Financial Insecurity Takes a Toll on Cities
Having a high proportion of financially insecure residents (those with less than $2,000 in savings) can cost cities millions of dollars in lost revenue, unpaid public utility bills, and public benefit use, according to a new report from the Urban Institute. Residents with little or no savings are less likely to own homes and pay property taxes, more likely to miss public utility payments, and more likely to become homeless and need financial help from the city, according to the report. The authors argue that cities should make financial empowerment for low- and middle-income families a priority, including financial coaching and providing incentives for savings.