The 2016 Challenge topic of the Financial Solutions Lab is Helping Americans Weather Financial Shocks. This issue brief introduces the topic, the reasons it is an important problem to solve, and some innovative approaches to doing so.

This brief explores the challenge of household cash flow challenges, its impact on financial health, and the opportunity for innovation.

Over 29 million Americans comprise the “at risk” segment – most likely of all the segments to live paycheck to paycheck and run out of money before the end of the month.

A whopping sixteen percent of the country is unengaged with their financial situation. This segment earns its name from these consumers’ lack of awareness about their financial lives and their low level of engagement with traditional financial services.

More than half of Americans in the tenuous segment live paycheck to paycheck (53%) and struggle to keep up with bills and credit payments.

Strivers are generally able to make ends meet, but many of them are not satisfied with their current financial situation and are working to better their financial circumstances.