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More Than Half of U.S. Households Suffered Hardship From a Financial Shock in 2015
Free Beacon ^ | 4/12/17 | Meyer

Posted on 04/12/2017 6:44:17 AM PDT by pabianice

=========================================================

Fifty-three percent of U.S. households with at least $1,000 of financial resources had hardship while experiencing a financial shock in 2015, according to a report from Pew Charitable Trusts.

A financial shock is defined as an expense such as a car repair, home expense, hospital visit, or a sudden loss of income, which comes unexpectedly and households usually do not budget for.

In 2014, 56 percent of households incurred one of these unexpected expenses, and in 2015, which is the latest data available, that percentage dropped slightly to 53 percent.

"In both years, the typical family spent almost half-a-month's income to cover its most expensive shock, with a median cost of $2,000," the report said. "In 2015, half of respondents said their most expensive shocks made it hard to cover regular expenses..."

(Excerpt) Read more at freebeacon.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
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Not good.
1 posted on 04/12/2017 6:44:17 AM PDT by pabianice
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To: pabianice

Obamacare is one of the top offenders.


2 posted on 04/12/2017 6:46:49 AM PDT by dforest
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To: pabianice
The demographic groups that reported the most difficulty with financial shocks were millennials (60 percent), those earning a salary less than $25,000 (74 percent), and minorities (57 percent of Hispanics and 56 percent of blacks).

From the article. Frankly, I'm surprised that the 'fault' was not attributed to global warming, climate change, or President Trump. To my mind, this whole debacle started much earlier. Around the time Ubama was first inaugurated. It was never lost on me that the day that SOB was inaugurated the average gas price in the US was $1.68/gallon. I never saw that number ever again.

3 posted on 04/12/2017 6:49:52 AM PDT by Gaffer
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To: pabianice

I sure as hell did!........................


4 posted on 04/12/2017 6:52:27 AM PDT by Red Badger (Ending a sentence with a preposition is nothing to be afraid of........)
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To: pabianice

Pretty low bar for financial shock. It’s like the “starvation in America” stories where those who eat rice and beans on the 30th and 31st count among the starving.


5 posted on 04/12/2017 6:52:49 AM PDT by KarlInOhio (a government contract becomes virtually a substitute for intellectual curiosity - Pres. Eisenhower)
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To: dforest

AGREED!

We were and are an Obamcare victim.


6 posted on 04/12/2017 6:54:18 AM PDT by dhs12345
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To: Gaffer
Well according to Obama energy prices will “necessarily rise” meaning that liberals hate it when energy is cheap. Only they won't admit it publicly, because it would be political suicide, but everything that they do is to make energy more expensive. It is by design.
7 posted on 04/12/2017 6:57:34 AM PDT by dhs12345
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To: pabianice

Based on the definition of what they are calling a ‘shock’ - I think it is overbroad and basically just part of life.

‘...defined as an expense such as a car repair, home expense, hospital visit, or a sudden loss of income...’

I would be interested to see what the numbers would be by category from that one might be able to discern something.


8 posted on 04/12/2017 6:58:08 AM PDT by reed13k
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To: dhs12345

The simple fact is that the more something costs, the more it can be taxed by government.


9 posted on 04/12/2017 7:04:16 AM PDT by Gaffer
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To: Gaffer
And when the government meddles, quality and value suffers.

What is deemed good healthcare now, was considered terrible insurance before Obamacare.

Well, you get what you paid for — the equivalent “silver plans” a few years ago were considered catastrophic coverage and were dirt cheap. Now those “dirt cheap” plans cost 2x or 3x or 4x under Obamacare.

And this is how they hide the rise in premiums and the Democrats try to claim that premiums haven't risen that much — under astronomically high deductibles — which means that value has suffered tremendously!

Unfortunately, the masses are too stupid to realize this.

10 posted on 04/12/2017 7:14:07 AM PDT by dhs12345
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To: pabianice

People need financial education. Too many people don’t handle their money very well.

Too many don’t understand how to save money, don’t understand how credit cards can suck your money away, etc.

People need to learn to plan for emergencies.

People need to learn that cars break down, roofs leak, and that you might lose your job.

Too many don’t plan ahead or think, what would they do if something bad happens.


11 posted on 04/12/2017 7:26:10 AM PDT by Dilbert San Diego
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To: pabianice
Not necessarily true, but even if it is, so what? Most people live at or above their means, rather than below. If you put your lifestyle at your earning point, then by definition you won't have the resources for an unexpected expense.

I know people who make plenty of money, but whose credit cards are always maxed out. They're always moaning about being broke, but take vacations to places like Hawaii (and you can keep that place), Cancun, Aruba, etc. They send their mediocre kids to expensive private schools. They, for the most part, don't keep vehicles any longer than it takes to pay them off and in many cases don't even wait that long just roll the unpaid balance into the next car loan.

In some cases financial problems are indeed caused by bad luck, but the majority are caused by lack of fiscal good sense.

12 posted on 04/12/2017 7:38:20 AM PDT by from occupied ga (Your government is your most dangerous enemy)
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To: pabianice
In 2015, half of respondents...Fifty-three percent of U.S. households with at least $1,000 of financial resources had hardship while experiencing a financial shock in 2015

Not sure how this extrapolates to over half the US households.
It's a very detailed report...here's the caveats...

Including only respondents who answered both years and oversamples of black and Hispanic respondents, the total sample size was 5,661.
13 posted on 04/12/2017 7:39:45 AM PDT by stylin19a (Terrorists - "just because you don't see them doesn't mean they aren't there")
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To: pabianice

That’s a meaningless statistic. I got in a car wreck in 2015, and it messed up my 2016 money plans what with a sudden car payment that wasn’t there. So I guess that puts me in that group even though all is well. Yes people have bad things happen, and it costs money, and even people with their finances well arranged go “oh crap” for a minute when things need to get re-arranged. BFD.


14 posted on 04/12/2017 7:44:07 AM PDT by discostu (Stand up and be counted, for what you are about to receive.)
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To: pabianice

I kept my job, but my buying power sure went down!


15 posted on 04/12/2017 8:00:59 AM PDT by bannie (...and so they did.)
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To: Dilbert San Diego
"Too many don’t plan ahead or think, what would they do if something bad happens." It's great in concept, but the reality is that today, most folks simply will not save for a rainy day. They don't care if they should or not, they don't do it. There are so many industries that grown because of this fundamental truth: Student Loans Payday Loans Rent-to-Own Pawn Shops It's like (in many cases exactly like) telling a heroin addict not to spend everything they have and everything they can steal on heroin. They hear you, but they are wondering how much money is in YOUR wallet that they could spend on heroin.
16 posted on 04/12/2017 8:11:09 AM PDT by RFEngineer
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To: pabianice

In 2015 I was recovering from my Obama layoff.


17 posted on 04/12/2017 8:15:44 AM PDT by taxcontrol (Stupid should hurt; Dad's wisdom)
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To: reed13k

It seems that any month or few months in which we do NOT have one of those type expenses is when I find it “shocking”. HA


18 posted on 04/12/2017 8:15:57 AM PDT by NEMDF
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To: dhs12345

Oh please, there are no Obamacare victims.

Even Ivanka knows selective compassion, only count the free subsidies of the takers’ hand. The misery of the makers’ hand is ignored, so do gooders can show fake compassion.

/s


19 posted on 04/12/2017 8:40:55 AM PDT by TheNext (Individual Mandate NO V.S. Individual Health Savings account HSA - YES)
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To: pabianice
A financial shock is defined as an expense such as a car repair, home expense, hospital visit, or a sudden loss of income, which comes unexpectedly and households usually do not budget for.

What kind of snowflake considers a car repair as a financial shock?

I consider it life. Just a normal part of owning a car.
20 posted on 04/12/2017 8:50:06 AM PDT by OneVike (I'm just a humble Christian waiting to go home)
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