US Emergency Savings Drain as Transportation Costs Spike

As transportation costs surge, aggravated by the Iran war, Americans are increasingly tapping emergency savings to cover day-to-day necessities.

Data from tens of thousands of employee Emergency Savings Accounts from provider SecureSave shows that at the end of March, nearly 12% of all withdrawals were for transportation, a 35% increase over last year.

"I did not have enough money for gas. I arrived late. It was humiliating," one SecureSave user reported.

SecureSave co-founder and CEO Devin Miller told USA TODAY households are in a "precarious" position, with many living paycheck to paycheck and savings rates near historic lows.

Karim Marshall, director of climate and energy policy at the Consumer Federation of America, said the Iran war is a direct driver, but it's just the latest chapter in a years-long cost-of-living crisis.

Emergency savings accounts, offered by employers, allow automatic payroll deposits. Employees use them for real needs, from car repairs to medical bills. Companies including Delta Airlines, AutoNation, and The Fresh Market use these programs.

Miller notes a compounding effect: car troubles cause missed shifts, reducing income, further straining budgets. The rising cost of vehicle parts, due to global supply chain issues, adds pressure.

"Most people don't have a lot of excess money in their accounts, so they can't absorb additional shock," Marshall warned.