Brief Are Families Prepared for Financial Emergencies?
Caroline Ratcliffe, Katie Vinopal
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Data from the 2007 Survey of Consumer Finances show a disturbing reality. Even prior to the current recession, many families did not have enough assets to see them through a modest spell of unemployment or another financial emergency. In 2007, nearly one in three U.S. families were liquid asset poor. Low-income, young, and nonemployed families are more vulnerable to economic emergencies. For example, two-thirds (68 percent) of bottom income quintile families and 47 percent of second income quintile families are liquid asset poor, while such shortfalls affect only 1 percent of top income quintile families.
Research Areas Economic mobility and inequality Families Social safety net Taxes and budgets
Tags Poverty Low-Income Home Energy Assistance Program (LIHEAP) Economic well-being Individual taxes Income and wealth distribution Opportunity and ownership
Policy Centers Center on Labor, Human Services, and Population