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.
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.