On nearly every measure of household financial security, Newark ranks among

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1 Financial Insecurity in Newark: A Data Profile FamilyAssetsCount.org Newark, NJ Households On nearly every measure of household financial security, Newark ranks among the bottom of major American cities. In Newark today, 27% of households live in poverty, but far more (70%) are financially vulnerable. These households termed as liquid asset poor do not have enough savings to live at the poverty level for three months if they suffer an income disruption such as losing a job or facing a medical crisis. Communities of color fare even worse: 71% of African American households and 77% of Hispanic households in Newark are liquid asset poor. Too many of Newark s working families are living in a state of persistent financial insecurity, one emergency away from falling into debt or losing a home. Of households earning $50,000 to $75,000 annually, 60% are liquid asset poor. The inability to bounce back from financial pitfalls not only hurts Newark s families, it stifles the city s long-term economic growth. The findings are from a new data analysis from Family Assets Count, a project of CFED (the Corporation for Enterprise Development) and the Assets & Opportunity Initiative in collaboration with Citi Community Development and the United Way of Essex and West Hudson. Through cutting edge data, tools, and resources, Family Assets Count leverages the power of cities to improve financial stability for families. The analysis spotlights a range of challenges confronting Newark s vulnerable families: In Newark, 75% of households with an income between $25,000 and $50,000 are liquid asset poor. Liquid asset poverty is greater in households led by someone with no education above a high school diploma. 76% of households headed by someone with no higher than a high school degree are liquid asset poor, as opposed to 43% of households headed by a person with a bachelor s degree. 83% of single-parent households and 75% of households with children, led by someone with no education above a high school diploma, live in liquid asset poverty in Newark. A quarter of Newark households are identified as unbanked or underbanked. 38% of Newark s population receives the federal Earned Income Tax Credit (EITC), but only 4% are utilizing free tax prep services to receive their refund. Through cutting-edge data, tools and resources, Family Assets Count leverages the power of cities to improve financial stability for families and advances programs and policies that reduce barriers and encourage families to save and build assets. For more information and data, visit FamilyAssetsCount.org. LIQUID ASSET POVERTY 70% Don t have enough savings to live above the poverty line for three months ASSET POVERTY 52% Don t have enough net worth to live above the poverty line for three months UNBANKED 23% Don t have a checking or savings account UNDERBANKED 27% Have a bank account but still use check-cashing or payday loans Asset Poverty & Liquid Asset Poverty: CFED, 2014 Assets & Opportunity Scorecard; U.S. Census Bureau, of Income and Program Participation (SIPP, used for US and all states excluding AK, DC, SD, WY); FDIC, Unbanked and Underbanked: 2013 FDIC National of Unbanked and Underbanked Households (used for US, all 50 states, the District of Columbia and the 71 largest Metropolitan Statistical Areas). Estimates for more localized geographies are derived from CFED s statistical modeling process using the FDIC or SIPP and American Community data. The figures are geographic estimates and are not meant to directly reflect the FDIC or SIPP data.

2 MEASURING FINANCIAL INSTABILITY The concept of asset poverty serves to broaden our definition of financial instability to include not only what a family earns, but also what it saves and owns. Rates of liquid asset and asset poverty are typically far higher than income poverty, demonstrating the pervasiveness of the issue. A family of four in 2015 is... INCOME POOR LIQUID ASSET POOR ASSET POOR Don t earn income above the federal poverty level Don t have 3 months of savings to live above poverty level (money in bank accounts, stocks, mutual funds and retirement accounts) Don t have 3 months of net worth to live above poverty level (total assets total liabilities) IF WHAT THEY EARN IF WHAT THEY SAVE IF WHAT THEY OWN is below $2,021/mo is below $6,062 is below $6,062 OPPORTUNITIES TO BUILD ASSETS FOR RESIDENTS Advancing families out of these types of poverty and towards financial security means families can get ahead, not just get by. The City of Newark, Citi Community Development and the United Way of Essex and West Hudson are creating opportunities for individuals and families in Newark to build financial security, enabling communities to prosper. These opportunities include: Improving access to quality jobs for Newark residents, and revitalizing city businesses and institutions Helping families build their savings and assets through programs such as IDA and Bank On Providing free classes on financial literacy, budgeting, credit counselling, financial planning, FAFSA preparation and lending Opening new free tax preparation sites, including one at City Hall, providing residents with access and the tools/supports they need to take full advantage of tax initiatives like the Earned Income Tax Credit Providing those starting their first jobs with financial empowerment, and access to banking products and services in their communities Supporting residents who are pursuing homeownership, entrepreneurship, and/or higher education Investing in Newark s low-income communities through City programs including My Brother s Keeper, Center of Hope communities, and Model Neighborhoods The data makes clear that many Newark families, especially low-income and families of color, are living on the brink of financial catastrophe. As the Newark economy grows, we must ensure that we are not leaving behind vulnerable families. Whatever the measure whether it be income, liquid asset poverty, income poverty, unemployment, homeownership, or educational attainment racial and ethnic disparities must be addressed through targeted policy, advocacy and practice. 2 PUBLISHED OCTOBER 2015 For more information and data, visit FamilyAssetsCount.org.

3 WHO IS LIQUID ASSET POOR IN? Liquid asset poverty means there is no slack in a family s budget. If a liquid asset poor family faces an unforeseen expense, such as a car repair or a medical bill, they may have to borrow to cover the tab. Liquid asset poverty also means deferring future financial security whether that is saving for retirement or investing in a home or college education. HOUSEHOLDS IN LIQUID ASSET POVERTY 70% On nearly every measure of household financial security, Newark ranks among the bottom of major American cities. 70% of Newark households are liquid asset poor, and those most likely to be affected are households of color, low-income households, single parents, and those without a college degree. 3 88% 75% Below $25k BY RACE & ETHNICITY 55% 71% 77% of of of White Black or Hispanic Whites Blacks or Hispanics or African-Americans Latinos BY HOUSEHOLD INCOME 60% 48% 31% $25k-50k $50-75k $75k-100k Above $100K BY EDUCATION Advanced Degree 31% Bachelor s Degree Associate s Degree or Some College Only BY POVERTY STATUS 64% Households above the poverty line 2011 POVERTY LINE (family of 4): $23,850 88% Households below the poverty line 43% 66% High School Degree Only 76% BY HOUSING 48% of Homeowners 77% of Renters BY AGE OF HOUSEHOLDER 74% 70% < 35 years old years old 67% 67% years old years old BY FAMILY STATUS Married households Households with Children Single-parent households 58% 75% 82% Note: Estimates not published by the FDIC or CFED s Assets & Opportunity Scorecard are derived from a statistical model to create geographic estimates at the local level and are not meant to directly reflect the FDIC or SIPP data. Caution should be used in interpreting the local estimates as the statistical model is based on national surveys of fewer than 50,000 households. For more information and data, visit FamilyAssetsCount.org. PUBLISHED OCTOBER

4 POPULATION AND DEMOGRAPHICS Total Population 277, ,615 19,839,700 8,867, ,861,723 White 30, ,677 9,627,741 5,133, ,212,409 Black or African American 136, ,856 3,140,428 1,127,451 38,418,235 American Indian and Alaska Native 583 1,065 29,525 10,464 2,081,188 Asian 4,128 37,658 2,003, ,910 15,416,646 Hispanic or Latino 96, ,698 4,610,830 1,645,444 52,952,497 Total Households 91, ,690 7,067,935 3,181, ,731,304 White 10, ,027 3,867,230 2,031,762 80,761,578 Black or African American 48, ,725 1,178, ,710 13,977,892 American Indian and Alaska Native ,710 7, ,177 Asian 1,249 11, , ,580 4,839,422 Hispanic or Latino 28,649 48,144 1,356, ,632 13,945,351 Population with Disability 17.3% 12.6% 9.8% 10.3% 12.3% U.S. Citizenship Rate 81.5% 87.2% 86.5% 89.7% 92.9% Speak English Less Than "Very Well" 23.1% 14.5% 17.1% 12.4% 8.6% HOUSEHOLD FINANCES Asset Poverty 52.3% 34.9% 26.6% 24.2% 25.4% Liquid Asset Poverty 70.2% 50.0% 41.1% 40.2% 43.5% Households with Zero Net Worth 33.2% 23.2% % 17.0% Median Household Income $32,338 $52,762 $65,253 $70,324 $52,176 White $42,210 $88,493 $82,549 $79,853 $57,431 Black or African American $29,491 $35,665 $43,772 $45,060 $34,560 American Indian and Alaska Native $27,132 $27,132 $35,878 $37,061 $36,252 Asian $32,716 $105,850 $75,626 $101,504 $71,580 Hispanic or Latino $34,058 $41,775 $42,284 $47,681 $41,107 Income Poverty Rate 27.1% 14.4% 11.4% 8.2% 11.7% White 13.9% 3.8% 4.9% 4.0% 7.3% Black or African American 29.9% 22.5% 18.5% 17.9% 23.9% American Indian and Alaska Native % 20.9% 24.3% Asian 23.5% 4.3% 12.1% 5.2% 9.6% Hispanic or Latino 29.1% 22.1% 22.1% 18.7% 22.8% Unbanked Households 34.0% 13.1% 9.6% 8.2% 7.7% Underbanked Households 33.6% 24.7% 19.5% 19.6% 20.0% Average Credit Card Debt - $12,864 $12,371 $13,271 $9,890 Consumers with Subprime Credit % 51.0% 51.4% 55.6% Borrowers 90+ Days Overdue - 5.8% 3.5% 3.9% 3.4% * The New York-Newark-Jersey City, NY-NJ-PA Metropolitan Statistical Area consists of Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, and Westchester Counties in New York; Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, and Union Counties in New Jersey; and Pike County in Pennsylvania. - indicates that no data is available 4 PUBLISHED OCTOBER 2015 For more information and data, visit FamilyAssetsCount.org.

5 USE OF SERVICES Households Receiving SNAP 29.8% 16.1% 13.6% 8.9% 13.4% Households Receiving Public Assistance 13.2% 6.5% 3.2% 2.9% 2.9% Households Receiving SSI 11.3% 6.8% 5.7% 4.4% 5.3% Total Tax Filers Receiving EITC 37.8% 23.6% 19.0% 14.4% 19.9% Average EITC Received $2,595 $2,438 $2,287 $2,211 $2,359 EITC Returns Prepared By Volunteer 3.5% 2.7% 2.4% 1.5% 2.6% EITC Returns Prepared by Paid Preparer 71.5% 72.7% 74.8% 67.5% 57.1% EITC Refunds Received through Direct Deposit 86.1% 83.9% 73.5% 77.2% 82.8% EMPLOYMENT AND BUSINESS OWNERSHIP Labor Force Participation Rate 63.1% 66.0% 64.8% 66.2% 63.7% White 59.5% 64.5% 64.5% 64.9% 63.1% Black or African American 59.8% 64.2% 63.2% 64.6% 61.9% American Indian and Alaska Native % 64.2% 58.5% Asian 53.5% 67.8% 65.2% 68.6% 65.2% Hispanic or Latino 69.2% 70.7% 66.5% 70.5% 67.3% Unemployment Rate 19.0% 13.8% 8.8% 9.1% 8.4% White 4.0% 7.4% 6.7% 7.7% 6.8% 5 Black or African American 25.5% 20.0% 14.3% 15.5% 15.2% American Indian and Alaska Native % 15.4% 14.8% Asian - 4.9% 6.9% 6.1% 6.5% Hispanic or Latino 16.8% 14.9% 10.8% 10.1% 10.0% Average Annual Pay - $63,166 $68,513 $59,467 $49,808 Self-Employed Workers 5.5% 8.2% 9.9% 8.7% 9.7% Microenterprise Ownership Rate % 21.2% 16.4% 17.3% Vehicle Non-Availability by Working Household 30.2% 15.1% 25.2% 7.3% 5.2% HOUSING AND HOMEOWNERSHIP Homeownership Rate 22.1% 45.3% 51.8% 64.9% 64.0% White 32.7% 69.4% 66.7% 77.0% 71.5% Black or African American 21.6% 29.2% 32.0% 40.4% 42.7% American Indian and Alaska Native 34.7% 32.8% 36.3% 47.7% 53.9% Asian 16.6% 67.6% 50.2% 61.5% 57.5% Hispanic or Latino 18.7% 28.0% 26.3% 35.6% 45.8% Cost Burdened Renters 58.8% 57.0% 54.4% 54.2% 52.3% Cost Burdened Owners 68.0% 49.4% 46.9% 44.0% 34.2% Affordability of Homes indicates that no data is available For more information and data, visit FamilyAssetsCount.org. PUBLISHED OCTOBER

6 EDUCATIONAL ATTAINMENT Less than High School 29.0% 16.3% 14.9% 11.7% 13.7% High School Degree or Higher 71.0% 83.7% 85.1% 88.3% 86.3% White 64.4% 91.1% 93.1% 92.8% 91.4% Black or African American 80.3% 83.8% 82.7% 85.6% 83.1% American Indian and Alaska Native % 72.8% 78.5% 79.1% Asian 85.4% 94.1% 82.3% 92.0% 85.7% Hispanic or Latino 59.0% 66.7% 67.5% 71.0% 64.0% Associate's Degree or Some College 23.0% 22.7% 22.3% 23.2% 29.1% Bachelor's Degree or Higher 13.0% 32.1% 36.8% 36.1% 29.1% White 18.1% 51.8% 46.0% 39.7% 32.5% Black or African American 12.2% 17.7% 22.2% 21.3% 18.8% American Indian and Alaska Native % 17.8% 20.1% 13.5% Asian 55.5% 68.5% 52.9% 68.1% 50.7% Hispanic or Latino 9.4% 14.6% 16.5% 16.1% 13.7% Graduate or Professional Degree 4.1% 12.9% 15.2% 13.7% 10.9% ASSET POVERTY Asset Poverty Rate 52.3% 34.9% 26.6% 24.2% 25.4% Renter 65.0% 59.0% Homeowner 9.8% 6.1% White 34.7% 14.5% Black or African American 55.7% 49.7% American Indian and Alaska Native % Asian % Hispanic or Latino 54.8% 48.0% Less Than High School 62.9% 59.2% High School Diploma 55.8% 44.7% Some College 49.3% 38.4% Bachelor's Degree 31.6% 15.9% Advanced Degree 22.8% 9.3% Age < % 51.5% 35 <= Age <= % 37.5% 45 <= Age <= % 31.4% 55 <= Age <= % 26.5% Married 36.2% 17.5% w/kids 57.4% 37.3% Single Parent 66.0% 57.3% HH Income < $25k 71.2% 64.3% $25k <= HH Income < $50k 53.1% 45.4% $50k <= HH Income < $75k 40.9% 32.6% $75k <= HH Income < $100k 32.5% 21.7% HH Income > $100k 16.6% 6.9% Below Poverty Line (Income) 74.7% 70.0% Above Poverty Line (Income) 44.9% 29.0% - indicates that no data is available 6 PUBLISHED OCTOBER 2015 For more information and data, visit FamilyAssetsCount.org.

7 BE PART OF THE SOLUTION Although significant work is being done to address financial insecurity in our community, there is still more to accomplish. Over the next few months, the City of Newark, United Way of Essex and West Hudson, Citi Community Development and other stakeholders will be working with several neighborhoods in Newark, engaging and empowering individuals to build their own financial security through free workshops and financial literacy programs. If you would like to join us in this effort or would like us to bring a free financial literacy workshop to a community near you, please contact Catherine Wilson at United Way of Essex and West Hudson (cwilson@uwewh.org). 7 For more information and data, visit FamilyAssetsCount.org. PUBLISHED OCTOBER

8 DATA MEASURES & SOURCES Data Measure Measure Description Source Population Demographics Total Households Total Population Population with Disability U.S. Citizenship Rate Speak English Less Than "Very Well" Total number of households Total population Percentage of population living with a disability Percentage of population that are U.S. citizens Percentage of population that speaks English less than "very well" Asset Poverty Percentage of households without sufficient net worth to subsist at the poverty level for three months in the absence of income 2014 Assets & Opportunity Scorecard, Census Bureau, of Income and Program Participation (SIPP), 2008 Panel, Wave 10, for US and States (excluding AK, DC, SD, WY). Local Estimates: Estimates at smaller geographies are derived from CFED s statistical modeling process using the SIPP and American Community data. The figures are geographic estimates and are not meant to directly reflect the SIPP data. Liquid Asset Poverty Percentage of households without sufficient liquid assets to subsist at the poverty level for three months in the absence of income 2014 Assets & Opportunity Scorecard, Census Bureau, of Income and Program Participation (SIPP), 2008 Panel, Wave 10, for US and States (excluding AK, DC, SD, WY). Local Estimates: Estimates at smaller geographies are derived from CFED s statistical modeling process using the SIPP and American Community data. The figures are geographic estimates and are not meant to directly reflect the SIPP data. Household Finances Households with Zero Net Worth Median Household Income Income Poverty Rate Percentage of households that have zero or negative net worth Median household income in the past 12 months Percentage of all families with income in the past 12 months below the federal poverty threshold 2014 Assets & Opportunity Scorecard, Census Bureau, of Income and Program Participation (SIPP), 2008 Panel, Wave 10, for US and States (excluding AK, DC, SD, WY). Local Estimates: Estimates at smaller geographies are derived from CFED s statistical modeling process using the SIPP and American Community data. The figures are geographic estimates and are not meant to directly reflect the SIPP data. Unbanked Households Percentage of households lacking both a checking and savings account 2013 FDIC National of Unbanked and Underbanked Households, for US, States, DC and 71 largest MSAs. Local Estimates: Estimates at smaller geographies are derived from CFED s statistical modeling process using the FDIC and American Community data. The figures are geographic estimates and are not meant to directly reflect the FDIC data. Underbanked Households Percentage of households that have a checking or savings account but have used non-bank money orders, non-bank check-cashing services, payday loans, rent-to-own agreements, or pawn shops at least once or twice a year or refund anticipation loans at least once in the past five years 2013 FDIC National of Unbanked and Underbanked Households, for US, States, DC and 71 largest MSAs. Local Estimates: Estimates at smaller geographies are derived from CFED s statistical modeling process using the FDIC and American Community data. The figures are geographic estimates and are not meant to directly reflect the FDIC data. Average Credit Card Debt Average amount of revolving debt (including debt from credit cards, private label cards and lines of credit) per revolving borrower TransUnion (Q3 2014) Average Installment Debt Average amount of installment debt per installment borrower TransUnion (Q3 2014) Borrowers 90+ days overdue Percentage of borrowers who are 90 days or more past due on any debt payments TransUnion (Q3 2014) 8 PUBLISHED OCTOBER 2015 For more information and data, visit FamilyAssetsCount.org.

9 DATA MEASURES & SOURCES Data Measure Measure Description Source Households Receiving SNAP Benefits Percentage of households that have received SNAP (Supplemental Nutrition Assistance Program) benefits in the past 12 months Use of Services Employment & Business Ownership Housing & Homeownership Educational Attainment 9 Households Receiving Public Assistance Households Receiving SSI Total Tax Filers Receiving EITC Percentage of households that have received Public Assistance income in the past 12 months Percentage of households that have received SSI (Supplemental Security Income) in the past 12 months Percentage of tax filers that received an EITC (Earned Income Tax Credit) Brookings Institute analysis of 2012 tax filing data Average EITC Received Average credit received, in dollars, by tax filers who received an EITC Brookings Institute analysis of 2012 tax filing data EITC Returns Prepared By Volunteer EITC Returns Prepared by Paid Preparer EITC Refunds Received through Direct Deposit Labor Force Participation Rate Unemployment Rate Average Annual Pay Self-Employed Workers Microenterprise Ownership Rate Vehicle Non-Availability by Working Household Homeownership Rate Cost Burdened Renters Cost Burdened Owners Affordability of Homes Less than High School High School Degree Associate's Degree Bachelor's Degree Graduate or Professional Degree Percentage of tax returns that received an EITC that were prepared by a volunteer Percentage of tax returns that received an EITC that were prepared by a paid preparer Percentage of EITC refunds received through direct deposit Percentage of civilian labor force who are employed or unemployed but actively searching for employment Percentage of civilian labor force who are unemployed but actively searching for employment Average annual pay for all workers covered by unemployment insurance Percentage of workers 16 years and over who are self-employed Number of firms with 0-4 employees (non-employer firms plus establishments with 1-4 employees), per 100 people in the labor force Percentage of households (with at least one worker) lacking access to a vehicle Percentage of occupied housing units that are owner occupied Percentage of renter-occupied units spending 30% or more of household income on rent and utilities Percentage of mortgaged owners spending 30% or more of household income on selected monthly owner costs Median housing value divided by median household income Percentage of population 25 and older who have not completed high school Percentage of population 25 and older who have a high school degree, GED or alternative degree only Percentage of population 25 and older who have an associate's (2 year college) degree or some college Percentage of population 25 and older who have at least a bachelor's (4 year college) degree Percentage of population 25 and older who have a graduate or professional degree Brookings Institute analysis of 2012 tax filing data Brookings Institute analysis of 2012 tax filing data Brookings Institute analysis of 2012 tax filing data U.S. Census Bureau, 2013 American Community U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (2010) CFED calculation based on U.S. Census Bureau, Nonemployer Statistics (2008), County Business Patterns (2008), and Current Population (2008); U.S. Bureau of Labor Statistics, Local Area Unemployment Statistics (2008) CFED calculation based on U.S. Census Bureau, American Community data Family Assets Count is a national project of CFED and Citi Community Development, empowering decision-makers and advocates expanding financial security for vulnerable families in major cities across the US. By providing local data tools and convening key stakeholders, Family Assets Count helps promote the public dialogue and partnerships necessary to advance data-driven municipal solutions to household economic security. For more information and data, visit FamilyAssetsCount.org. PUBLISHED OCTOBER