Weathering Volatility 2.0: A Monthly Stress Test to Guide Savings
Author: Chenxi Yu, Diana Farrell, Fiona Greig
Topic: Financial well-being
Publisher: J.P. Morgan Chase Institute
Location: United States
Format: Report
Content Type: Research
Publication Date: October 14, 2019

In this report, the JPMorgan Chase Institute uses administrative bank account data to measure income and spending volatility and the minimum levels of cash buffer families need to weather adverse income and spending shocks.

Inconsistent or unpredictable swings in families’ income and expenses make it difficult to plan spending, pay down debt, or determine how much to save. Managing these swings, or volatility, is increasingly acknowledged as an important component of American families’ financial security. This report makes further progress toward understanding how volatility affects families and what levels of cash buffer they need to weather adverse income and spending shocks. 

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