Failing Grade
Are you and your family financially secure? If you live in Utah, chances are you may not be, according to a study recently released by the Corporation for Enterprise Development. Utah received a failing grade - a big fat ‘F’ - for financial security. Here are a few things I learned from the report:
Utahns Aren’t Worth Much (Financially speaking).
Utah ranks 43 out of 50 states measured for Average Net Worth (money and assets you have minus your debt). That’s an average of $52,139 to the national average of 88,803.
Utahns Aren’t Prepared for Emergencies.
Utah ranks 47 out of 50 states measured for Asset Poverty Rate. 30.8% of households in Utah (compared to 22.5% nation wide) do not have enough money to survive at the poverty level for three months if they lose employment. (Translated: not enough savings - too much debt).
Utahns Result to Bankruptcy too Often.
Utah ranks 27 out of 50 states measured for Consumer Bankruptcies. 2.37 people per 1,000 people in 2007 filed for bankruptcy. This is just slightly better than the 2.71 national average. (Translation: We can’t meet our contracts to pay our debts!)
Utahns Have a Lot of Credit Card Debt.
Utah ranks 31 out of 50 states measured for Median Credit Card Debt. The average individual in Utah has $2,987 in credit card debt, in comparison to the $2,960 national average. We’re right on target with the rest of the nation on credit card debt - but is that where we should be?
Are you living financially secure? Are you living from paycheck to paycheck?
Are you heeding the prophet’s counsel?
September 23rd, 2009 at 8:56 pm
Caleb,
These are some very interesting and sobering statistics. I know from personal experience that it is very hard to save money when living from paycheck to paycheck. I question for you… do you consider putting money into an ROTH IRA savings?
September 24th, 2009 at 7:18 am
Caleb,
I think many of these statistics are because Utahns are multiplying and replenishing the earth and have big families struggling to support themselves. I am not justifying the statistics, just trying to understand. It is good to hear from you.
Bro. A
September 24th, 2009 at 11:07 am
@ Jaxon - I use a Roth myself, but I’m not very comfortable giving advice either way. I sent an email this morning to an expert in the savings/retirement industry, and we’ll see what he says about it.
September 24th, 2009 at 11:09 am
@ Ron - Great comment! Thanks for thinking positive about others circumstances. In my experience as a loan officer and credit counselor - I’ve seen many, many cases in which families are simply doing their best to do what they can.
It’s another reminder that living the gospel does not equal a promise of immediate prosperity. (See Deceitful Theology: The Theology of Prosperity