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Report: Many Connecticut households can’t pay for basic necessities

September 2, 2018

In Connecticut, almost half of households do not have the savings to cover three months of living expenses, risking a real financial spiral in the event of a typical family emergency (illness, car breakdown, appliance replacement, etc.).

In addition, the new ALICE Report reveals the following trends: Differences in financial security by age, race, and ethnicity persist, creating challenges for ALICE families. The growth in the “gig” economy and on-demand employment is shifting more financial risk to workers and ALICE households. ALICE families are more vulnerable to an unexpected emergency, because it is becoming more difficult to save and build assets. The changing composition of households are part of the ALICE story. The wealth-health gap in America leads to health insecurity. And the new ALICE Report provides many more insights into the causes and consequences of financial hardship.

The report recommends both short-term and long-term strategies to help affected families and strengthen communities. Connecticut’s United Ways are responding to provide a hand up for these households through a number of these short-term and long-term strategies.

Connecticut’s United Ways are helping working families to increase their financial security by building a life-long habit of saving. United Ways are promoting SaverLife Connecticut, which combines a goal-based savings incentive program digital financial coaching and online resources.

United Way organizations are working to help ALICE families build their assets and savings by supporting tax preparation at VITA sites where eligible families can secure tax credits (EITC, CTC) and begin saving, and through financial education and budget coaching.

Continue reading: New Haven Register