The Role of Emergency Savings in Family Financial Security: Barriers to Saving and Policy Opportunities

Jan 07, 2016
  • Description

This brief is the third in a series of three that explore how financial shocks and emergency savings are related to families' financial well-being. Savings may help households cope with unexpected expenses and preserve wealth over the long run. Understanding the frequency and impact of events that might strain budgets, and the resources families have to cope with them, is crucial to building policies that promote financial health. This brief explores how Americans think about their savings; how policymakers might enable diverse families to better prepare for, handle, and recover from financial challenges; and related economic factors that should be considered to ensure that policies and programs respond to families' needs.