Today's Date: February 4, 2023
INOTIV INVESTIGATION INITIATED by Former Louisiana Attorney General: Kahn Swick & Foti, LLC Investigates the Officers and Di   •   NEWAGE DEADLINE ALERT: Bragar Eagel & Squire, P.C. Reminds Investors that a Class Action Lawsuit Has Been Filed Against NewA   •   SILVERGATE DEADLINE ALERT: Bragar Eagel & Squire, P.C. Reminds Investors that a Class Action Lawsuit Has Been Filed Against   •   Boston Celtics and Sun Life close out 9th annual Fit to Win youth program with Celtics forward Justin Jackson at trampoline park   •   International Thriller "Nine" Set in Accra, Ghana Produced by Silver Lining Entertainment and Directed by Chris Attoh, Premieres   •   Greenberg Traurig's Chinh H. Pham on Get Konnected! List of Boston's 50 Most Influential Asian-American Pacific Islanders   •   NASA Awards Millions to Historically Black Colleges, Universities   •   C3 AI Commits to Net-Zero Greenhouse Gas Emissions by 2050   •   General Dynamics Elects Richard Clarke to Board of Directors   •   F45 DEADLINE ALERT: Bragar Eagel & Squire, P.C. Reminds Investors that a Class Action Lawsuit Has Been Filed Against F45 Tra   •   SHAREHOLDER ACTION ALERT: The Schall Law Firm Encourages Investors in Atlassian Corporation with Losses of $100,000 to Contact t   •   Joaquin Sabina in USA   •   NEOGENOMICS 72 HOUR DEADLINE ALERT: Former Louisiana Attorney General and Kahn Swick & Foti, LLC Remind Investors With Losse   •   Government of Canada to support clean air and local economic growth by powering federal operations in Alberta and Saskatchewan w   •   Health Equity Report Card Pilot Project to Help Close the Care Gap Highlighted on World Cancer Day   •   ST. THOMAS UNIVERSITY COLLEGE OF LAW NAMED THE BENJAMIN L. CRUMP COLLEGE OF LAW   •   U.S. FDA Approves Takeda’s TAKHZYRO® (lanadelumab-flyo) to Prevent Hereditary Angioedema (HAE) Attacks in Children 2 Y   •   Scottsdale Tesla Drivers Club and PS Academy Arizona Work Together on Tesla Cybertruck Build   •   Dentalis Animal Health appoints Advisory Board   •   F45 TRAINING 72 HOUR DEADLINE ALERT: Former Louisiana Attorney General and Kahn Swick & Foti, LLC Remind Investors With Loss
Bookmark and Share

Low-Income Families Have No Financial Safety Net

SAN FRANCISCO--A nationwide poll commissioned by EARN, the nation’s leading provider of matched savings accounts for low-income workers and co-founder of Bank on San Francisco, revealed that over one-third of low-income households are unprepared to cover basic financial needs, if there were no outside source of money.

“While these successes represent an important and monumental shift in the right direction, a more comprehensive package of policies is needed to effectively enable a broader range of financial opportunities for low-income consumers and increase access to financial services.”
Among households earning $35,000 or less annually, a staggering 36% reported having just enough to meet basic financial needs for one month if income is disrupted. In addition, only 14% and 8% of low-income participants indicated being prepared to cover basic financial needs for a period of two and three months respectively. This national poll reveals that American households overall are better prepared than the low-income segment to weather circumstance such as a job loss or catastrophic illness, with a majority (51%) of households nationwide reporting having enough savings to cover basic expenses for more than three months.

In 2006, EARN developed the Local Asset Poverty Index (LAPI) for California, the first data tool of its kind to measure asset poverty rates at the local level. Unlike income poverty data, which measures the amount of income needed over the course of a year to make ends meet, asset poverty measures the ability of households to cover its basic needs for a period of three months if income is disrupted. EARN’s data revealed that nearly 29% of Californians were living paycheck to paycheck with little to no savings to rely on in the event of a job loss, medical emergency or an unexpected expense.

Now, EARN’s nationwide data reveals that fully one-third of low-income households are asset poor, meaning that not only can they not cover expenses for three months should their income flow stop, but these households do not have the assets in reserve that are usually used by those in higher income groups to rebound as the economic recovery gains momentum. These findings, which point to long-term stabilization problems for low-income families, supports the necessity of a more comprehensive policy arsenal—at both the state and federal level—to help stabilize savings and increase low-income access to mainstream financial services.

“At a time when state leaders grapple with large budget deficits and propose to roll back funding to vital safety net programs, the Obama Administration and members of Congress have succeeded in passing health care reform, increasing protection to credit card consumers and extending unemployment benefits,” said EARN President and CEO Ben Mangan. “While these successes represent an important and monumental shift in the right direction, a more comprehensive package of policies is needed to effectively enable a broader range of financial opportunities for low-income consumers and increase access to financial services.”

Optimism Over Future Job Prospects

EARN’s national survey found hopeful signs regarding Americans’ thoughts about future job prospects. In general, Californians proved more optimistic than national survey participants, with minorities more confident in the future of American job creation than Caucasians.

64% of national survey participants and 83% of those polled in California believe that job prospects will improve somewhat or very much over the next year. African-Americans were more optimistic than other demographic groups, with 86% feeling things would improve on the job front over the next year compared with 60% of white and 72% Hispanic survey participants. Perhaps surprisingly, annual household income and education levels had little impact on national polling figures.

“The optimism we’re seeing around job growth prospects indicates a psychological momentum that is important for policy-makers to recognize and capitalize upon,” says Mangan. “It may also create an opening for job creation policies which are, in the long-term, supportive of sustainably creating jobs over the next year.”

Survey Research Methodology

These statistics are derived from findings of a telephone survey conducted among a national probability sample of 1,010 adults comprising 506 men and 504 women 18 years of age and older, living in private households in the continental United States. Interviewing for this CARAVAN® Survey was completed during the period April 15-18, 2010. EARN expects to continue conducting national surveys on a host of issues including asset building, saving rates among Americans and personal finance tools for low-income families.

About EARN

EARN is an award-winning California-based nonprofit that gives low-income workers the power to create economic prosperity for their families for generations to come. Since 2001, EARN has helped tens of thousands of low-wage families through innovative financial products including matched savings accounts, checking accounts for the unbanked, micro-loans, and money management coaching. EARN’s powerful combination of lasting assets and financial know-how enables families to build wealth and achieve life-changing goals such as saving for college, purchasing first homes, or starting small businesses. Through its policy and research arm, EARN evaluates its impact and reports on new data regularly, sharing lessons learned and best practices in order to transform the financial services landscape and to champion effective public policies. EARN’s ultimate vision is that millions of well-informed, low-income American families will achieve financial success through proven strategies, fair public policy, and their own hard work. Visit www.earn.org or follow us on http://twitter.com/EarnOrg.

 



Back to top
| Back to home page
Video

White House Live Stream
LIVE VIDEO EVERY SATURDAY
Breaking News
alsharpton Rev. Al Sharpton
9 to 11 am EST
jjackson Rev. Jesse Jackson
10 to noon CST


Video

LIVE BROADCASTS
Sounds Make the News ®
WAOK-Urban
Atlanta - WAOK-Urban
KPFA-Progressive
Berkley / San Francisco - KPFA-Progressive
WVON-Urban
Chicago - WVON-Urban
KJLH - Urban
Los Angeles - KJLH - Urban
WKDM-Mandarin Chinese
New York - WKDM-Mandarin Chinese
WADO-Spanish
New York - WADO-Spanish
WBAI - Progressive
New York - WBAI - Progressive
WOL-Urban
Washington - WOL-Urban

Listen to United Natiosns News