Most households can weather a $400 financial shock, research finds — but some have to get creative
Higher prices have made it more difficult for Americans to stretch their paychecks.
Yet new research finds a bright spot: Most households have enough liquidity to cover “moderate expense shocks,” according to a recent JPMorgan Chase Institute analysis of a sample of 5.9 million households through anonymized banking data.
“We hear questions all the time like, ‘Are people living paycheck to paycheck?'” said Chris Wheat, president at JPMorgan Chase Institute.
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One question — whether Americans can handle an emergency $400 expense — is a typical gauge of household liquidity, he said.