Most Americans Don't Have a Plan to Weather a Financial Storm

Be prepared

Motto: Girl Scouts and Boy Scouts

QUESTIONS ARE THE ANSWERS

Do you consider yourself financially literate?

What about your children and students?

Do you have a rainy day fund? Do they have a savings account? Do they have a college savings account? Do you or they contribute to it regularly?

What about a plan to weather a financial storm?

Here is why I ask. An Associated Press-NORC Center for Public Affairs Research survey reported on by Investopedia reveals almost seventy percent of Americans are unable to come up with $1,000 to address an emergency.

This is consistent with a 2014 survey commissioned by Bankrate that found over 60 percent of Americans may not have enough in savings to cover an unexpected $500 car repair or $1,000 medical emergency.

The implications are profound.

Consider this, if you have been working 3 years, it means either you have not been able to determine how to save one dollar a day or emergency preparedness is not a priority for you.

Ask yourself these questions.

1. Are there people in circumstances similar to me who have figured out how to make a habit of saving?
2. How do they do it? How do they save...repeatedly? Which of their strategies can I emulate? Which of their strategies can I improve upon?

I DON'T NEED AN EMERGENCY FUND. HERE'S WHY

I don't need an emergency fund. I want one.

Why? Lots of reasons. Here are three.

1. Just like the Girl and Boy Scouts, I thrive on being prepared.
2. Independence. An emergency fund provides me cushion to say no to things I have little interest in doing.
3. Sleep. I rest better knowing George Washington and Ben Franklin have my back.

HABITS. A REAL KEY TO CHANGE

If you want to make a change in your financial habits, find people and strategies you can emulate, adapt, and improve on. Here are a few additional steps you can take today to begin to be better prepared to weather financial storms of any kind.

1. Do what the Girl and Boys Scouts do. Start with a motto, promise, and goal to slowly, steadily, and systematically increase your financial preparedness, health and wealth.
2. Sign up for an automatic savings or investing program. They work. They protect you from you. They help reduce the risk of poor spending choices. They systematically and habitually increase your financial preparedness and wealth. You can start with small dollar amounts. DO NOT minimize the power of small steps. Small steps taken consistently are how you make big dreams and goals come true!
3. Volunteer to teach financial education, especially to young children. By educating and empowering young children to develop great money habits inclduing getting in the habit of saving money you may find yourself doing the same.
4. Check out FEMA's (Federal Emergency Management Agency) Disaster Declaration web page. It may provide you the inspiration to get started. It will remind you emergencies large and small occur regularly. They may be storms, floods, fires, earthquakes, car repairs, root canals, broken bones, etc.
5. Stop playing the lottery. How much do Americans prioritize and love playing the lottery? We spend more on the lottery than music, movies, books, video games and sports teams combined. Instead follow Warren Buffett and Sammy Rabbit's advice. Warren advises, 'Don't save what is left after spending; spend what is left after saving.' Sammy advises, 'Make saving a habit. Make it automatic!'
6. Start a reading program on personal finance.

LET'S COLLABORATE!

We're kicking off Sammy's new Dream Big campaign. 

The objectives:

• Start conversation on big dreams and teaching kids great money habits early, especially around college
• Provide parents and teachers strategic resources to faciliate above
• Highlight work of collaborators

Let's collaborate and have massive impact! How can we earn your support and highlight your work?

Thank you! Make it a Sammyriffic day!

'FREE' RESOURCES

We invite you to:

1. Review, use, and share Sammy Rabbit's Coloring Book titled 'Saving is a Great Habit!' You can download the strategic resource for FREE.
2. Check out Sammy's Dream Big Financial Literacy Showroom. All welcome!

RECENT SAMMY COLUMNS

Purposeful Coloring Makes It Easy to Teach Kids Finance

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RELATED READING

Investopedia | Most Americans Aren't Ready for a Financial Emergency

Bankrate | Survey: How Americans Contend with Unexpected Expenses

Atlantic | The Secret Shame of Middle Class Americans

America Saves | Save Automatically

CNN | How Much Do Americans Love Playing the Lottery

FEMA | Disaster Declarations

BOOKS

Finance is Personal | Kim Stephenson and Ann Hutchins

The Automatic Millionaire | David Bach

It Pays to Talk | Carrie Schwab

The Millionaire Next Door | Thomas Stanley and William Danko

Ordinary People, Extraordinary Wealth | Ric Edelman

Rich Habits - The Daily Success Habits of Wealthy Individuals | Thomas Corley

RESEARCH AND STATISTICS ON FINANCIAL EDUCATION

Financial Literacy, Statistics, Data and Results | National Financial Educators Council

Research | Global Financial Literacy Excellence Center

National State of Financial & Economic Education | Council on Economic Education