Study: Nearly a third of Mississippians are asset-poor
Daily Journal (Mississippi)
Feb 2, 2012
According to the Washington, D.C.-based Corporation for Enterprise Development’s 2012 Assets and Opportunity Scorebard, 31.9 percent of households in Mississippi are “asset-poor,” meaning they have little or no financial cushion to rely on if unemployment or another emergency leads to a loss of income, according to CFED.
The scorecard ranked Mississippi 47th in the country overall for how it residents fare in terms of achieving financial security across 52 measures in five different issue areas.
From a press release:
Many of Mississippi’s residents have jobs, but they lack adequate savings or other assets to cover expenses for three months if they lose a steady income. Asset poverty, the Scorecard’s signature measure, is a conservative estimate of financial security since it counts all assets, including those – such as a home – that would need to be liquidated to be used for day-to-day needs.
A more realistic measure of the resources available to families is “liquid asset poverty,” which excludes assets such as a home or car that are not easily converted to cash. Excluding these assets, the liquid asset poverty rate increases to 56.5 percent of Mississippi residents.
Mississippi earns an “F” in Financial Assets & Income, leaving its residents economically vulnerable. The state ranks worst in the country in income poverty rate, unbanked households and consumers with subprime credit. The state ranks 51st in low-wage jobs and 50th in average annual pay.
For a link to the study, click here.
Read more: djournal.com