Patterns of adequate household emergency fund holdings: A comparison of households in 1983 and 1986

Y. Regina Chang, Sandra J. Huston

Research output: Contribution to journalArticlepeer-review

17 Scopus citations

Abstract

The 1983 and 1986 Surveys of Consumer Finance were used to analyze patterns of meeting a guideline of holding enough liquid assets to cover three months of income (emergency fund adequacy). In both years, only 32% of households met the guideline. Only 21% of households met the guideline in both years. Logistic regression analyses show a consistent pattern. The probability of having adequate emergency funds increased with education, home equity, and age and decreased with household size. Households with a Black head had significantly lower probabilities of having adequate emergency fund holdings than similar households headed by a White.

Original languageEnglish
Pages (from-to)119-128
Number of pages10
JournalJournal of Financial Counseling and Planning
Volume6
StatePublished - 1995

Keywords

  • Emergency funds
  • Financial ratios
  • Liquidity
  • Survey of Consumer Finance

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