ORLANDO, Fla. – A new survey shows that Americans are saving more than they have in seven years but financial experts said it's not good enough.
Nancy Hecht of Certified Financial Planners in Altamonte Springs, said baby boomers “have done much better than the millennials as far as savings go,” but that too many people aren’t saving anything at all.
The findings released by BankRate.com found that “most Americans have emergency savings” following a survey that asked consumers, “How much have you stashed away?”
The survey found 38 percent of Baby Boomers and 23 percent of millennials have emergency savings for six months or more.
“Just looking at the headline, it’s very encouraging," Hecht told News 6. “But when you dig down a little tiny bit you see that the smaller percentage, one third, have six months or more in expenses saved, so that’s leaving 66 percent or more of the population that has less than six months of emergency savings to cover expenses.”
Cassandra Sneed is part of the Baby Boomer generation that is saving. She said she puts away $1,000 for her emergency fund and keeps it at that level.
“I put it in my regular savings account at my bank," Sneed said, “That way, I can transfer funds when I need it.”
Hecht said the idea isn’t to make money on the emergency fund, because it’s cash that is there when you need it.
“At a minimum, I would look at three months worth of income to have in a checking account, a savings account and a money market account that you do not touch,” Hecht said.
Andrea Woroch, a consumer savings expert, said you should “consider investing in a certificate of deposit as well.”
For more information, visit BankRate.com or FinancialGroup.com.