The Precarious State of Family Balance Sheets

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The Precarious State of Family Balance Sheets

This report seeks to develop a clear picture of the current state of household financial security. It explores the ways three components of family balance sheets—income, expenditures, and wealth—have changed over the past several decades, how they interrelate, and why understanding family finances requires that they be examined together.

The study reveals a striking level of financial fragility: Despite the national recovery, many families have experienced minimal wage growth, have few savings, and could not withstand a financial emergency. This reality must begin to change if the American Dream is to remain alive and well for future generations.

The extended key finding text under “Expenditures” was updated on Feb. 5, 2016, to remove misplaced language that referred to certain types of savings and replace it with information about household spending.