Study Reveals Many Americans Live Without Economic Security

A recent report from the Urban Institute is shedding light on the dire financial circumstances of many U.S. families. According to the organization’s study, 52% of households lack economic security.

To get a more accurate picture of the average family’s financial situation, the study used a new measurement called the true cost of economic security (TCES). The gauge assessed a household’s expenses alongside the available monetary resources to pay them.

“With this measure, we can use it to see how many people are struggling economically, see how that varies by people of different demographic groups and living in different locations, [and] understand the reasons why they’re struggling,” said Gregory Acs, the Urban Institute’s vice president on income and benefits policy, per FOX Business.

It’s no secret that many American families are struggling to pay bills. Yet, prior to the TCES, many households were left unaccounted for and in need of help.

Families Secretly Lacking Economic Security

One traditional government accounting of economic need, known as the Official Poverty Measure (OPM), only looks at households that are barely surviving financially. The OPM does not count families that are able to cover basic needs but unable to reach certain milestones, such as buying a home or having enough savings to pay for emergencies.

The Urban Institute survey, which was commissioned by the National True Cost of Living Coalition, found that 49% of adults between the ages of 18 and 64 fall under the TCES line. About 46% of the 65 and older group also live below the threshold.

Most strikingly, 60% of children live in families that have just enough to pay bills but nothing beyond that. Many single-parent families as well as about half of two-parent, two-children households are simply unable to cover monthly expenses, per the study.

“Despite an improving economy, far too many Americans continue to struggle to plan beyond their next paycheck,” the National True Cost of Living Coalition stated in a press release.

Earlier this year, a Primerica Financial Services survey found many Americans were frustrated with their level of economic security. Over 55% of participants had a negative view of their personal finances, and many felt “stressed” about debt and inflation.

The new TCES measurement may ultimately help government agencies better recognize families on the brink of collapse. With more information and a better picture of household struggles, new programs and services could be implemented to empower families to climb out of financial straits.