Current economic pressures are affecting some communities more than others.
The report, which surveyed 5,000 people in Harris County, builds on previous findings that only 34% of residents consider themselves financially secure.
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The new data shows that one in six people in the area do not have a checking or savings account.
That often leads them to store money in mobile payment apps like Venmo or Cash App. Unlike banks, the FDIC does not insure peer-to-peer payment apps and lacks comprehensive fraud protections. Only four in 10 residents reported they have a retirement savings account, and more than one in four are relying on buy-now, pay-later programs to cover everyday essentials such as groceries, clothing, and electronics.
Dr. Dan Potter, Director of the Kinder Institute's Houston Population Research Center, said the implications go beyond personal finances. "When we're thinking about access to capital, it has consequences for wealth accumulation, your health and well-being, your children's educational outcomes. There's an intergenerational component to all of this," Potter explained.
"If we don't take this seriously now, we risk continuing the inequality we see today for generations to come," he said.
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Researchers said they should serve as a roadmap for local policymakers, non-profits, and community leaders who are working to craft targeted solutions that build long-term financial stability for more Houstonians.
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