The economy overall across the country may be improving, but many households in Alabama aren’t any more financially secure.
That’s the takeaway from a new report from Prosperity Now examining the financial well-being of individual households in Alabama and across the country. The report finds nearly half of Alabama households are in liquid asset poverty. That means they don’t have enough savings to live at the poverty level for three months if they suffer a significant income loss.
Lebaron Sims is the senior research manager for Prosperity Now. He says another major issue is that 2 in 5 Alabama households don’t have any access to revolving credit; that is, credit cards. And that can pose real problems.
“A lot of these households are going to be at a severe disadvantage if a car breaks down, if a child falls out of a tree and breaks their leg, even to just stave off financial emergency. Without access to revolving credit, a lot more families are going to be left behind.”
The study finds more Alabamians are employed overall; however, a third of the jobs in Alabama are at or near minimum wage, which don’t supply enough income to save.