More than 37 percent of California households have so little cash saved that they couldn’t live at the poverty level for even three months

By Kevin Smith, San Gabriel Valley Tribune

07/25/17, 9:57 AM

More than 37 percent of California households have so little cash saved that they couldn’t live at the poverty level for even three months if they lost a job or suffered another significant loss of income.
That’s the grim assessment of the 2017 Prosperity Now Scorecard. The report was compiled by Prosperity Now, a Washington, D.C.-based organization seeking to help people — particularly people of color and those with limited income — achieve financial security and prosperity.

The scorecard also shows that 46 percent of households in the Golden State didn’t set aside any savings for emergencies over the past year, a higher percentage than the national rate of 43.7 percent.

It doesn’t help that 21.1 percent of California jobs are in low-wage occupations. The scorecard found that 21.4 percent of Californians experienced income volatility over the past year, a situation that most often results from irregular job schedules.

It gets worse for households of color. They are nearly twice as likely to live below the poverty line as white households — 18.2 percent compared to 9.7 percent — and they are much less likely to own a home or other assets that could help boost their long-term financial stability.

Less than half of California’s households of color (43.9 percent) own homes, compared to 62.5 percent of white, non-Hispanic households. Moreover, 60.7 percent of Latino households and 56.7 percent of black households have virtually no savings and are considered “liquid asset poor,” compared to 28.2 percent of white households fitting that category.

“Beyond providing a cushion to get families through emergencies, increased savings and wealth allow families to invest in their futures and gain ground for future generations,” Prosperity Now President Andrea Levere said in a statement. “It’s clear that far too many people are stuck in economic limbo.”                More