Kinder Institute Releases Study on Financial Security, Budgeting and Savings Habits of Houstonians

Rice University’s Kinder Institute for Urban Research has recently released a study exploring the budgeting and savings habits of Houstonians and their relationship to financial security. 

According to the report, two-thirds of residents in Harris County struggle with financial security, which is defined as the ability to cover daily expenses and withstand economic shocks for at least 3 months using only what is in a person’s savings. Not only did this percentage fluctuate across different areas in the Houston region, but it also differed across several socioeconomic factors, including race/ethnicity and income. 

Despite 64% of respondents having regular savings practices – and the direct correlation identified by researchers between savings and financial security – the majority of area residents still feel financially vulnerable. Factors most often cited as barriers for saving included emergency expenses, housing costs, medical expenses, credit card debt, and nonessential spending. 

When it came to money management, two-thirds of Harris County residents reported having a budget, but for those who did not, the most commonly cited barriers included feeling like they did not make enough money to need a budget and not knowing where or how to start. 

“Financial security is a critical determinant of health, education and overall well-being, yet the research highlights a substantial gap in residents’ ability to build the safety net required for resilience and prosperity.” – Dan Potter, Director of the Kinder Institute’s Houston Population Research Center 

Data collected in the Kinder Institute study echoes earlier findings from its 2024 Kinder Houston Area Survey, which found that 46% of Harris County residents were unable to make a $400 emergency payment to cover an unexpected expense. While this increase can partially be attributed to the end of economic programs and services related to the COVID-19 pandemic, it is indicative of a larger, more widespread issue in Harris County and beyond. 

According to UnitedForALICE, 47% of all households in Harris County are experiencing financial hardship, a disturbing trend that extends to the whole of Texas: the percentage of ALICE (Asset Limited, Income Constrained, Employed) households in the state has held steady at over 40% since 2010. 

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The Women’s Resource is committed to providing free financial education classes and resources to support those in our community experiencing financial distress. We believe that inspiring positive financial change not only improves financial health, but also overall individual and family well-being. 

Don’t know where to start with budgeting or saving? Sign up for our YourLife Finance Class Series, offered in English and Spanish, or watch our classes on-demand. 

If you feel like you need more personalized, one-on-one support to meet your financial goals, contact one of our financial coaches.