In Los Angeles, 19% of households live in poverty, but nearly three times as many (52%) are financially vulnerable. These “liquid asset poor” households do not have enough savings to live above the poverty level for just three months if they lose a job, face a medical crisis or suffer another income disruption. Communities of color fare even worse: 64% of African-American households and 76% of Hispanic households are liquid asset poor.
Of households earning between $50,000 and $75,000 annually, 49% are liquid asset poor. These households live in a state of persistent financial insecurity, one emergency away from falling into debt or even losing a home.
The inability to bounce back from financial pitfalls not only hurts Los Angeles families, but also stifles the city’s long-term economic growth.
These findings are part of a new data analysis from Family Assets Count, a project of CFED and the Assets & Opportunity Initiative, in partnership with Citi Community Development and Koreatown Youth and Community Center. The analysis spotlights a range of challenges confronting all types of Los Angeles families:
Taking on these challenges will require focus and collaboration across policymakers, advocates, practitioners and philanthropists to strengthen programs, services and policies that improve family financial stability in Los Angeles. Ensuring pathways to earning decent wages and sustaining employment, saving for emergencies, investing for future goals and protecting assets is important for families and critical to sustainable economic growth.
Through cutting edge data, tools and resources Family Assets Count leverages the power of cities to improve financial stability for families and advances programs and policies that reduce barriers and encourage families to save and build assets. For more information and data visit FamilyAssetsCount.org
Click here for a complete list of stories covering Family Assets Count.