Shiloh
Editor, Senior Moderator
Source: https://www.cnbc.com/2021/08/18/one-third-of-americans-couldnt-cover-2000-before-the-pandemic.html
One-third of American families couldn’t cover a $2,000 emergency before the pandemic
Published Wed, Aug 18 20218:30 AM EDTUpdated Wed, Aug 18 202110:36 AM EDT
Kate Dore
Key Points
Roughly 27% of American families couldn’t cover an unexpected $2,000 expense within a month, and 33% were struggling to make ends meet in January 2020.
Since the Great Recession, certain groups — including women, Black and Hispanic Americans, and those with less education — have shown lower financial resilience.
Solutions to fill the gaps may include boosting income, reducing debt, expanding risk protection and increasing financial literacy.
One in 3 American families couldn’t handle a mid-sized financial emergency before the pandemic, according to a report from the Stanford Center on Longevity and the Global Financial Literacy Excellence Center.
Roughly 27% of American families couldn’t cover an unexpected $2,000 expense within a month, and 33% were struggling to make ends meet in January 2020, directly before the Covid-19 pandemic, the report shows.
The report looked at Americans’ financial resilience since the Great Recession, measured by someone’s ability to handle a $2,000 expense, total debt and emergency savings.
Although insecurity has been widespread, it’s more prevalent among women, Black and Hispanic Americans, individuals aged 30 years to 44 years old and those with less education, the analysis shows.
Those with low levels of financial resilience were slower to recover from the Great Recession than the general population, contributing to wealth gaps and economic inequality, according to the report.
“While college graduates experienced faster job and income growth, these vulnerable groups recovered more slowly,” said Jialu Liu Streeter, research scholar at the Stanford Center on Longevity.
Pandemic recovery
While the pandemic is still ongoing, there have already been signs of an unequal recovery among workers.
For example, a Stanford Center on Longevity survey from December 2020 found non-standard employees — part-time, on-call, temporary, self-employment and gig workers — were less likely to have job security, emergency savings, retirement plans and adequate insurance...
One-third of American families couldn’t cover a $2,000 emergency before the pandemic
Published Wed, Aug 18 20218:30 AM EDTUpdated Wed, Aug 18 202110:36 AM EDT
Kate Dore
Key Points
Roughly 27% of American families couldn’t cover an unexpected $2,000 expense within a month, and 33% were struggling to make ends meet in January 2020.
Since the Great Recession, certain groups — including women, Black and Hispanic Americans, and those with less education — have shown lower financial resilience.
Solutions to fill the gaps may include boosting income, reducing debt, expanding risk protection and increasing financial literacy.
One in 3 American families couldn’t handle a mid-sized financial emergency before the pandemic, according to a report from the Stanford Center on Longevity and the Global Financial Literacy Excellence Center.
Roughly 27% of American families couldn’t cover an unexpected $2,000 expense within a month, and 33% were struggling to make ends meet in January 2020, directly before the Covid-19 pandemic, the report shows.
The report looked at Americans’ financial resilience since the Great Recession, measured by someone’s ability to handle a $2,000 expense, total debt and emergency savings.
Although insecurity has been widespread, it’s more prevalent among women, Black and Hispanic Americans, individuals aged 30 years to 44 years old and those with less education, the analysis shows.
Those with low levels of financial resilience were slower to recover from the Great Recession than the general population, contributing to wealth gaps and economic inequality, according to the report.
“While college graduates experienced faster job and income growth, these vulnerable groups recovered more slowly,” said Jialu Liu Streeter, research scholar at the Stanford Center on Longevity.
Pandemic recovery
While the pandemic is still ongoing, there have already been signs of an unequal recovery among workers.
For example, a Stanford Center on Longevity survey from December 2020 found non-standard employees — part-time, on-call, temporary, self-employment and gig workers — were less likely to have job security, emergency savings, retirement plans and adequate insurance...