[ashdksnndck]

I don’t understand what that survey question is supposed to be indicating. I have lots of disposable income, and by default I spend using a credit card.

US net worth at the 25th percentile is >$20k, it’s not the case that 32% of people literally don’t have the wealth to afford a $400 expense.

[fragmede]

net worth isn't cash flow. the point of that question is that many Americans actually can't just pay off an unexpected $400 charge.

[ashdksnndck]

Do you have the question wording? I suspect it’s not measuring what this discussion assumes.

[eclarkso]

From https://www.federalreserve.gov/publications/files/2024-suppl... :

  Suppose that you have an emergency expense that costs $400. Based on your current financial situation, how would you pay for this expense?
  If you would use more than one method to cover this expense, please select all that apply.
  a. Put it on my credit card and pay it off in full at the next statement
  b. Put it on my credit card and pay it off over time
  c. With the money currently in my checking/savings account or with cash
  d. Using money from a bank loan or line of credit
  e. By borrowing from a friend or family member
  f. Using a payday loan, deposit advance, or overdraft
  g. By selling something
  h. I wouldn’t be able to pay for the expense right now

A and c count as "cash or cash equivalents".

[_2d30]

Median American has $8k in a checking acct.

[astrange]

Median American household not person, but yes.

[sosodev]

Net worth is a bad comparison. It’s easy for people to have $20k in assets but very little cash on hand.