Assessing Financial Security of Low Income Households in the United States

Journal of Poverty, Forthcoming

34 Pages Posted: 14 Apr 2015 Last revised: 23 Dec 2015

See all articles by Jae Min Lee

Jae Min Lee

Minnesota State University, Mankato

Kyoung Tae Kim

University of Alabama

Date Written: December 21, 2015

Abstract

We used three financial ratios to measure the financial security of low income households: the liquidity, debt-to-income (DTI), and solvency ratios. Our analytic sample included non-retired households with incomes no greater than three times the poverty threshold as reported by the U.S. Census Bureau. From the 2010 Survey of Consumer Finances (SCF) dataset, we found that households in the higher poverty threshold were more likely to meet the recommended guidelines for the DTI and solvency ratios. This study provides important insights for researchers and policymakers in the areas of poverty and household finance.

Keywords: Financial Security, Financial Ratio, Poverty, Low Income Households, Survey of Consumer Finances

Suggested Citation

Lee, Jae Min and Kim, Kyoung Tae, Assessing Financial Security of Low Income Households in the United States (December 21, 2015). Journal of Poverty, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2593880

Jae Min Lee

Minnesota State University, Mankato ( email )

102 Wiecking Center
Mankato, MN MN 56001
United States

Kyoung Tae Kim (Contact Author)

University of Alabama ( email )

316-C Adams Hall
Tuscaloosa, AL 35487-0001
United States

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