Although much prior research has studied factors associated with adequacy of emergency savings, very few have examined the adequacy of emergency savings for Millennials who are at an important stage of managing their financial risks and investing for their financial future. Existing research has shown a number of factors affect emergency fund adequacy. Findings related to factors that are significant in predicting American Millennials' emergency savings could provide important implications to stakeholders of Millennials’ financial well-being. Results of this study show that factors significantly affected older generations’ emergency savings adequacy can also predict Millennials’ emergency savings adequacy. Financial literacy, in particular, positively affect one’s adequacy in emergency savings. Unlike older generations, Millennial face more responsibility to save for retirement. Inadequate emergency fund savings could force one to incur more debt and/or suffer financial losses such as make suboptimal financial decisions by selling securities when the market is down.
