Texas ranked one of nations least prepared states for a recession

Many Americans are preparing for a possible economic recession shortly, with some experts warning a recession could still come by the end of 2023. Assurance IQ recently released a study in which they polled 3,200 U.S. adults on how they are preparing themselves financially for a possible recession.

Participants were asked to rate their preparedness on a scale of 1-5, with five being the most prepared. Texan's average answer was 2.5, making it the 4th least prepared state in the event of an economic recession.

Overall, roughly 2 in 5 Americans feel unprepared for a recession if one was to occur this year. Nearly a quarter of all participants (23%) say they would have no savings to fall back on if they lost their jobs due to a recession.

Here are some other key findings:

• Over 60% of Americans say they’re taking the threat of a recession seriously in 2023.
• 56% of Americans claim they began saving when the possibility of a recession first came to light last year. With a recession looming, 68% of Americans are cutting back on non-essential expenses, such as dining out, entertainment, and clothing items.
• Over a third of Americans (35%) will hold off on buying a house in 2023 in anticipation of a recession. 43% of millennials, in particular, are doing the same.
• When asking respondents how they’re planning for a recession, cutting discretionary spending, building an emergency fund, adding another revenue stream through a side hustle, and paying off credit card debt were the top responses.

While a 2023 recession is not a foregone conclusion, preparing for one is something most Americans should do. More information on the study and how to prepare can be found here.