Another Shutdown Averted, but Many Americans Still a Paycheck Away from Financial Distress

On Friday Congress passed and the President signed legislation that will prevent another partial government shutdown like the one last month that captured headlines for weeks. But beyond the headlines, the shutdown also served as a very public reminder of a widespread reality in urgent need of solutions: far too many American families are a paycheck away from financial distress. A survey by Prudential of furloughed workers, contractors, and their spouses found that during the shutdown, 40 percent borrowed money from family and friends, 25 percent visited a food bank, and 23 percent reduced or stopped spending on health care for themselves or a family member. Nearly half of U.S. households have little or no buffer
These painful financial tradeoffs are all too familiar to all working families, not just federal employees and contractors. Nearly half (46 percent) of all U.S. households say they couldn’t cover three months or more of living expenses without borrowing money or withdrawing from their retirement accounts; according to the US Financial Health Pulse, 20 percent have between one and two months of living expenses saved, 15 percent have one to three weeks, and 11 percent have less than one week. The shutdown lasted just short of five weeks. Read more here >>>

thumbnail courtesy of aarp.org

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