No Financial Safety Net For Low-income Families

A recent poll found that more than one-third of low-income families do not have enough money to pay for basic financial needs.

Less than 40 percent of households bringing in $35,000 or less annually would have enough money to cover basic financial needs for a month if their income was disrupted, according to the poll from EARN, a California nonprofit.

Even fewer reported being able to do that for a longer period of time, the poll found. Only 14 percent could do it for two months and 8 percent for three months.

This poll indicates that an event such as an illness or loss of employment could lead a family into serious debt. EARN believes more government involvement should take place to help low-income families.

"While these successes (healthcare reform, credit card protection, unemployment benefits) represent an important and monumental shift in the right direction, a more comprehensive package of policies is needed to effectively enable a broader range of financial opportunities for low-income consumers and increase access to financial services," EARN President and CEO Ben Mangan said.

Speaking to a financial advisor may help low-income families determine a course of action in case financial hardship falls on them. These professionals can also help individuals learn how to save money.