consumer-affairs

Economists have several methods for measuring financial stability within a society. One such measure is “financial fragility,” or a household’s ability to access emergency funds from any source in a moment of crisis. It is a stark measure of assessment, for sure, but it is revealing of the level of vulnerability — and potential anxiety — with which many workers and their families presently cope.

The housing and investment crisis beginning in 2008 revealed some of the financial dysfunction in American households. Research has shown that those with lower financial literacy are less likely to have a checking account, emergency fund or retirement plan, and are more likely to take pay-day loans, pay only minimum credit card balances, take on unaffordable mortgages and carry debt.

Firms such as check-cashing companies and payday lenders allow customers who don’t have bank accounts to cash checks, wire money or pay utility bills. While convenient, such services come at a cost. Payday loans typically cost 18% for a two-week term, the equivalent of 468% annually.

The Issue: Millions of Americans have criminal records, even if they have never been found guilty of a crime. Having a criminal history — whether extensive or minor — can have serious repercussions, oftentimes limiting a person’s options in areas such as employment, housing and education. As it has become easier and less expensive for the public to access criminal justice records, it has become harder for individuals to overcome the stigma associated with being arrested.