34% of Gen Z Is Taking a Major Money Risk
A major financial reality of adulthood is that a costly emergency (from job loss to an unexpected medical bill) could come at any time. And make no mistake, you’ll be expected to pay for it. However, that’s easier said than done for the group of young adults currently aged 18 to 28: Generation Z.
According to the 2026 Bankrate Emergency Savings Report, Gen Z is dangerously unprepared for financial calamity. In fact, 34% of those polled had no emergency savings whatsoever. Meanwhile, another 37% had some savings, but far less than three months’ worth of expenses. Only 28% of those members of Gen Z polled had enough savings to last between three and six months’ worth of expenses should their income abruptly stop.
Check Out: 3 Ways the 'Financial Nihilism' Mindset Is Costing Gen Z Over $1,200 a Year
Explore Next: Start Growing Your Net Worth With Smarter Tracking
If you’re a member of Gen Z and have yet to cultivate a healthy emergency fund, don’t panic. There are a number of pathways to a viable financial safety net.
The 90-Day Rule
To create an emergency savings fund, it helps to have a savings goal. The most widely-accepted recommended savings figure is this: three to six months’ worth of your normal expenses. At minimum, having enough emergency cash to get you through 90 days without any income is essential. Any more than that, though, may be asking a lot for a generation that’s just getting started in the financial world.
“Traditionally, the advice has been to save six months of living expenses,” Shavan Roman, chief money strategist at Heal Plan Invest, told MoneyLion. “Some financial experts even recommend a full year. But for Gen Z, especially if you're just starting your career and navigating independent life for the first time, that goal can feel overwhelming."
“Instead, I recommend aiming for three months of living expenses to start,” she added. Roman suggested not just calculating and projecting your fixed bills, but including the things that make life enjoyable, too.
“If you were to lose your job or experience an unexpected interruption in income, you don't just want to survive,” she added. “You want to give yourself the space to breathe, think clearly and figure out your next move without feeling miserable. That means factoring in your essentials like rent, utilities, groceries, transportation and insurance, but also including the things that help you feel like yourself. Maybe that's going to the movies, attending a concert every now and then, grabbing dinner with friends or treating yourself to a staycation."
Ultimately, when it comes to an emergency fund, Roman made clear that it should support not just your bills, but also your well-being.
Something Is Better Than Nothing
Echo Wang, founder of the bookkeeping firm EpicBooks, suggested to MoneyLion that while three to six months’ worth of savings should be the goal, ultimately some savings is better than none at all.
“If your job is steady and you have some kind of family support, between three and six months should suffice,” she said. “However, if you're self-employed, freelance or in a field where your income isn't guaranteed, shoot for six to 12 months. Decide how much uncertainty you're willing to live with. But do not be obsessed with finding the ‘perfect’ figure before starting out on your saving journey. [...] The majority of Gen Z members work on a freelance basis or even have side hustles and unpredictable careers. I'd rather see young people saving some money each month than focusing on achieving a certain figure."
The Bottom Line
Given that a crisis like unemployment is relatively fleeting, having enough savings to cover three to six months of time remains the emergency savings standard. Calculate how much you spend in an average month on rent, bills and casual expenses, and multiply accordingly to create a savings goal.
That said, remember that some savings is better than nothing at all – especially if you’re a freelancer, or have a low or irregular income. At the very least, save what you can afford, even if it’s less than three months. Having any kind of savings safety net is better than no safety net at all.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion: