Economic shock is a bigger threat than you or residents you serve may realize.
Economic shock, or a large and unexpected expense, impacts roughly 60 percent of American households each year – the obstacle could be medical bills, a car or home repair or a job loss – so is more prevalent than many people realize. Threats to every day financial security are common, but 55 percent of households struggle to return to normalcy afterwards.
Almost as surprising is the number of homeowners who aren’t prepared for an unexpected expense – a little more than a third of American homeowners have an emergency fund of less than $500 or nothing set aside at all. It’s obvious low-income households are vulnerable. However, fully half of those with incomes of $50,000 or less have no emergency savings.
Many of those struggling in low-income households are seniors living on Social Security, just like Janet. She experienced an unexpected expense after needing emergency repairs to both her furnace and sewer service line. However, HomeServe was there to help.
As a municipal official, you can help your residents prepare or prevent economic shock, beginning with education. To learn more about economic shock and ways to combat it, download our eBook, Aging Water Infrastructure: impacts and Innovations.
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