Two in five Americans can’t cover a $400 emergency expense, Fed finds
According to the Fed’s latest household economic health survey, more than a quarter of American adults would need to borrow or sell property to meet an unforeseen expense of $ 400. And 12% could not cope at all.
Despite the booming health of the US economy , a portion of Americans continue to live in difficult financial conditions. According to the Federal Reserve’s latest household economic health survey , four in 10 American adults could not meet an unexpected $ 400 bill. Neither with cash, nor with their savings, nor even with a line of credit attached to their payment card. About 27% of Americans surveyed would need to borrow or sell a property to generate the necessary cash flow, and 12% could not afford it at all.
According to this study, carried out every year since 2013, the situation has improved, however, since 61% of households claim to be able to cope with an unforeseen event of this amount, against only half six years ago. In addition, three-quarters of adults surveyed say, when asked to describe their economic situation, “get by” or “live well”, compared to 63% in 2013. “We continue to see that the growth of the ‘The economy benefits most American families ,’ said Michelle W. Bowman, who sits on the board of the Fed.
Disparities
The survey confirms a disparity between rural and urban areas, and between whites and minorities. Only 52% of people living in rural areas say their economic environment is favorable, compared to 66% of those living in cities. And while 70% of whites describe their environment as “good” or “excellent,” less than half of blacks say the same.
On the other hand, the feeling of benefiting from a social advancement is more marked among minorities, who are more likely to see themselves as better off than their parents, even when they have not studied. Some 61% of black people with only a bachelor’s degree say they are more financially comfortable than their parents, compared to 52% of whites. And 64% of black adults with higher education say they live better than their parents, compared to 58% for whites. More Hispanics are also more likely to feel that their situation has improved compared to their parents. ” This indicator shows that racial disparities have narrowed within a generation,” the report notes.