CFED Scorecard

CFED Assets & Opportunity Scorecard

Financial Assets & Income
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, 2011.

Description

Liquid asset poverty is a measure of the liquid savings households hold to cover basic expenses for three months if they experienced a sudden job loss, a medical emergency or another financial crisis leading to a loss of stable income. Nearly half (43.5%) of households in the United States do not have a basic safety net to weather emergencies or prepare for future needs, such as a child’s college education or homeownership.

Having savings can help families better weather an economic setback. Furthermore, it can ensure that a household will not lose key wealth building vehicles, such as a home or business, during a financial set back, which could possibly threaten the household’s long-term financial well-being. Research has found that households with assets are much less likely to suffer serious hardships in the event of an economic emergency. 

To see the data disaggregated by race and ethnicity, where available, click on the Data by Race tab below.

43.5% of United States households are liquid asset poor

Liquid Asset Poverty Rate, 2011

StateLiquid Asset Poverty Rate (%)Rank
United States 43.5%
Alabama 62.7% 39
Alaska
Arizona 45.7% 24
Arkansas 51.9% 34
California 45.9% 25
Colorado 39.2% 17
Connecticut 39.3% 18
Delaware 32.0% 4
District of Columbia
Florida 48.7% 28
Georgia 55.8% 37
Hawaii 29.0% * N.R.
Idaho 45.5% ** N.R.
Illinois 38.3% 13
Indiana 43.2% 20
Iowa 26.2% 1
Kansas 35.4% 9
Kentucky 52.2% 35
Louisiana 49.9% 31
Maine 46.5% 26
Maryland 34.8% 7
Massachusetts 35.3% 8
Michigan 38.8% 15
Minnesota 27.8% 2
Mississippi 61.9% 38
Missouri 38.9% 16
Montana 42.3% * N.R.
Nebraska 25.4% * N.R.
Nevada 55.6% 36
New Hampshire 21.1% * N.R.
New Jersey 40.2% 19
New Mexico 44.4% 21
New York 44.7% 22
North Carolina 51.5% 33
North Dakota 30.9% 3
Ohio 44.7% 23
Oklahoma 49.1% 29
Oregon 36.3% 10
Pennsylvania 36.4% 11
Rhode Island 38.7% 14
South Carolina 47.3% 27
South Dakota
Tennessee 50.0% 32
Texas 49.8% 30
Utah 31.7% * N.R.
Vermont 27.0% * N.R.
Virginia 36.5% 12
Washington 32.5% 5
West Virginia 48.6% ** N.R.
Wisconsin 34.1% 6
Wyoming

Notes on the Data

* Indicates that the margin of error is greater than 25% of the estimate, and as such, this estimate is too imprecise to rank. Caution should be used when using this data.

** Indicates that estimate is unable to be ranked because the ranks are too closely clustered to say with confidence how the state compares to other states.

Liquid Asset Poverty Rate by Race and Ethnicity

Liquid Asset Poverty Rate (%)
StateWhite HHs HHs of ColorBlack HHsAsian HHsHispanic HHs
United States 34.7% 60.6% 67.2% 35.3% 71.0%
Alabama 55.1% 77.2% 80.2%
Alaska
Arizona 33.0% 67.4% 71.8%
Arkansas 46.6%
California 32.5% 51.7% 63.5% 40.3% 67.6%
Colorado 32.5%
Connecticut 29.5%
Delaware 22.7%
District of Columbia
Florida 37.5% 62.5% 66.3% 75.6%
Georgia 48.4% 66.0% 66.1%
Hawaii 30.2%
Idaho 40.5%
Illinois 30.1% 55.9% 65.5% 66.0%
Indiana 38.7% 60.9% 62.8%
Iowa 22.6%
Kansas 26.4%
Kentucky 48.7%
Louisiana 39.6% 69.5% 69.7%
Maine 43.6%
Maryland 24.0% 49.1% 55.9%
Massachusetts 30.1% 53.9%
Michigan 32.0% 66.3% 74.4%
Minnesota 23.6%
Mississippi 50.7% 76.3% 77.3%
Missouri 34.2% 62.1% 67.9%
Montana 35.1%
Nebraska 21.7%
Nevada 38.8%
New Hampshire 19.0%
New Jersey 29.3% 50.6% 58.8% 26.0% 72.6%
New Mexico 31.4% 59.8%
New York 32.9% 67.1% 72.2% 43.2% 70.3%
North Carolina 41.3% 67.4% 67.9%
North Dakota 28.3%
Ohio 39.1% 69.4% 69.7%
Oklahoma 42.5% 66.0%
Oregon 29.1%
Pennsylvania 31.4% 64.0% 70.0%
Rhode Island 36.1%
South Carolina 37.8% 68.1% 68.0%
South Dakota
Tennessee 44.9% 71.6% 73.5%
Texas 37.6% 54.1% 62.5% 70.6%
Utah 28.5%
Vermont 20.5%
Virginia 28.8% 55.8% 62.4%
Washington 28.8% 34.2% 57.7%
West Virginia 47.4%
Wisconsin 28.6% 66.3%
Wyoming

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

Estimates for White households are generated for the White, non-Hispanic population. Likewise, estimates for Hispanic households include all households of Hispanic or Latino origin, regardless of race.

Change in Liquid Asset Poverty Rate

Liquid Asset Poverty Rate (%)
State2006200920102011
United States 41.4% 43.1% 43.9% 43.5%
Alabama 57.0% 64.5% 63.8% 62.7%
Alaska 38.8%
Arizona 45.0% 44.4% 45.2% 45.7%
Arkansas 52.5% 50.8% 51.6% 51.9%
California 39.6% 43.1% 44.4% 45.9%
Colorado 34.7% 42.0% 45.8% 39.2%
Connecticut 38.2% 35.2% 36.6% 39.3%
Delaware 32.8% 33.8% 34.2% 32.0%
District of Columbia 33.1% 37.2% 31.7%
Florida 45.3% 48.4% 51.9% 48.7%
Georgia 54.7% 57.4% 55.8% 55.8%
Hawaii 32.8% 22.8% 29.7% 29.0% *
Idaho 41.9% 44.3% 44.2% 45.5%
Illinois 36.7% 39.8% 42.0% 38.3%
Indiana 41.8% 42.2% 42.2% 43.2%
Iowa 26.2% 29.0% 26.2% 26.2%
Kansas 37.6% 35.0% 34.6% 35.4%
Kentucky 45.2% 47.3% 48.1% 52.2%
Louisiana 51.3% 46.8% 47.4% 49.9%
Maine 36.1% 48.0% 46.4% 46.5%
Maryland 30.0% 32.3% 35.6% 34.8%
Massachusetts 32.7% 34.9% 37.3% 35.3%
Michigan 38.8% 39.8% 40.2% 38.8%
Minnesota 27.5% 26.6% 23.6% 27.8%
Mississippi 58.1% 56.5% 57.7% 61.9%
Missouri 39.2% 38.2% 43.5% 38.9%
Montana 43.3% 39.8% * 40.0% * 42.3% *
Nebraska 31.1% 26.0% * 28.5% * 25.4% *
Nevada 38.5% 52.2% 62.5% 55.6%
New Hampshire 22.7% 24.1% 31.0% 21.1% *
New Jersey 32.6% 41.2% 44.6% 40.2%
New Mexico 63.4% 49.1% 53.7% 44.4%
New York 47.8% 46.4% 45.5% 44.7%
North Carolina 46.8% 46.3% 49.9% 51.5%
North Dakota 35.6% 35.1% 28.0% 30.9%
Ohio 39.5% 43.6% 43.2% 44.7%
Oklahoma 46.6% 48.2% 43.8% 49.1%
Oregon 40.9% 37.6% 34.8% 36.3%
Pennsylvania 36.5% 34.6% 37.4% 36.4%
Rhode Island 30.2% 33.5% 27.8% 38.7%
South Carolina 47.6% 47.6% 47.2% 47.3%
South Dakota 30.4% 43.4% 40.2%
Tennessee 48.8% 53.5% 53.7% 50.0%
Texas 47.9% 50.6% 49.5% 49.8%
Utah 41.9% 35.0% 33.1% 31.7% *
Vermont 20.8% 25.1% * 27.0% *
Virginia 32.3% 35.9% 35.0% 36.5%
Washington 32.1% 30.7% 32.9% 32.5%
West Virginia 54.5% 55.6% 47.4% 48.6%
Wisconsin 31.9% 33.2% 33.2% 34.1%
Wyoming 48.5% 46.4% 39.2%

Definition

Percentage of households without sufficient liquid assets to subsist at the poverty level for three months in the absence of income, 2011.

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 $6,063 in 2015 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.

Source

Survey of Income and Program Participation, 2008 Panel, Wave 10. Washington, DC: U.S. Department of Commerce, Census Bureau, 2013. Data calculated by Haveman Economic Consulting.

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

 "NR" 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.

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