Is This Normal or Should Alarm Bells be Ringing?

Consumer Bureau releases annual report of household savings, financial health indicators — results show alarming level of financial insecurity

The Consumer Financial Protection Bureau (CFPB) this week released its annual analysis of household financial health. For the first time since 2019, this year’s report shows American household financial health declining.

On a number of key indicators of financial health, a significant number of American households reported troubling information.

The key takeaway from the survey is that while unemployment remains low, nearly 40% of American households are not prepared to handle a disruption in their main source of income.

A Broken Economy?

Specifically, the survey found that 37% of households report that they could not cover expenses for longer than one month, even with accessing savings, borrowing money, selling assets, or seeking help from family and friends.