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Only about one-third of Houstonians say they are "financially secure."
According to a recent survey conducted by Rice University’s Kinder Institute for Urban Research, more than 5,500 Harris County residents were surveyed in late 2023 with 64% of respondents saying they regularly save, use a formal or informal budget and have enough money to cover day-to-day expenses for a few months. But, only about one-third (34%) of Harris County residents say they are financially stable.
Director of the Houston Population Research Center at Rice University's Kinder Institute for Urban Research Daniel Potter said it was a sobering discovery for them that so many people said they didn't have enough money in their savings to cover a few weeks worth of expenses or a pop up expense.
"If all they had were their savings, how long could they cover their day-to-day expenses, their rent, their grocery bill, transportation, it'd be less than two weeks," Potter said.
Potter explained that they use a classic, $400 question to see how people would fair if they had to cover a $400 expense that isn't in their day-to-day or weekly expenses. No surprise to Potter, the unfortunate emergencies that come out of nowhere is what set people back financially the most.
"It's the classic emergencies of housing and car repairs and medical expenses," he explained. "You can put that all under the general umbrella of life comes at you fast and that these things disrupt people's ability to set aside something at the end of the month."
What researchers discovered from their survey too was that people would consider themselves to financially secure if they had more in their savings. Potter suggests everyone to budget their finances, regardless of their financial situation.
"We do know from other research that budgeting is a good financial practice for people to engage in, but 40% of people who don't budget, said the reason they don't budget is because they don't make enough money."
Although it is an understandable thought, Potter said it is not a true thought. Managing your money is important in any household and budgeting is a good way to start saving.