The average American family in 2025 should have at least $35,000 in emergency savings, according to a new report from Investopedia. And the figure keeps rising.
That tab represents six months of emergency expenses for the typical American household, and it totals about two-fifths of that household’s annual income.
Many financial experts recommend that families should amass enough emergency savings to sustain them for three to six months, if not longer. The emergency fund is meant to protect you against a job loss, health crisis, car breakdown or major household repair. Emergency savings become especially important during a recession, a scenario Americans could be facing in the months to come.
Last year, Investopedia set out to put a price on six months of emergency expenses, including housing, medical care, travel and food. In 2024, the total came to just over $33,000.
In a 2025 update, published in May, Investopedia ran the numbers again. This time, they added up to $35,218.