Federal Reserve officials remain sharply divided on interest rate cuts, casting doubt on the likelihood of a December rate cut. With inflation trying to creep back up and a weakening labor market, the Fed has some big decisions to make.

Those economic pressures are showing up in household finances. As families head into the holidays — a time when spending rises and financial stress peaks — many wish they had a stronger safety net. And according to Bankrate's annual emergency savings report, the timing couldn't be worse, as the survey found that 80% of Americans didn't grow their emergency savings at all this year.

Here's a look at several key insights from the survey.

Holiday Spending vs. Household Savings — Credit Cards Fill The Gap

While experts typically recommend keeping three to six months of expenses saved for emergencies, in reality, many people don't have nearly that much saved. In fact, according to the survey, 24% of Americans have no emergency savings at all, and among those who do have something set aside, most fall well short of the 3-6 month recommendation.

With the holiday season approaching, this lack of a financial buffer is particularly risky. Based on projections, households plan to increase holiday spending by 4%, with total spending expected to surpass $1 trillion for the first time. Meanwhile, 60% of Americans report feeling uncomfortable with their savings, and 76% say they cannot cover three months of expenses.

Given these trends, many households are likely to rely on credit cards to fill the gap. Buy-now-pay-later services are also surging, as stagnant wages struggle to keep up with inflation. Currently, one in three Americans has more credit card debt than emergency savings.

Another notable takeaway is that 37% of Americans dipped into their emergency fund, led by Millennials and their parents. The most common withdrawal was $1,000–$2,499, enough to wipe out a small emergency fund. Most of this money went to essentials — medical bills, rent, utilities, and groceries — underscoring that these withdrawals were necessary, not discretionary spending.

So what to make of all this?

For advisors, these findings highlight both a planning challenge and a relationship opportunity. Many clients are heading into the holidays feeling behind or even ashamed of their situation, and framing emergency savings as a long-term habit — not a pass/fail benchmark — can help them move forward.

Small, consistent actions matter more than chasing a perfect six-month target, especially for clients juggling high expenses or variable income. And because so many households are leaning on credit cards to fill the gap, integrating debt management with savings guidance can offer a clearer, less overwhelming path.

In a year when most Americans made no progress at all, helping clients build momentum — even in tiny steps — may be one of the most valuable gifts you can give.

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