Could You Weather a Financial Crisis? Find Out Here.
February 23rd, 2015
Liquid Asset Poverty measures the amount of households without a basic personal safety net. These households do not have enough “liquid” savings (i.e., cash, retirement savings, checking account, etc.) needed for its members to get by for just three months if faced with an unexpected emergency that left them without a stable income. According to the 2015 Corporation for Enterprise Development (CFED) Assets & Opportunity Scorecard, 62 percent of Mississippi households do not have a basic personal safety net to weather emergencies, compared to only 44 percent of all U.S. households (See Chart).
The high rate of liquid asset poverty underscores the importance of having savings in the event of a job loss, medical emergency or financial crisis. Households with savings are better prepared to weather financial setbacks and save for future needs, such as a child’s college education or homeownership, as well as have long-term financial security.
Use the CFED Liquid Asset Poverty Calculatorto determine how much savings your household would need to weather a financial crisis.
Corporation for Enterprise Development. (2015). Assets and Opportunity Scorecard, 2015. Retrieved fromhttp://assetsandopportunity.org/scorecard/