Indicator 2:	Bank account ownership in low income households
	Trend
	vs. Georgia

What does it measure?
This indicator is the percentage of low income families in Chatham County that had a checking or savings account with a minimum balance of $300 at any given time during the past year. Low income households are defined as those where one or two parents work 50 weeks per year or more, combined, and the total household income is less than 250 percent of the federal poverty income level for a one parent, two child household.

Why is it important?
Building savings is essential for establishing an emergency reserve of financial assets to mitigate the adverse effects of unexpected financial emergencies such as job loss, health problems or for critical vehicle or home repair expenses. The establishment of a savings asset also provides a basis for long-term asset building for a home, higher education and retirement. Savings are especially important for individuals and families of lower income levels who have fewer assets and are much less likely to have access to credit from financial institutions.

The sum of $300 is the amount typically needed for a single, uncomplicated emergency. It reflects the average loan amount obtained through payday loan services. By maintaining a savings or checking account with $300, families can avoid high-fee check-cashing or payday loan services while enhancing the household’s credit-worthiness.

How are we doing?
Among low income households in Chatham County in 2010, 73.5% had a checking or saving account. Among those fully employed low income households, 91.7% of whites had accounts, as compared to 76.0% for African Americans. Among those households where individuals were not fully employed, the incidence of bank account ownership fell to 71.3% for whites and 56.5% for African Americans.

Approximately 48% of low income households in Chatham County were able to maintain a continuous combined balance of $300 in checking and saving accounts. Among fully employed households, 57.3% were able to maintain a balance of $300 in their bank accounts. The figures were similar for whites and African Americans, although the figure was higher for African Americans (59% vs. 54.1%). In households where individuals were not fully employed, the incidence of bank account ownership declined to 40.2% overall, 50.4% for whites, and 26.1% for African Americans.

LOW INCOME HOUSEHOLDS WITH A SAVING OR CHECKING ACCOUNT Source: AASU Public Service Center

LOW INCOME HOUSEHOLDS WITH CONTINUOUS COMBINED BALANCE OF $300 IN SAVING OR CHECKING ACCOUNT Source: AASU Public Service Center