How Income Volatility Interacts With American Families’ Financial Security

Many American families experience significant shifts in income from one year to the next. These shifts, known as income volatility, make it difficult for families to balance paying expenses and planning for the future. This report from The Pew Charitable Trusts analyzes the differences between families that experienced income volatility and those that did not. The researchers found that more than a third of American families experienced a large year-to-year change in income, but Hispanic families and families without a high school diploma were more likely to experience income volatility.