The Shocking Truth About Iowans’ Emergency Savings in 2025

How do you save for a rainy day? How about your fellow Iowan?

If you have credit cards hanging around for said rainy day, you're not alone.

A 2025 survey from Credit One Bank reveals that despite a strong preference for cash during emergencies, most Americans, including Iowans, are leaning on credit cards to cover unexpected expenses.

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While it's good to at least have some way to pay for emergencies, credit cards can be an extremely expensive way to do so.

What The Study Shows Us About Savings

Just over half of the respondents (51%) would reach for a credit card to handle a $500 emergency. Only 49% would use cash.

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Nearly two-thirds of people nationwide have less than six months of savings, leaving many Iowans similarly exposed.

Younger generations feel the pinch more acutely. In Iowa, millennials and Gen Z are more likely than older adults to rely on credit during crises.

Credit One found that 60% of those under 35 would swipe first, even if that means going over their credit limit.

Why This Matters in Iowa

Many Iowans grow up with solid budgeting habits.

Turning to cash first is the ideal mindset. Still, even locally, emergencies like unexpected car repairs or medical bills can quickly drain savings.

When that happens, relying on credit becomes a common fallback, especially among younger residents and those without a backup fund.

Meanwhile, rural Iowans often depend on cash due to limited access to banks or online financial services.

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That said, many families are one flat tire away from needing credit to cover emergency expenses.

Most people say they prefer cash (60%) or debit cards, but only a quarter have a dedicated emergency credit card.

What's your method for emergencies?