Spikes and Dips: How Income Uncertainty Affects Households
New financial services cannot increase household incomes. However, there is tremendous potential for high-quality financial services to help households achieve greater financial health and better manage income uncertainty. In this research note, we explore the concept of uncertain incomes through the stories of two households: the Garzas and the Taylors (names and details have been changed to protect the anonymity of the participants). Both households use a variety of financial instruments and other strategies to manage uncertainty in their incomes.