People are better able to handle small financial emergencies after the coronavirus pandemic started than before thanks to relief programs, a Federal Reserve Board survey released Friday showed.
The Fed survey showed that approximately 70% of adults said in July that they would be able to pay entirely for an unexpected $400 emergency expense by using immediate financial resources. That is an increase from 63% last October, before the pandemic.
The increase in financial stability is likely thanks to the availability of new and additional government or charitable assistance programs. The $1.7 trillion March CARES Act provided significant financial relief through additional unemployment benefits, $1,200 stimulus checks, and small business aid.
Many families received one or more forms of financial assistance, and the survey said the “effects of these programs were apparent in people’s overall financial well-being and ability to cover expenses.”
The survey showed that families overall were faring better financially in July than in April, but many still faced anxieties regarding layoffs and their prospects for returning to work.
