400 cashβ. Therefore they supplemented the question with what is the size of emergency spending they can handle: 48% atleast $2000, and 68% atleast $500.
Having 3x months expense in savings is a choice. 54% can cover it from their βrainy say fundβ but a further 15% can βdraw on other savingsβ (69% total). Remember the median $8k savings account figure? Thereβs a further $26k in median CD accounts, and $150k in median bonds (*excluding* retirement accounts).
Besides the Fed, the CFPB also did a 2022 emergency savings and financial security survey. 39% have median emergency savings of $1000, and 37% have $25000 (mean values are $2k/97k).