Quarterly Survey of Household Emergency Expenses and Decisionmaking
Source: Morning Consult Economic Intelligence
Morning Consult surveys approximately 10,000 U.S. adults each quarter on their households’ capacity to absorb emergency expenses and related economic decisions. The first section of the survey replicates questions from the Dealing With Unexpected Expenses section of the Federal Reserve’s annual Survey of Household Economics and Decisionmaking, which poses hypothetical questions on how consumers would respond to an emergency expense. The second section of Morning Consult’s survey focuses on actual outcomes reported by consumers who experienced emergency expenses, allowing for comparison between theoretical and observed behaviors.
Key Takeaways
U.S. consumers grew less confident in their ability to cover emergency expenses in Q4 2024, compared with both the previous quarter and the same quarter a year ago, with 1 in 5 adults reporting they wouldn't be able to pay a hypothetical $400 unexpected cost.
The share of adults who said they'd pay for a hypothetical $400 expense with cash or equivalents reached its lowest point since tracking began (43%), whereas the share paying with at least some debt hit its highest level to date (37%). This shift toward debt may be driven in part by the additional strain on household budgets from pre-holiday spending, as consumers set aside more savings in Q4 for gift-buying and holiday travel that might otherwise be available to fund emergency expenses.
While consumers of all income levels have reported decreased ability to cover unexpected expenses purely with cash in Q4, shifts compared with the same period a year ago have varied. High income adults had an increase in expected ability to pay with cash compared with Q4 2023, whereas middle and lower earnings adults--both of which groups have also shown more persistent price sensitivity and financial strains throughout 2024--each had a year-on-year decline in the shares who said they'd cover a $400 cost without needing to rely at least partially on debt.
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Ability to Cover an Emergency Expense With Cash
Source: Morning Consult Economic Intelligence
Source of This Data
Methodology
The Morning Consult Quarterly Survey of Household Emergency Expenses and Decisionmaking relies on data collected through Morning Consult’s proprietary survey research capabilities. The interviews were conducted online in October 8- 13, 2024, and the data is weighted on age, gender, race, educational attainment, region, gender by age, race by educational attainment, health coverage, Medicare coverage, and SNAP benefit status. Results from the full survey have a quarterly sample size of approximately 10,000 U.S. adults and an unweighted margin of error of +/- 1 percentage point.
“Cash and cash equivalent” includes paying with cash, with money in a checking/savings account or putting the expense on a credit card and paying it in full at the next statement. “Noncash equivalent” includes putting the expense on a credit card and paying it off over time, using money from a bank loan or line of credit, borrowing from a friend or family member, selling something, or using a payday loan, deposit advance or overdraft.
About Morning Consult
Morning Consult is a global decision intelligence company changing how modern leaders make smarter, faster, better decisions. The company pairs its proprietary high-frequency data with applied artificial intelligence to better inform decisions on what people think and how they will act. Learn more at morningconsult.com.
Email [email protected] to speak with a member of the Morning Consult team.
Kayla Bruun is the lead economist at decision intelligence company Morning Consult, where she works on descriptive and predictive analysis that leverages Morning Consult’s proprietary high-frequency economic data. Prior to joining Morning Consult, Kayla was a key member of the corporate strategy team at telecommunications company SES, where she produced market intelligence and industry analysis of mobility markets.
Kayla also served as an economist at IHS Markit, where she covered global services industries, provided price forecasts, produced written analyses and served as a subject-matter expert on client-facing consulting projects. Kayla earned a bachelor’s degree in economics from Emory University and an MBA with a certificate in nonmarket strategy from Georgetown University’s McDonough School of Business. For speaking opportunities and booking requests, please email [email protected]
Sofia Baig is an economist at decision intelligence company Morning Consult, where she works on descriptive and predictive analysis that leverages Morning Consult’s proprietary high-frequency data. Previously, she worked for the Federal Reserve Board as a quantitative analyst, focusing on topics related to monetary policy and bank stress testing. She received a bachelor’s degree in economics from Pomona College and a master’s degree in mathematics and statistics from Georgetown University.
Follow her on Twitter @_SofiaBaig_For speaking opportunities and booking requests, please email [email protected]
