Report: One-third of Michigan families are liquid poor, no savings

WASHINGTON (WLNS) – One-third of Michigan families are in dire financial need.

That’s according to a new report released Tuesday morning by Prosperity Now.

After housing, utilities, food and transportation costs, almost 40% of people in the state have no money left to put up for a rainy day.

A new report shows that low-wage jobs are keeping families in debt and stopping them from living a prosperous life.

So the question is, how much money do you have in your savings account?

Do you have enough money put away right now to get by for three months without a steady income?

The Michigan Economic Impact Coalition says over one-third of Michigan families are living paycheck-to-paycheck and they are just one emergency away from a financial crisis.

“We’re not talking again living high on the hog,” says MEIC Program Director Ross Yednock.

“We’re talking just getting by and these families, you know are right on that brink.”

If you’re having problems with saving and building personal wealth you’re not alone.

Michigan ranks 27th in the country in overall financial security, while 38% of people in the state don’t have enough cash on hand to be self-sufficient in a financial emergency.

According to a new report by Prosperity Now, almost 42% of Michigan households have no money saved.

The scorecard shows that although employment is up in the state one in four Michigan workers are earning poverty wages.

The report says 26% of Michigan families find it hard to cover basic needs, making it nearly impossible to save.

“To put those numbers in perspective, for a single person, that’s about $3,000 in savings,” says Yednock.

“For a family of four it’s $6,000 in savings.”

The report recommends for the state to support policies that focus on long-term prosperity programs.

Researchers propose spending more in temporary assistance and micro-business services.

Prosperity Now says those solutions can help more people not only get by, but actually get ahead.

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Michigan Headlines

More Michigan