Insights ¦ Money on my mind: Understanding the savings, debt and financial resilience of low-to-middle income families

Published by: Resolution Foundation
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Key Take Aways

Wealth, including liquid savings and accessible debt, plays a crucial role in financial resilience for low-to-middle income families, influencing their ability to respond to economic shocks.
Two-thirds (64%) of working-age families have less than three months' income saved, with the disparity widening among the poorest, where 74% lack sufficient liquid savings.
Many low-income households hold less than £1,000 in readily accessible savings, with almost half (49%) of the poorest fifth falling below this threshold.
Despite some growth, over two-thirds of low-to-middle income households save sporadically or not at all, limiting their capacity for sustainable financial buffering.
Debt levels have broadly decreased since the financial crisis, with lower real-terms consumer debt, especially among the poorest, though borrowing costs have increased and credit conditions tightened.
Household arrears on priority bill...