Yet the Survey of Consumer Finances, which asks respondents for their bank account balance, found the share of households who have less than $400 in their checking or savings accounts was closer to 20%.
Having spent the last 10 years of my career working for Habitat for Humanity. I can tell you many of our families had no saving or checking accounts. That way creditors could not go after any money in those accounts. Just a way of life, right or wrong.
I wonder if that includes all those that dont have checking/savings? So many of the banks charge fees these days if you don't have a minimum balance, which leads to them just not having a bank and now that paychecks can come on debit cards its even worse as they charge fees on every transaction but better than a bank overdraft fee.
As for $400, not surprised, know many many of these people, and yes they do spend on things they shouldn't but at the same point when you have nothing, its almost unbearable not to treat yourself at least once in a great while to something. For many to save that $400 would take over a year and is used in the blink of an eye so you start over again.. which means for most that means NEVER getting ahead. If their salaries were going up, they may be able to eventually climb out but for many they are in small towns where jobs are limited and wages are fixed, rent is always increasing and the car is always broken.
My niece was in this cycle and I gifted the 3% down payment for $70k house which they could fix up and make a nice home.. their rent was almost $1000, so all of a sudden they are in a home where costs were fraction of that $1000 and they were right side up, have savings, was able to reduce hours so she could go back to school, now is working thru nursing degree and their future is finally secured.. but could never come up with the down payment so could have been stuck in that cycle of poverty forever. On top of it, they now grow a garden so reduce food costs, have a shop to fix their car in so save money on car repairs, their kids are in a safe environment, better school, etc. $2100 plus some closing costs is nothing for me but everything to them, and you have to wonder how many of the poor are in that same situation, where a few thousand dollars could completely right size their entire world.
This is why I would advocate a total over haul to the social safety network that would advocate a social worker that would have freedom to spend the dollars in unique ways to "right size" households.
and as for trade jobs, I can tell you while many attempt them, its is back breaking work in horrid conditions, like heat index was 110 this week and the trades people behind us are working in houses with zero working electricity so no moving air and working their butts off... you can do it for awhile but most people can't do it long term, their bodies just can't take it... same reason you can't find farm workers. the pay often doesn't offset the long term wear on the body. my x brother in law was a welder, paid per piece, mandatory # of pieces a day, got a hot piece of metal behind his eye shield and almost lost vision in that eye, so he was out.