Economy

Millennial money: Don’t freak out about your emergency fund

SOUTH FLORIDA TIMES — Let’s be real: For millennials, having an emergency fund is way down on the financial worry list, behind student loan debt, medical bills or saving for a down payment.

Published

7 years ago

March 18, 2019

Oakland Post

By Amrita Jayakumar

Let’s be real: For millennials, having an emergency fund is way down on the financial worry list, behind student loan debt, medical bills or saving for a down payment. Some weeks, it can feel like you barely have enough money to get by, let alone put some away for a rainy day. But that cash stash can be crucial in preventing a debt spiral or keeping you afloat if you lose your job. Regardless of income, building your emergency fund doesn’t have to be intimidating.

START SMALL, BUILD A HABIT

First, pick an amount you can put away on a regular basis, no matter how small. Then, commit to it.

“It can be as little as $10 a week into a separate savings account,” says Lara Lamb, a certified financial planner at Abacus Wealth Partners in Los Angeles. Making a small contribution every week is less painful than shooting for an ideal final sum, she says. Automatically transferring the money to a separate account helps you succeed at saving. The saving habit – even if it’s small – is valuable for your finances in the long term, says Eric Gabor, a certified financial planner at Eagle Grove Advisors in Jersey City, New Jersey.

A family with at least $250 in savings is less likely to face financial turmoil such as a missed utility payment or eviction, according to a 2016 study by the Urban Institute, a Washington, D.C.-based think tank. Any amount above that – $400, $500 – improves your chances of navigating a setback.

Getting started is especially important for younger adults. An Urban Institute study released this year found 35.6 percent of adults ages 18-34 surveyed in December 2017 had experienced “financial insecurity” in the previous 12 months. That was the highest among the study’s three age groups of adults under 65. It defined financial insecurity as the “inability to come up with a small amount of money to buffer negative economic shocks or to pay his or her credit card or non-mortgage loan.”

Lamb suggests working toward one month’s fixed expenses, which includes rent, groceries, transportation and insurance. “Don’t worry about your eating-out money or shopping money,” she says. “If you are in an emergency or a transition, the whole idea is you would cut back on your spending.”

A savings account that pays a high interest rate is a smart place to keep your fund, both planners say, so it can grow.

MAKE USE OF WINDFALLS

An easy way to kick-start your fund is to use windfalls – part of a tax refund or even birthday money from relatives. Young professionals typically get tax refunds instead of owing money, Gabor says. The IRS allows you to direct deposit your refund in up to three accounts, so you can send part directly to your emergency fund.

If no windfall is imminent, check your checking account. Leave a small buffer so that you aren’t at risk of overdrawing and put anything else in the emergency fund to earn interest, Lamb says.

There’s no ideal amount to keep in your checking account. But both financial planners warn that having a lot of extra “cushion” in a checking account carries the temptation to spend it.

PLAN FOR NON-EMERGENCIES

If you’re building the habit of saving for emergencies, use that muscle to plan for other expenses.

Financial experts often use the terms “irregular expenses” and “unplanned expenses.” An unplanned expense is something you don’t foresee, such as an illness or car repair. Irregular expenses are predictable costs that come up during the year – think of car registration fees or holiday season spending.

Ideally, an emergency fund shouldn’t be used for irregular expenses, Lamb says. Instead, build a separate pool of money for them.

“Sit down and look at last year’s worth of spending and look at the things that popped up periodically”’ she says. “Think about the coming year and how that might change. Figure out the annual amount and divide by 12. That dollar amount is what you set aside every month in an irregular expense account.”

USE THE MONEY WHEN YOU NEED IT

Don’t be afraid to use your emergency fund when you need it. Knowing the difference between unplanned and irregular expenses can help you decide when to tap it.

If the alternative is maxing out your credit cards or taking a high-interest loan, it’s cheaper over the long term to use your cash, then immediately start rebuilding the fund.

This article originally appeared in the South Florida Times.

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2025 in Review: Seven Questions for Sen. Laura Richardson, Who Made Legislative History This Year

Before elected office, she served as a legislative staffer at the local, state, and federal levels and built a strong academic foundation, earning a political science degree from UCLA and an MBA from USC.

Published

2 days ago

December 29, 2025

Oakland Post

Sen. Laura Richardson (D-San Pedro). File photo.

By Edward Henderson, California Black Media

Elected in November 2024 to represent California’s 35th Senate District, Sen. Laura Richardson (D-San Pedro) brings decades of experience to her role.

Richardson says she remains deeply committed to empowering residents, strengthening neighborhoods, and supporting the local economy.

For example, SB 748, a bill she authored that Gov. Newsom signed into law this year, allows cities to use existing homelessness funds to clear unsafe RV encampments, and another measure aimed at expanding provider access for Medi-Cal patients.

California Black Media (CBM) spoke with Richardson about her successes and disappointments over the past year and her plans for 2026.

What stands out as your most important achievement this year?

Being number one in getting the most bills signed by a freshman senator. Our team and staff were able to effectively move legislation through committees in both the Senate and Assembly and gain the governor’s support.

How did your leadership contribute to improving the lives of Black Californians?

Securing overall agency support from the governor to begin the work of understanding and documenting descendants of slavery. The discussion around “40 acres and a mule” will be ongoing for many years, but moving forward with creating an agency—although not fully funded—was significant. They were baby steps, but they were steps.

What frustrated you the most this year?

The administration. Even though federal and state roles differ, California has its own values and priorities. When the federal government makes cuts that impact Californians, the state legislature feels the need to backfill to protect people. It was challenging and frustrating.

What inspired you the most this year?

SB 237, which I was a joint principal author on, inspired me. It dealt with fuel stability. Two refineries closed, and several others are barely hanging on. Even as we work toward zero emissions, we still need a certain amount of fuel. SB 237 opened up some of the fuel potential in Kern County, and there’s a pipeline from Kern County down to my district.

What is one lesson you learned this year that will inform your decision-making next year?

Engage the governor’s staff earlier. I’m going to push to involve the governor’s legislative staff sooner.

In one word, what is the biggest challenge Black Californians are facing right now?

Affordability. No matter how much you make, everything is more expensive—gas, groceries, insurance, mortgages. Costs keep rising while salaries don’t.

What is the goal you want to achieve most in 2026?

Creating a process for dealing with abandoned cemeteries.

The last piece—not specific to this year but building toward the future—is figuring out how people and businesses in the district and in California can participate in major events like the Olympics, FIFA, and the Super Bowl, all of which are taking place here.

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2025 in Review: Seven Questions for Sen. Lola Smallwood-Cuevas – an Advocate for Jobs and Justice

I’m proud of how we fought back against the Trump Administration’s attacks, especially on the budget, and strengthened protections for workers while fortifying the cultural power of Black Los Angeles. Workers’ rights remained central in my bill package because my background in organizing taught me a simple truth: when workers do well, communities do well.

Published

2 days ago

December 29, 2025

Oakland Post

Sen. Lola Smallwood-Cuevas (D-Los Angeles). File photo.

By Edward Henderson, California Black Media

Representing the 28^th Senate District, Sen. Lola Smallwood-Cuevas (D-Los Angeles) brings a lifelong commitment to working families.

After earning her communications degree from California State University Hayward (now known as CSU, East Bay), Smallwood-Cuevas began her career as a journalist telling the stories of working people—an experience that drew her into the labor movement.

Since being elected to the California State Senate, Smallwood-Cuevas has championed legislation that strengthens worker protections, expands access to justice, and uplifts historically marginalized communities.

California Black Media (CBM) spoke with Smallwood-Cuevas about her successes and disappointments this year, as well as her goals for 2026.

What stands out as your most important accomplishment this year?

I also moved forward with the creation of California’s first Black cultural district in South LA. Amid gentrification, this district will protect cultural assets and bring resources as Los Angeles prepares for the FIFA World Cup and Olympic Games.

How did your leadership contribute to improving the lives of Black Californians this year?

We must name the disparities Black communities face—higher homelessness, incarceration, and health incidents. During the budget fight, when the governor proposed zero dollars for homelessness, I pushed hard. We secured $500 million for homelessness response, reinstated $1 billion for supportive programs, and added another $500 million for affordable housing.

What frustrated you most this year?

Our people are under attack. Racial profiling is creeping back into federal policy. Crime is being weaponized to justify disproportionate incarceration—even though crime rates are at historic lows.

But what frustrated me most was how quickly diversity, equity, and inclusion were rolled back through federal orders and preemptive action by corporations and foundations.

What has been your greatest inspiration this year?

Our resilience. California does not stay down. The movement around Proposition 50 was incredibly inspiring. I saw unity across Black California.

What is one lesson you’ve learned this year that will guide your decision-making next year?

Black California is resilient and brilliant. We are stronger than our opposition. And the lesson echoes Dr. King: “Organize, baby, organize.” We must build coalitions across local, county, and state levels.

In one word, what is the biggest challenge facing Black Californians?

Visibility. Visibility is power. We must be present—in rooms, on boards, in media, in headlines. We cannot retreat from Black identity.

What is the goal you most hope to achieve in 2026?

Economic stability. When California enters a recession, Black communities enter a depression. My goal is to advance policies that create real economic opportunity through safety-net protections, contract access, and targeted local hiring for quality jobs. crisis.

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Families Across the U.S. Are Facing an ‘Affordability Crisis,’ Says United Way Bay Area

United Way’s Real Cost Measure data reveals that 27% of Bay Area households – more than 1 in 4 families – cannot afford essentials such as food, housing, childcare, transportation, and healthcare. A family of four needs $136,872 annually to cover these basic necessities, while two adults working full time at minimum wage earn only $69,326.

Published

1 week ago

December 20, 2025

Oakland Post

Affordable housing is the greatest concern for consumers, it’s followed by the cost of groceries. Courtesy photo.

By Post Staff

A national poll released this week by Marist shows that 61% of Americans say the economy is not working well for them, while 70% report that their local area is not affordable. This marks the highest share of respondents expressing concern since the question was first asked in 2011.

According to United Way Bay Area (UWBA), the data underscores a growing reality in the region: more than 600,000 Bay Area households are working hard yet still cannot afford their basic needs.

Nationally, the Marist Poll found that rising prices are the top economic concern for 45% of Americans, followed by housing costs at 18%. In the Bay Area, however, that equation is reversed. Housing costs are the dominant driver of the affordability crisis.

“The national numbers confirm what we’re seeing every day through our 211 helpline and in communities across the region,” said Keisha Browder, CEO of United Way Bay Area. “People are working hard, but their paychecks simply aren’t keeping pace with the cost of living. This isn’t about individual failure; it’s about policy choices that leave too many of our neighbors one missed paycheck away from crisis.”

The Bay Area’s affordability crisis is particularly defined by extreme housing costs:

Housing remains the No. 1 reason residents call UWBA’s 211 helpline, accounting for 49% of calls this year.
Nearly 4 in 10 Bay Area households (35%) spend at least 30% of their income on housing, a level widely considered financially dangerous.
Forty percent of households with children under age 6 fall below the Real Cost Measure.
The impact is disproportionate: 49% of Latino households and 41% of Black households struggle to meet basic needs, compared to 15% of white households.

At the national level, the issue of affordability has also become a political flashpoint. In late 2025, President Donald Trump has increasingly referred to “affordability” as a “Democrat hoax” or “con job.” While he previously described himself as the “affordability president,” his recent messaging frames the term as a political tactic used by Democrats to assign blame for high prices.

The president has defended his administration by pointing to predecessors and asserting that prices are declining. However, many Americans remain unconvinced. The Marist Poll shows that 57% of respondents disapprove of Trump’s handling of the economy, while just 36% approve – his lowest approval rating on the issue across both terms in office.