Report: Providence metro ranks poorly for savings potential

THE PROVIDENCE metro area ranked No. 35 among the largest metro areas in the nation for the length of time it would take for a median income household without any nonessential expenses to save for a six-month emergency fund. / PBN FILE PHOTO/CHRIS BERGENHEIM
THE PROVIDENCE metro area ranked No. 35 among the largest metro areas in the nation for the length of time it would take for a median income household without any nonessential expenses to save for a six-month emergency fund. / PBN FILE PHOTO/CHRIS BERGENHEIM

PROVIDENCE – The Providence-Warwick-Fall River metropolitan area ranked as the No. 35 best metro for savers in 2019 among the 50 largest metro areas in the nation, according to a report issued by BankRate.com Monday.

The report ranked metro areas by determining the length of time it would take for a median income household to save for a six-month emergency fund. The report determined the six-month savings figure for each area and an annual savings potential based on local economic factors.

The potential savings in the report were calculated based on a household foregoing all nonessential spending.

Earnings were based on the 2017 household median income for each area. The report then subtracted other costs provided by the U.S. Census Bureau, such as mortgage payments, property taxes, state and federal taxes, and other costs, such as groceries, health care and utilities.

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The report said that it would take roughly 28.8 months to reach the six-month emergency fund level, which was determined to be $22,251. The estimated potential yearly savings of a household in the metro area was $9,704.

The Memphis, Tenn., metro area ranked No. 1, with a calculated 11.6 months required to reach a six-month emergency fund. The required amount in the area was determined to be $15,028, while the annual potential savings was estimated to be $15,761.

The Providence metro was the second-highest ranked metro area in New England behind the Hartford-West Hartford-East Hartford, Conn., metro area, where it was determined to take 20.4 months to save a six-month emergency fund of $23,565, with a potential annual savings of $13,848.

The Boston metro ranked as the No. 7 worst metro among the largest 50 metros for saving an emergency fund. The report said that it would take a median household 86.1 weeks to save for a six-month fund.

The full report may be viewed online.