Financial Capability of Adults with Disabilities

This report discusses the financial capabilities of Americans with disabilities in comparison to other Americans. The findings are summarized below by section:

Making Ends Meet

Respondents with disabilities:

• are more than twice as likely to find it “very difficult” to cover expenses and pay bills (23% versus 9%).
• are twice as likely to have past due medical bills (38% versus 18%) and much more likely to forgo medical care because of costs (46% versus 25%), although they are equally likely to have health insurance.
• are twice as likely to be unable to come up with $2,000 if an unexpected need arose in the next month (37% versus 18%).
• experience higher levels of financial stress (people with disabilities are twice as likely to be late with a mortgage payment) and are almost twice as dissatisfied (41% versus 23% not at all satisfied) with their current financial condition.

Planning Ahead

Respondents with disabilities:

• are less likely to have set aside three months of emergency funds (30% versus 46%).
• are equally likely to have a household budget (59% versus 56%), but less likely to have set long-term financial goals (44% versus 61%).
• have a shorter time horizon for planning and budgeting with a large number only planning and budgeting for the next few months (34% versus 24%).
• are less prepared for retirement with less having figured out their retirement savings needs (31% versus 41%), less likely to have a retirement account (40% versus 62%) and more worried about running out of money in retirement (63% versus 59%).
• are less likely to have non-retirement accounts (20% versus 31%) and less willing to take any risk on financial investments (36% versus 24%).

Managing Financial Products

Respondents with disabilities:

• are less likely to have checking (84% versus 91%) and savings accounts (61% versus 77%) and more likely to be unbanked (12% versus 6%).
• are more likely to use prepaid debit cards (36% versus 24%).
• are less likely to own a home (45% versus 58%; but among those who are homeowners, more than twice as likely to be “underwater” (28% compared to 13%).
• are less likely to have any credit cards (63% versus 80%); but among those who had credit cards, equally likely to have researched and compared credit cards (37% versus 37%) and more likely to engage in expensive credit card behaviors (56% versus 40%).
• are more likely to use non-bank borrowing methods (42% versus 25%).
• are less likely to have good debt (29% versus 39% have a mortgage or home equity loan) and more likely to have bad debt (38% versus 18% have unpaid medical bills).

Financial Knowledge and Decision Making

Respondents with disabilities:

• have fewer correct responses on a test of basic financial concepts (44% versus 53% average correct answer score on a financial literacy test).
• have a lower self-perceived level of financial knowledge (70% versus 81% rated themselves positively).
• have similar access and use of financial education (20% versus 22% were offered and participated in workplace or school financial education).