Financial Fragility During the COVID-19 Pandemic
12 Pages Posted: 4 Nov 2020 Last revised: 15 Jan 2021
Date Written: January 12, 2021
Early in the COVID-19 pandemic, much of the US economy was closed to limit the virus’ spread, and several emergency interventions were implemented. Our analysis of older (45-75) respondents fielded in April-May of 2020 indicates that about one in five respondents was financially fragile and would have difficulty facing a mid-size emergency expense. Some subgroups were at particular risk of facing financial difficulties, especially younger respondents, those with larger families, Hispanics, and the low income. Moreover, the more financially literate were better able to handle such shocks, indicating that knowledge can provide some additional protection during a pandemic.
Keywords: Financial literacy, financial resilience, older population, vulnerable groups
JEL Classification: G53, D14, I38
Suggested Citation: Suggested Citation