That Lingering Fragility

Feelings of financial security among American adults are high, according to the just-out Report on the Economic Well-being of U.S. Households for 2018, a study that Fed has been conducting since 2013. Seventy-five percent of adults say they are either doing “okay” or “living comfortably,” up 12 percentage points from 2013.

But financial fragility remains high, too, especially among minorities and those lacking higher education. Forget saving for retirement: An unexpected expense of $400 can force more than one-third of American adults into a difficult financial situation.

If faced with an unexpected expense of $400, 61 percent of adults say they could cover it with cash, savings, or a credit card paid off at the next statement. But 27 percent would have to borrow or sell something to pay for the expense, and 12 percent would not be able to cover the expense at all.