When Amanda DiGrazia, 37, put her two young children in private day care, she and her husband had to dip into savings to pay $49,000 for a year at one point.

As their kids have gotten older, those expenses have decreased, the Seaford resident said. But new bills come along, including expenses to lease and buy out a lease on cars for both her and her husband.

Clothes also have gotten more expensive, and so has shopping for Christmas and birthdays.

"It seems like anytime that we're saving money somewhere, there's someplace else that it needs to go to," said DiGrazia, who helps her husband run a business.

DiGrazia is not the only one feeling the squeeze.

As the cost of living continues to rise, more Long Islanders — along with the state at large — are struggling to cover basic expenses, according to new data from United for ALICE, an economic research arm of the nonprofit United Way. That also means fewer families have extra money to save at the end of each month for financial emergencies, like a car repair or medical expenses, experts said. According to a March survey from WalletHub, at least 1 in 5 Americans have no emergency savings account.

“The personal saving rate, which is the percentage of money that you’re saving relative to your income, has been declining for 20 to 30 years,” said Steve Kent, chief economist of the Long Island Association’s Research Institute, referencing data from the Federal Reserve Bank of St. Louis.

Harder to save for rainy days

On Long Island especially, it’s become more difficult for households to cover basic expenses, making it harder to save for emergencies, said Theresa Regnante, president and CEO of United Way of Long Island.

People know it’s important to save, but at the end of the day, “the decisions are already made for most families. There is not an opportunity to put back money for a rainy day fund,” she said.

Twenty-seven percent of households in Nassau County were above the federal poverty line but still struggled to pay their bills in 2023, according to a new report from United Way research arm United for ALICE.

ALICE stands for Asset Limited, Income Constrained, Employed, and represents families above the federal poverty level who still cannot make ends meet.

Another 6% of households in Nassau were below the federal poverty line in 2023, according to the report.

Also in 2023, 33% of households in Suffolk were above the federal poverty line but still struggled to pay their bills, and 7% were below the federal poverty line

ALICE research in New York is sponsored by the nonprofit United Way of New York and the Albany-based Business Council of New York State Inc.

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In Nassau County, to cover basic expenses in 2023, a household with two adults and two children would need at least $109,452, according to ALICE data. If those two children are in child care, that number rises to $133,380. A single adult would need to make at least $45,672.

In Suffolk County in 2023, a family of four with two children would need to earn at least $110,448 and, if the children are in child care, $141,456, according to ALICE. A single adult would need at least $46,944.

The median household income is $141,568 in Nassau and $124,045 in Suffolk, according to United for ALICE. The nonprofit noted in its report that “certain groups are disproportionately represented due to systemic racism, ageism, gender discrimination, and geographic barriers that limit many families’ access to resources and opportunities for financial stability.”

On Long Island, that includes Black, Hispanic and Indigenous households, as well as homes headed by a single parent, according to United for ALICE.

“We obviously live in a community where there’s a premium to live here,” Regnante said, citing high taxes, rents and housing prices among the factors that make it difficult to afford Long Island.

“More people who are gainfully employed, who are working at what we would call a livable wage, are really struggling,” she said.

Between 2010 and 2023, the total number of households in New York increased 8% and the number of households facing financial instability increased by 31%, according to the ALICE report.

Savings rate trending downward

In April, the most recent month with data available, the personal savings rate in the United States was 4.9%, according to the Federal Reserve Bank of St. Louis, citing data from the U.S. Bureau of Economic Analysis. The savings rate has been trending downward since a peak of 17.3% in 1975, except for a sharp spike in 2020 during lockdown, when people could not go out and spend and many received government checks.

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Financial experts recommend that Americans save enough to cover between three and six months of expenses. Kent said this has become more difficult in the face of factors including inflation and more emphasis placed on experience-based spending, like concerts and dining out.

The average American family in 2025 should have $35,218 socked away to cover six months of expenses, according to an Investopedia analysis. That's far from reality for most, though, as that recommendation stands at around four times the $8,000 median in American savings accounts in 2022, equivalent to around $8,787 in 2025.

Post-pandemic, the country has faced some of the highest levels of inflation since 1981, with inflation rates hitting 7% in 2021 and 6.5% in 2022, according to Investopedia. The rate of increase has dropped since then, hitting 2.9% in 2024, but prices have not.

The Consumer Price Index rose 0.1% in May, according to the latest data from the Bureau of Labor Statistics. Over the previous year, the index measuring the average change in prices for goods and services increased 2.4%, the report said.

Kings Park resident Alfred Doyle, 73, said he's felt the impact of inflation lately as it's become more difficult to sock away extra money each month, although he still feels good about his ability to save.

“I’d say it’s a little harder,” he said, especially “with the way prices are going up.”

Inflation, Kent said, “does eat away at people’s income so whatever you were making, your expenses have gone up over the past few years, so you have less to save.”

Another reason for the declining savings rate is the growing number of older Americans drawing on their savings in retirement, Kent said.

Additionally, consumers are increasingly spending money on experiences like occasions and trips, and some people, he said, are also spending more than their income through credit cards.

Total household debt in the United States — a number that includes credit card debt, auto loans and student loans — increased by $167 billion to reach $18.2 trillion in the first quarter of 2025, according to the Federal Reserve Bank of New York.

Credit card and auto loan balances both dropped from the previous quarter for the second time since 2011, said the New York Fed, while student loan balances grew, with a large uptick in delinquencies.

Mortgage balances and home equity line of credit balances both rose as well from the previous quarter, according to the New York Fed.

Nonprofits a safety net for some

Many local nonprofits, like United Way, offer safety net programs to help out Long Islanders in case of emergency.

United Way of Long Island runs a program called The Compassion Fund meant to help bridge financial gaps, such as fixing a car or covering medications. The nonprofit also offers a nonemergency 211 line for households at or below ALICE thresholds to help with financial emergencies.

The Health and Welfare Council of Long Island also offers financial resources by distributing federal funds to community organizations through the Emergency Food and Shelter Program.

The South Huntington-based nonprofit, which has been around since 1947, has seen a decrease in allotments even as needs for issues like food insecurity or health care assistance have increased, said president and CEO Vanessa Baird-Streeter.

That need for financial aid has been worsened by federal layoffs, she said, adding the organization has not yet received its federal funding for 2025.

“Usually you need to have three to six months of emergency savings, but I think that’s exacerbated on Long Island because of the high cost of living,” she said. HWCLI has offered financial coaching workshops in the past, but does not provide the service on a regular basis.

Millie Nieves, branch manager at M&T Bank in Riverhead, which is among several Long Island banks that offer financial education.

The general rule of thumb is to try to put at least 20% of monthly income toward saving and debts, said Millie Nieves, branch manager at M&T Bank in Riverhead, which is among several Long Island banks that offer financial education.

Ideally, money could be deposited into a separate savings account automatically, or a certificate of deposit, she said.

It has become harder for Long Islanders to save, she acknowledged, due to a rising cost of living. But that’s another reason to try to build wealth rather than spending it.

“Start small and pay yourself first,” she said. “Make it a habit to save.”

For someone living paycheck to paycheck, “definitely look to your current employer for options or benefits that they do have to help save money, such as, can they match your 401(k)?” she said. “Is your company helping with HSA contributions?”

Plus, there’s a lot of online resources, including a financial education center at M&T’s website, Nieves pointed out. The bank also regularly hosts financial literacy sessions for community members.

Young people tend to have fewer funds

Younger people are less likely to have financial safety nets. The median emergency fund for Gen Z, those born between 1997 and 2012, is $200, according to GOBankingRates. The personal finance site attributes this to most still attending high school or college, or earning lower salaries as workers early in their careers.

Millennials, born between 1981 and 1996, are not much better off, with a median emergency fund balance of $500, according to GOBankingRates. Sixty percent don't know how they'd cover an unexpected bill, the site says, with financial pressures from student loan repayments, high rent and rising costs.

Gen X, born between 1965 and 1980, have a median $868 in emergency savings and Baby Boomers, born between 1946 and 1964, have a median $1,000 in emergency savings.

New York Institute of Technology in Old Westbury established a fund to help students stay in school despite unexpected expenses, such as car repairs, when the pandemic hit in 2020.

The program was a direct response to students reaching out when the state went on lockdown because they did not have the money to get home, said Tiffani Hinds, associate provost for student engagement and development.

Full- and part-time students can apply for up to $500 in emergency aid to bridge financial gaps, she said. More than 700 reached out for help during the pandemic, though the number has significantly dropped since then — only 10 students attending the Long Island campus requested funds this year, Hinds said.

“We’re educating our students to go out into the world and to change it in a better way,” she said, noting it’s unlikely that many college students have emergency funds to fall back on.

“A lot of our students are going through life while they’re with us and so for us to be able to assist them through their personal emergencies, through their catastrophes, in some small way, is great for their success,” Hinds said.

Saving not impossible

For Dylan Pacer, 35, an analyst for Northwell, as difficult as it may be, building up savings is not impossible. He's been able to save enough, although it's been "slightly harder" because of inflation and expensive day care bills.

Since the outbreak of the pandemic, the Lake Ronkonkoma resident has embraced healthier personal finance habits, which has made it much easier to put money away. He's aware of price increases, but it hasn't impacted him as much because he shops sales and usually buys store brand products.

His family is also higher income, he acknowledged, and has just one child in the house.

An increasing cost of living has been "driving people off of Long Island," he said. "I'm in a fortunate position; I can afford it ... But I understand" that, for a "younger person trying to start a life here ... it's very difficult."

Oscar Garcia, 33, of Miller Place, said it's actually been easier to save money lately than it has been in the past.

“We budget more,” he said. “We also have better jobs.”

At the end of the day, he’s focused on being mindful about where he spends his money, and that has been enough.

Long Island's soaring home prices

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