Brief Can Savings Help Overcome Income Instability?
Gregory B. Mills, Joe Amick
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Savings can help low-income households cope with income Instability and unexpected expenses, according to new evidence presented here. For households with nonelderly heads in the lowest income quintile, modest holdings of liquid assets (amounts up to $1,999) can significantly reduce the probability of hardships with health care, housing payments, food security, utility and phone bills, and basic consumption. Programs to promote saving can help low-income households protect themselves from economic shocks, as income variability, in addition to low income, increases risk of such hardships.
Research Areas Wealth and financial well-being Families Social safety net
Tags Low-Income Home Energy Assistance Program (LIHEAP) Asset and debts Economic well-being Families with low incomes Financial stability Family savings