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What is asset poverty?
Households in asset poverty do not have enough cash reserves (savings, stocks, retirement accounts, equity in a home or business) to get by at the federal poverty level for three months when their primary source of income is eliminated through job loss or other disruption.
Asset poverty is a measure of economic security and mobility based on household net worth. Net worth is defined as the total value of all assets, such as a house or business, minus any liabilities (debts). This means that asset poor households do not have enough savings or wealth to provide for basic needs during extended periods of economic hardship such as a sudden job loss or a medical emergency.