What can financial ratios tells us about low-income households




What Can Financial
Ratios Tells Us About Low-Income Households?


Teresa Mauldin and
Joan Moss, University
of Georgia


Using data from the 2001 Survey of
Consumer Finances, a sample of 1,026 households and families with incomes below
200% of their poverty threshold were identified and financial ratios (debt-to-net
worth, net worth-to-assets, investment assets-to-net worth, tangible
assets-to-new worth) and savings habits were analyzed. Characteristics
associated with those that appear to be managing the resources that they have
fairly well and those who do not appear to be managing their financial
resources well were identified. Characteristics explored included age of
respondent, educational attainment of respondent, employment status, nonearned income sources, and family or household