Almost 60 percent of participants polled in December 2025 say they have fewer emergency savings than the previous year. Twenty-one percent surveyed said they have more than the previous year, and 17% said they had none and continue to be zero now.
Bankrate’s Stephen Kates says Americans have battled inflation since 2020 but there is a silver lining with Trump economics-
“Right now, we have the lowest inflation adjusted prices we’ve seen in decades. So that’s a bright side for sure.” Kates said.
As President Trump gets a handle on grocery and gas prices, Kate’s says home and auto insurance has skyrocketed. “There moving up double-digit percentages over the last few years on an annual basis. So those are really cutting into people’s budgets. Groceries are more expensive too.
He says wages need to rise to compete with the rising costs, or people need to find additional work-rather than cutting back- because they need to pay their mortgages and their electricity bills- which continue to increase annually.
With so many people unable to save beyond daily expenses, he says it’s insulting to ignore people’s frustrations when it comes to affordability. “I see my bills go up; you can’t tell me it’s not real.” He said.
As the Trump administration works on lowering mortgage rates in the housing industry, lowering gas prices, reducing inflation lowering the cost of groceries and prescription drugs is at least one bright spot when it comes to the economy. “Simply the attempt to try to find ideas and solutions is encouraging for the average household.” Kates said. He says although lower gas prices help, housing and insurance pricing are still out of reach.
Kates says when people are deciding to either lower debt or to save for an emergency fund, rather than trying to tackle everything at once, he recommends focusing on the single most important financial priority. Go to Bankrate.com for more information on ways to save for an emergency fund.