Leveraging Innovation to Support the Financial Health of LMI Families with Children
*Names in bold indicate Presenter
Across June and July 2014, we surveyed 7,152 households -- including a special over-sample of household with income below $50,000 – asking them about their budgeting, credit, spending, saving, attitudes, preferences, behaviors, and the financial products and technologies they use. Our initial analysis focused on the consumer financial health segments that these data revealed. Subsequent analyses will dig deeper into these data with a focus on key consumer segments.
Joint work with NYU and CFSI has shown a light on the key role that income volatility plays in the lives of low-to-moderate income (LMI) households. The proposed presentation at APPAM will share insights on the LMI (under $50,000) segment of our CFHS sample. We find that one-third of LMI households find it difficult to predict their income from one month to the next – the paper will pay special emphasis to income volatility, planning behaviors, and future-mindedness of these households and how these relate to financial health. We will explore differences in behaviors and attitudes between the low and moderate income portions of our sample and provide data-driven suggestions for policy, practice, and education.