1/3 of California Households Have Virtually No Savings

Cost of living in CA so high that 1/3 of California households have virtually no savings.

The scorecard also shows that 46% of households in the Golden State didn’t set aside any savings for emergencies. Furthermore,  21.1% of California jobs are in low-wage occupations.

Less than half of California households of color own homes compared to 62.5% of white, non-Hispanic households. Moreover, 60.7 percent of Latino households and 56.7 percent of black households have virtually no savings.

What To Do?

For all these Californians, it’s probably worth downloading the City Vs City cost of living calculator mobile app. With it, you can see how housing costs and unique financial circumstances would look in a different U.S. city.

This includes the relevant state and local taxes. California has some of the highest state taxes in the country. With City vs City, residents can see how their cost of living might look elsewhere.

Lars Perner is an assistant professor of clinical marketing at the USC Marshall School of Business. According to Perner, California’s high housing costs have put many households on shaky financial ground.

“The cost of housing in California is exorbitant,” he said. “That’s a big part of the problem. People pay a disproportionate amount of their income toward housing.”

Continue reading the rest of the article here.