Oregon’s economy is only as strong as its households’ financial well-being
The health of our economy is only as strong as the financial health of the families and households that make up our state. We asked Oregonians across the state about the stability of their personal financial situation and the conditions of their neighbors.
Here’s what we found: While most respondents consider themselves in good financial shape, they were greatly concerned about the many people in their communities struggling with the effects of low wages and the increased cost of living.
“Having the means to afford basic needs is critical for feeling financially and psychologically secure, not to mention having the freedom to make choices,” says Kasi Allen, the Foundation’s lead researcher. “Like in many areas of the country, not all Oregonians have the same opportunities to build wealth.”
“It feels like a ‘barbell’ community with a number of wealthier residents (doctors, professionals, retirees) doing well and a large segment of the middle/low-income families really struggling.”
— Douglas County respondent
Although nearly 75% of the people represented in the survey reported high financial stability, the demographics of the remaining respondents are telling. For example, compared to white respondents, twice as many people of color reported that it would be difficult to get $1,000 in case of an emergency. Female respondents reported a median income of $12,000 less than male respondents. And respondents with children agreed in higher numbers that families in their community are having trouble making ends meet.
“We recognize that our financial situation could become VERY quickly unstable especially if one of our wage earners becomes sick or injured. Health care costs are concerning.”
— Clackamas County respondent
More than half of the people represented in the Oregon Voices survey agreed that jobs do not pay enough in their communities. It’s a concern that found common ground with both urban and rural residents, and also with retirees and people already being paid a living wage. Wages simply aren’t keeping up with the increasing costs of meeting basic needs.
In addition, the research team found a repeated narrative among older respondents: a deep and sincere concern for younger families’ financial well-being.
“Unless you have lived here or your family has lived here and has passed your home/ranch on to you, it is impossible to purchase a nice home, land costs are too high (and wages too low).”
— Baker County respondent
In another survey takeaway, Oregon Voices respondents commented on how the wealth divide in their communities is growing, especially due to increased housing costs. While respondents themselves are on average satisfied with their housing, as housing prices rise, they worry about what this might mean for lower-income households, particularly with those with children.
Many mechanisms for meeting the challenges identified by Oregon Voices respondents already exist, including the Earned Income Tax Credit and the Family Financial Protection Act. The tax credit provides qualifying households with an average federal credit of $2,000 ($3,000 for households with children).
“While Oregon is the only state in the country that has a higher tax credit for households with young children, we have one of the lowest rates of participation,” Allen says. “Our state’s entire economy would benefit from more awareness and support to families to take advantage of this opportunity.”
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Oregon Voices is an innovative listening project from The Ford Family Foundation and its research partners, Portland State University and ECONorthwest, that aims to learn more about the lived experiences of households in our state.
Download the financial well-being issue brief at orvoices.org/financial.
For other issue briefs, as well as interactive tools and a look at the rich data set and personal stories collected by Oregon Voices, visit orvoices.org.