Results of research conducted by Elevate’s Center for the New Middle Class show a strong majority of underserved Americans are displaying healthy financial habits.
The Center for the New Middle Class is a research-focused body engaging and educating the public about the needs of people without access to traditional credit. The study shows nonprime Americans, those with credit scores below 700, display healthy behaviors, especially in comparison to prime individuals.
Nonprime individuals check their bank accounts 50 percent and their credit scores 40 percent more often. Two thirds plan for major expenses and consider themselves careful spenders and 72 percent say they know how to create a budget.
“Our research shows the narrative about the new middle class being less engaged in their finances is just not the case. In fact it’s the opposite in many situations,” Center for the New Middle Class executive director Jonathan Walker said.
“Because they have fewer financial options, the new middle class clearly recognizes and appreciates the need to be fully aware of their financial position at any given moment.
“Although most nonprime spend what they earn or less, little room is left for unexpected expenses … you have every incentive to know exactly where you stand financially.”