On nearly every measure of household financial security, Newark ranks among the bottom of major American cities. In Newark today, 27% of households live in poverty, but far more (70%) are financially vulnerable. These households—termed as “liquid asset poor”—do not have enough savings to live at the poverty level for three months if they suffer an income disruption such as losing a job or facing a medical crisis. Communities of color fare even worse: 71% of African American households and 77% of Hispanic households in Newark are liquid asset poor.
Too many of Newark’s working families are living in a state of persistent financial insecurity, one emergency away from falling into debt or losing a home. Of households earning $50,000 to $75,000 annually, 60% are liquid asset poor.The inability to bounce back from financial pitfalls not only hurts Newark’s families, it stifles the city’s long-term economic growth.
The findings are from a new data analysis from Family Assets Count, a project of CFED (the Corporation for Enterprise Development) and the Assets & Opportunity Initiative in collaboration with Citi Community Development and the United Way of Essex and West Hudson. Through cutting edge data, tools, and resources, Family Assets Count leverages the power of cities to improve financial stability for families.
The analysis spotlights a range of challenges confronting Newark’s vulnerable families:
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
Building Financial Security in Newark, NJ (A&O Network)
Click here for a complete list of stories covering Family Assets Count.