Evidence summary

U.S. Financial Resilience & Emergency Expenses

The latest Federal Reserve SHED helps explain why demand for small-dollar credit exists: many households can handle a modest emergency, but a substantial minority cannot do so from cash or cash-equivalent resources.

Key finding: In the 2025 SHED, 63% of adults said they would cover a hypothetical $400 emergency expense using cash or its equivalent. That share was unchanged from the prior several years and below the 2021 high.

What the survey measures

The Federal Reserve has conducted the Survey of Household Economics and Decisionmaking since 2013. The 2025 survey, fielded in October 2025, covers financial well-being, employment, expenses, banking and credit, housing, education and retirement.

Why it matters for app-based borrowing

Emergency liquidity is one of the central contexts for cash advances, payday loans and other small-dollar products. The SHED does not measure “loan app demand” directly, but it provides a high-quality baseline for understanding how many adults have liquid resources available when an unexpected bill arrives.

What 63% does—and does not—mean

The measure counts cash, savings or a credit card that would be paid off at the next statement as “cash or its equivalent.” It does not mean the remaining 37% would necessarily use a high-cost loan. People may borrow from family, carry a credit-card balance, sell something, delay a payment or use other methods.

Evidence limitations

This is a hypothetical $400-expense question, not observation of an actual emergency. Responses describe intended behavior. Product-specific decisions still depend on credit access, timing, income, local law and available alternatives.

Where this connects

Use this evidence alongside the before-you-borrow guide, affordability check, cash advance app guide and borrowing-decision evidence summary.

Primary sources

Strong evidence · National survey

Economic Well-Being of U.S. Households in 2025

Federal Reserve Board · 2026

Nearly 13,000 U.S. adults surveyed in October 2025; broad measures of financial resilience, credit access, savings and emergency expenses.

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How to use this page: This is a structured evidence summary, not a substitute for the original source. Read the source when precise methodology, definitions, tables, legal interpretation or current regulatory status matters.