Financial Uncertainty in America
As the pandemic continued for a second straight year, whose financial health improved and who’s still at risk? The Financial Health Pulse® 2021 U.S. Trends Report reveals that although more people are now considered Financially Healthy, stark disparities remain across gender, race/ethnicity, and income. Explore this research for insights that can help shape a more equitable financial future for all.
Overall financial health improved again, but two-thirds of Americans are still not Financially Healthy.
Asian American, Black, Latinx, and people with income under $30,000 experienced significant financial health increases.
The gender gap in finhealth has expanded, with women struggling more than men.
Government programs reached those in need but recipients may be at risk as these policies expire.
The Role of Government Interventions
People considered Financially Vulnerable were more than three times more likely to
report receiving government relief than those considered Financially Healthy. People who received mortgage or rent relief were 8.9 percentage points less likely to experience increased housing insecurity in 2021 relative to 2020. Child tax credits will continue to provide a buffer for some but many relief program recipients are ineligible for these credits.
While financial health improved in the aggregate, many individuals may face growing financial challenges as government policies expire. Policymakers, financial services providers, employers, healthcare providers, and other stakeholders have a unique opportunity to use these findings to design policies and solutions that support the long-term expansion of financial health.
The Financial Health Pulse is supported by the Citi Foundation, with additional funding from Principal Foundation.
The Financial Health Network is collaborating with the University of Southern California’s Dornsife Center for Economic and Social Research to field the survey to its online panel, the Understanding America Study.
Study participants who agree to share their transactional and account data use Plaid’s data connectivity services to authorize their data for analysis.
Financial Health Pulse: 2021 U.S. Trends Report
Explore the trends. Discover new insights. Build stronger strategies.