More than Half of American Households Do Not Have Enough Money to Pay Bills and Save
A new report from the Urban Institute has found that more than half of American households do not have the resources to pay their monthly bills and have enough money left over to save. The report introduced a new measure, the True Cost of Economic Security Line (TCES), which takes into account a comprehensive set of costs that modern families face and the resources available to them. According to the report, 52% of people in the U.S. are economically insecure and unable to thrive.
The findings show that three out of five children live in families with resources falling below the TCES line, compared to 49% of adults ages 18 to 64 and 46% of adults ages 65 and older. The study also found that the vast majority of people in single-parent families fall below the TCES line, and half of all people living with two adults under the age of 65 and two children lack the resources to cover their costs.
The National True Cost of Living Coalition, a group formed by anti-poverty agencies, commissioned the study and argues that traditional measures used by the government are inadequate. The coalition says the TCES is a more accurate way to understand the cost of living in the U.S. and the challenges people face.
The report highlights the struggles many Americans face in paying their bills and saving for the future, despite an improving economy. The coalition notes that the disconnect between the available data and the reality of many Americans’ financial situations is stark, with voters expressing widespread dissatisfaction with their financial situations even as traditional economic indicators suggest progress.
The report’s findings have implications for policymakers, who can use the data to identify policies, programs, and practices that can support and empower families to meet the true cost of economic security. As one expert noted, “Once we sort of see who is struggling and why they’re struggling, that should help policymakers at federal, state, and local levels identify policies, programs, practices that can support and empower families to help them meet the true cost of economic security.”
