Chang, Y. R. & Huston S. J.
(1995). Patterns of adequate household emergency fund
holdings: A comparison of households in 1983 and 1986, Financial Counseling
and Planning, 6, 119-128.
Patterns of Adequate Household Emergency Fund
Holdings: A Comparison of Households in 1983 and 1986
Y. Regina Chang (1) and Sandra J. Huston (2)
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.
Key Words: emergency funds,
liquidity, financial ratios, Survey of Consumer Finance
1. Y. Regina Chang, Assistant
Professor, Department of Consumer and Family Economics, University of
Missouri-Columbia, 239 Stanley Hall, Columbia, MO 65211. Phone: (573) 882-9343.
2. Sandra J. Huston, Ph.D. Student,
Consumer and Family Economics, University of Missouri-Columbia, 239 Stanley
Hall, Columbia, MO 65211. Phone: (314) 882-1465. E-mail: firstname.lastname@example.org.