More than 37 percent of California households have so little cash saved that they couldn’t live at the poverty level for even three months if they lost a job or suffered another significant loss of income, the Pasadena Star-News reported yesterday. That’s the grim assessment of the 2017 Prosperity Now Scorecard. The report was compiled by Prosperity Now, a Washington, D.C.-based organization seeking to help people — particularly people of color and those with limited income — achieve financial security and prosperity. The scorecard also shows that 46 percent of households in California didn’t set aside any savings for emergencies over the past year, a higher percentage than the national rate of 43.7 percent. It doesn’t help that 21.1 percent of California jobs are in low-wage occupations. The scorecard found that 21.4 percent of Californians experienced income volatility over the past year, a situation that most often results from irregular job schedules. The report finds that nearly 20 million U.S. households (16.9 percent of the total) have zero or negative net worth. That means they owe more than they own. The scorecard suggests several policies that could help get struggling households on track.
