We know government can save money by funding services for poor patients so they don't end up in the emergency room, where health care is more expensive. New research suggests a surprising area where a similar cost-cutting strategy could work: household finance.
For instance, nearly two-thirds of New York’s 3.1 million households have fewer than $2,000 in liquid savings, according to research (PDF) published this month by the Urban Institute. That puts those New Yorkers one financial shock away from eviction, which would cost the city thousands of dollars for homeless services, unpaid utilities, and uncollected property taxes. Add up those expenses, the Urban Institute researchers suggest, and New York is facing a potential annual cost from $280 million to $646 million.
