Highlights From the FINRA Foundation National Financial Capability Study
Financial Capability in the United States
COVID-19 and Financial Capability
While the pandemic did not appear to have a negative effect on the financial capability of U.S. adults overall, its
impact has been more detrimental for those who experienced a COVID-19-related job loss.
► Among respondents indicating that they had been laid off or furloughed due to COVID-19 at some point,
nearly two-thirds (64 percent) reported having a somewhat or very difficult time making ends meet each
month, compared to only 39 percent of those who were not laid off or furloughed. Those in the former
group were also more likely than those in the latter to report spending more than their income (30 percent
vs. 16 percent).
Difficulty covering expenses and
paying bills
Spending more than income
64%
39%
COVID-19
layoff/furlough
NO COVID-19
layoff/furlough
30%
16%
COVID-19 layoff/
furlough
NO COVID-19
layoff/furlough
Respondents who experienced COVID-19-related job loss were much more likely to report feeling financially
anxious than those who did not experience such job loss (73 percent vs. 51 percent). They were also more
likely to report behavioral signs of financial stress, such as hardship withdrawals from retirement accounts,
late mortgage payments, and overdrawn checking accounts.
Hardship withdrawal
(among respondents
with defined contribution
retirement accounts)
Late mortgage payments
(among respondents
with mortgages)
Overdrawn checking
(among respondents with
checking accounts)
32%
8%
40%
10%
17%
38%
COVID-19
layoff/
furlough
NO COVID-19
layoff/
furlough
COVID-19
layoff/
furlough
NO COVID-19
layoff/
furlough
COVID-19
layoff/
furlough
NO COVID-19
layoff/
furlough
► COVID-19-related job loss appears to have disproportionately affected financially vulnerable demographic
groups, compounding the challenges these populations face in reaching financial security. Incidence of
COVID-19-related job loss is much higher among younger respondents (30 percent among ages 18 to 34,
compared to 11 percent among ages 55 and up). Respondents with lower income and education levels, and
Black/African American and Hispanic/Latino respondents are also more likely to have experienced a layoff
or furlough due to COVID-19.
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