Financial stress

Dynamic, resilient local economies
Income and wealth
Percentage of survey respondents who could raisse $2,000 in two days in an emergency

The most common approach to measuring and defining poverty is the low-income approach. It has been suggested that an alternative approach, or one that could be combined with measures of low income in order to improve measurement of economic wellbeing, is to assess poverty and disadvantage by measuring "financial stress". A symptom of financial stress is the inability to raise a moderate sum of money to deal with an emergency of the kind created by the need to pay an unexpected bill (CIV, 2006).

The inability to access funds in an emergency is a form of financial exclusion. You are more likely to experience financial exclusion if you have a low level of education, were born overseas, are unemployed and are aged over 65 or 18-24 years (Connolly, Georgouras, Hems, Wolfson, 2011). Other forms of financial exclusion include the inability to purchase basic levels of insurance cover and access to a transaction account.

Data Source: 
Resilience Profiles Survey 2011
Community Indicators Victoria (CIV) (2007) Metadata, Retrieved from
Survey Questions: 
23. If you needed to, could you raise $2,000 within two days in an emergency?; Yes; No; Don’t know

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