Liquid Asset Poverty Rate

Definition

Percentage of households without sufficient liquid assets to subsist at the poverty level for three months in the absence of income, 2010. 

Liquid assets are those that are held in cash or can be liquidated quickly: bank accounts and other interest-earning assets; and equity in stocks, mutual funds and retirement accounts (IRAs, 401(k)s and KEOGH accounts). Liquid assets exclude equity in businesses, vehicles, homes and other real estate.

The threshold used to determine the liquid asset poverty rate varies by family size. A family of four with liquid assets less than $5,763 in 2012 is liquid asset poor.

Data are point estimates produced from a national survey with relatively small samples for some states, which can result in imprecise estimates and ranks. For more information on how we measured precision and to download margin of error data for each state, see here.

Description

Nearly half (43.9%) of households do not have a basic personal safety net to prepare for emergencies or future needs, such as a child’s college education or homeownership. These families are considered “liquid asset poor,” meaning they lack the savings to cover basic expenses for three months if unemployment, a medical emergency or other crisis leads to a loss of stable income.

Having emergency savings can help families better weather an economic setback. Research has found that households with assets are much less likely to suffer serious hardships in the event of an economic emergency, such as a job loss. Families without emergency savings, on the other hand, are much more vulnerable to economic catastrophe, such as foreclosure, homelessness and dependence on public assistance.  

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Liquid Asset Poverty Rate

State	Liquid Asset Poverty Rate (%)	Rank
United States	43.9%
Alabama	63.8%	41
Alaska	—	—
Arizona	45.2%	26
Arkansas	51.6%	34
California	44.4%	24
Colorado	45.8%	28
Connecticut	36.6%	15
Delaware	34.2%	10
District of Columbia	31.7%	7
Florida	51.9%	35
Georgia	55.8%	38
Hawaii	29.7%	5
Idaho	44.2% **	N.R.
Illinois	42.0%	19
Indiana	42.2%	20
Iowa	26.2%	2
Kansas	34.6%	11
Kentucky	48.1%	31
Louisiana	47.4%	30
Maine	46.4% **	N.R.
Maryland	35.6%	14
Massachusetts	37.3%	16
Michigan	40.2%	18
Minnesota	23.6%	1
Mississippi	57.7%	39
Missouri	43.5%	22
Montana	40.0% *	N.R.
Nebraska	28.5% *	N.R.
Nevada	62.5%	40
New Hampshire	31.0%	6
New Jersey	44.6%	25
New Mexico	53.7%	37
New York	45.5%	27
North Carolina	49.9%	33
North Dakota	28.0%	4
Ohio	43.2%	21
Oklahoma	43.8%	23
Oregon	34.8%	12
Pennsylvania	37.4%	17
Rhode Island	27.8%	3
South Carolina	47.2%	29
South Dakota	40.2% **	N.R.
Tennessee	53.7%	36
Texas	49.5%	32
Utah	33.1% **	N.R.
Vermont	25.1% *	N.R.
Virginia	35.0%	13
Washington	32.9%	8
West Virginia	47.4% **	N.R.
Wisconsin	33.2%	9
Wyoming	39.2% **	N.R.

Source

Survey of Income and Program Participation, 2008 Panel, Wave 7. Washington, DC: U.S. Department of Commerce, Census Bureau, 2010. Data calculated by the Bay Area Council Economic Institute.

"—" indicates that no data is available, or data is suppressed due to a margin of error that is greater than 50% of the estimate.

"N.R." indicates that data are not ranked because the estimate or rank is too imprecise to say with confidence how the state compares to other states.