Study author Solana Rice, at Prosperity Now, says despite an improving economy, many Nebraska families struggle in low-wage jobs that don’t allow them to save for a better future.
Rice says only about 59% of Nebraska credit users have what’s considered “prime credit.”
“Prime credit is essential now-a-days especially for being able to access all kinds of opportunities,” Rice says. “Prime credit is having a credit score that allows you to purchase a home, to make small purchases, big and large.”
The report found almost one in four Nebraskans have virtually no savings and roughly the same number face “volatile incomes.”
A quarter of the state’s households are considered “liquid asset poor,” meaning, they have so little savings they’d have to scrape by should they lose a job or suffer another significant income loss.
“In Nebraska, we see that 24% of families do have about $6,000 in savings which is three months worth of income to live above the poverty rate should you have a disruption in income,” Rice says.
The report found almost 27% of Nebraskans are in low-wage jobs, about three-percent more than the national average.
“A quarter of jobs is still a lot of jobs to be low-wage because that means families are just getting by,” Rice says, “they’re not able to really save and get ahead.”
The annual Prosperity Now Scorecard ranks the states based on five categories: financial assets & income, businesses & jobs, homeownership & housing, health care and education.
Vermont places first in the overall outcomes, while Mississippi is last.
See the full report at: scorecard.prosperitynow.org.