assetpoor

Assetpoor is a term used in economics and social policy to describe individuals or households whose assets, or net worth, fall below a level considered sufficient to weather common financial shocks. It is distinct from income poverty, focusing on accumulated resources rather than current income. Asset-poor households may lack liquid savings, investment, or equity in property, making it difficult to cover emergency expenses, debt repayment, or retirement costs.

Measuring asset poverty involves selecting a threshold, which varies by study. Common approaches define asset poverty as holding net assets below a multiple of monthly expenditures, or below a fixed amount equivalent to several months of basic living costs. Some researchers distinguish between liquid assets and illiquid assets; a household may be asset-poor even with home equity if debts exceed the asset value.

Asset poverty is used to assess vulnerability to economic shocks, wealth inequality, and mobility. It informs policy debates on saving incentives, safety nets, and asset-building programs such as matched savings accounts or Individual Development Accounts. Governments and researchers track asset poverty rates using household survey data, such as national censuses or special modules, with the United States, OECD countries, and others providing cross-national comparisons.

Limitations include varying definitions, data quality, and the challenge of comparing asset poverty across contexts. Nevertheless, the concept helps identify households at risk of depleting all resources in a crisis and informs targeted interventions to build resilience and long-term wealth.