New Financial Health Data Shows Vast Disparities Across Race and Ethnicity in Chicago

 

New Financial Health Data Shows Vast Disparities Across Race and Ethnicity in Chicago 

Chicago, Ill. – The Financial Health Network, the nation’s authority on financial health, in partnership with The Chicago Community Trust, released the Financial Health Pulse® 2022 Chicago Report. The report shows that nearly four in 10 (39%) Black Cook County residents and three in 10 (30%) Latinx Cook County residents are considered Financially Vulnerable compared to less than one in 10 (9%) white residents. These disparities are significantly larger than nationwide data, which show that 20% of Black Americans, 21% of Latinx Americans, and 12% of white Americans are considered Financially Vulnerable. 

The core tenets of financial health – including positive cash flow, manageable debt, and ability to safeguard assets – are necessary for building wealth. The study’s findings reveal that the racial and ethnic wealth gap is not simply a product of low earnings. Even among those earning $100,000 or more, financial health vulnerabilities remain. Only 40-44 percent of Black and Latinx residents with household earnings of more than 100,000 are Financially Healthy compared to 69 percent of white residents. 

The report offers the first comprehensive picture of financial health disparities in Chicago and broader Cook County by examining how individuals spend, save, borrow and plan. It also investigates how the region compares nationally.   

Financial vulnerability is translating into higher levels of stress and financial hardships. The report shows that more than half of Black and Latinx respondents (59% and 52%) say that they are unable to pay all their bills on time. Additionally, nearly four in ten Black and Latinx Cook County residents (39% and 38%) say they worried about running out of food over the last year. 

“These findings are a wake-up call that show in dollars and cents the effects of discriminatory policies and practices that disproportionately impact Black and Latinx communities’ financial well-being,” said Andrea Sáenz, president & CEO of The Chicago Community Trust. “We must act with urgency to change this trajectory, which will improve the lives of thousands of families and create a brighter future for our region.” 

The Chicago Community Trust is focused on closing the racial wealth gap in the Chicago region because it’s the root of our region’s most significant challenges, from a stagnant economy to public safety to health to family well-being. Understanding disparities in financial health can help to identify and shape strategic priorities to help people become more financially healthy over time, charting a new course of economic mobility in our region. 

To learn more about the Financial Health Pulse® 2022 Chicago Report, visit [URL]. Information on The Chicago Community Trust’s work to close the racial wealth gap can be found at [www.cct.org/the-wealth-gap/]. The Financial Health Network Policy and Research team is interested in exploring other place-based research. Visit the measure financial health page to learn more. 

Top-level findings from the Financial Health Pulse® 2022 Chicago Report 

Race, ethnicity and neighborhood inform financial health 

Financial health divides fall mainly on racial lines, with Black, Latinx, and Asian Cook County residents reporting lower levels of financial health than white residents. 

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