In striving to reach people with “low wealth,” REAL Solutions® targets a broader audience than efforts focused solely on “low income.” Research shows that low-wealth markets include not only low-income consumers, but also those with moderate and middle incomes who are unable to save any of their paychecks. They also include consumers of all ages and all ethnic groups.
According to the Survey of Consumer Finances, 80 percent of U.S. households hold just 15% of net worth. If you exclude home equity and only consider financial wealth, the percentage drops to just 9 percent. The top five percent of U.S. households hold 59 percent of net worth.
The good news is that there are a lot of low-wealth households that can benefit from the better-valued products offered by credit unions. There is no need to fight over the top 10 percent when 80 percent are needy.