SAN DIEGO, CA — Nearly one in seven U.S. households lack enough readily accessible financial assets to cover three months of basic expenses if income stops, as inflation remains stubborn at 3.4 percent, according to federal data released today.

The Consumer Price Index rose 0.1 percent in July and 3.4 percent over the past year, down slightly from a 3.5 percent annual rate in June, according to the U.S. Bureau of Labor Statistics. Shelter prices were 3.2 percent higher than a year ago.

Prosperity Now’s analysis adds another dimension to that picture: the financial cushion households have to manage changes in prices, income, or expenses. The national liquid-asset-poverty rate is 14.7 percent. At the same time, just 64.2 percent of U.S. households report saving for emergencies, while 36.6 percent report difficulty paying their usual household expenses.

These measures show that a significant share of households enter periods of economic challenge without a substantial liquid cushion. Income may still be coming in, while readily accessible savings remain limited.

“Inflation tells us what is happening with prices. This additional analysis tells us how much room families have to manage increasing costs alongside everything else in their budgets,” said Marisa Calderon, President and CEO of Prosperity Now. “Nearly one in seven households does not have enough accessible resources to cover three months of basic needs if income stops. Looking at income alongside savings, housing costs and other household conditions gives us a fuller picture of threats to financial stability.”

California: Higher Incomes, Heavier Housing Costs

California shows why these measures matter when considered together.

The state’s median household income is $101,525, nearly $19,000 higher than the national median of $82,844.  California’s median household net worth is also substantially higher, at $279,960 compared with $192,500 nationally.

At the same time, 15.9 percent of California households are liquid asset poor, compared with 14.7 percent nationally. California households are less likely to report saving for emergencies, at 60.9 percent compared with 64.2 percent nationally, and more likely to report difficulty paying their usual household expenses, at 38.2 percent compared with 36.6 percent nationally. Income volatility is also higher in California, at 18.1 percent compared with 16.2 percent nationally.

Housing puts that financial margin in sharper context.

More than half of California renters, 54.1 percent, are housing-cost burdened, compared with 50 percent nationally. Among California homeowners, 30.9 percent are housing-cost burdened, compared with 22.7 percent nationally. California’s median owner-occupied home value is 5.8 times the state’s median household income, compared with 3.5 times the national median household income.

Those measures show how comparatively high household income can coexist with less room in a monthly budget.  The more income already committed to housing and other regular expenses, the less flexibility a household may have when another cost rises, income changes or an unexpected expense occurs.

“California has considerable household income and wealth, and this analysis shows the pressure that major costs can place on a family’s financial cushion,” Calderon said.  “When more than half of renters are housing-cost burdened, what a household earns is only part of the picture. We also need to understand what households have available after major expenses and what resources they can reach when circumstances change.”

California’s data also illustrate an important distinction between total household wealth and readily accessible resources.

Median household net worth in California is well above the national median, while the state’s liquid-asset-poverty rate is also slightly higher than the national rate. Net worth can include assets such as a home or business. Liquid assets focus on financial resources that can be accessed more readily when income stops or an immediate expense arises.

Both are important measures of financial security, but they answer different questions.

Understanding Inflation Alongside Household Financial Conditions

Today’s inflation report and these household financial measures also answer different questions.

Inflation quantifies how prices are changing. Measures such as liquid savings, emergency saving, income volatility, housing burden and difficulty paying regular expenses help show how households are positioned to manage change.

The same inflation rate reaches households with very different incomes, expenses, savings and financial reserves. Looking at those conditions together provides context that no single economic measure can offer on its own.

The findings draw on federal data, including U.S. Census Bureau datasets, that Prosperity Now aggregates and analyzes through its ongoing Scorecard work. Most measures cited reflect 2024 conditions; income volatility reflects 2023 data. They provide context for today’s inflation report but do not establish that inflation caused the household outcomes described here.

“The value is in seeing these measures together,” Calderon said. “Income, housing costs, and savings all tell us something uniquely valuable, and when we bring them together as part of the bigger picture, we can ask much better questions about how people are actually doing and what that means for the decisions being made around them.”

Calderon will discuss the findings today during “Changing the Script: The State of Prosperity in the U.S.,” the opening plenary of Prosperity Now’s San Diego Regional Summit. The conversation will connect the data with the choices households are navigating and examine how housing, work, immigration and public policy interact to shape financial stability.

The Summit also featured remarks from California Business and Consumer Services Agency Secretary Rohit Chopra; San Diego Mayor Todd Gloria; actress, writer, and producer Julissa Calderon; Sonja Diaz, Founder of Unseen; Noerena Limón, CEO of Casita Coalition; and more.

Be among the first to explore the 2026 Prosperity Now Scorecard update when it is released here.

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