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The Downpour: Navigating Chronic Climate Expenses in Households Living on Low-to-Moderate Incomes
This report explores how low- to moderate-income households are financially impacted by the increasing frequency and severity of extreme weather events.
How does climate change impact the financial health of households living on low-to-moderate incomes?
SaverLife gratefully acknowledges the support of Wells Fargo Foundation for making this research possible. This brief is the first in a two-part series exploring how severe weather driven by climate change impacts the financial health of low- to moderate-income households.
This report explores how low- to moderate-income households are financially impacted by the increasing frequency and severity of extreme weather events—such as heat waves, flooding, wildfires, and poor air quality. Drawing from member surveys and lived experiences, the report reveals that many people face not just one, but multiple climate-driven events each year. These disruptions lead to lost income, higher expenses, and ongoing difficulty accessing disaster relief or recovery resources.
The findings highlight just how unprepared many SaverLife members feel to weather these emergencies: more than half of respondents said they could afford few or none of the costs associated with preparing for severe weather. Renters and parents are especially vulnerable, lacking both the financial buffer and support systems needed to recover. The Downpour calls for inclusive, equity-focused resilience strategies that recognize the unique economic challenges faced by those most exposed to the effects of a changing climate.
The Downpour
SaverLife launched The Downpour, a research initiative intended to expose the ongoing impacts of climate change on the financial health of households living on low-to-moderate incomes. Through qualitative and quantitative data, we bring our members’ experiences to light and determine how well existing policies can mitigate climate change on their behalfs.
What we found: Key findings
While members are concerned about weather events and disasters, there’s little room in their already tight budgets to prepare for them. Our research shows that 24% of members don’t have enough money to meet their basic expenses, while 32% just meet their basic expenses and 30% meet their basic expenses with a little left over. By comparison, only 11% of SaverLife members say they can afford all of the costs associated with preparing for a severe weather event, while 54% say they can afford none of just a few of the costs.
For the 55% of SaverLife members who identify as parents, our research shows that they are 53% more likely to say that they can’t meet their basic expenses on a regular basis. Parents are also 57% more likely to say that they can’t afford any of the costs associated with preparing for severe weather, and they’re 32% more likely to experience a loss of income when dealing with the effects of weather-related disasters.
When a severe weather event occurs, renters are more likely than homeowners to experience negative impacts on their financial health. Nearly one-third of renters have missed payments on monthly household bills, while 25% have experienced a loss of income and wages. And because renters have limited control over the changes that are made to their house or apartment, they must rely on their landlords to ensure their home can withstand severe weather. With renters already experiencing increased financial vulnerability, their landlords must step up to better support their tenants in preparing for and responding to climate-related events.
SaverLife members are interested in pursuing opportunities and strategies that will proactively address the chronic climate impacts they’re experiencing. But climate-related policies, products, and services currently aren’t designed with people living on low-to-moderate incomes in mind. At least 40% of SaverLife members are interested in electric vehicles, solar panels, home weatherization, and a more efficient heating system, air conditioner, and hot water heater. But the up-front costs associated with these products pose a major challenge to people who are already maintaining a tight budget.
Climate change is a reality that SaverLife members recognize is already affecting their lives. But the ways in which they approach its long-term impacts matters just as much as their capacity to financially cope with its immediate effects. To maintain resilience in the face of a shifting climate, SaverLife members require preparation strategies, products, and services that reflect their lived experiences, especially when it comes to their financial health and stability.
Member Stories: Climate Resilience
We spoke with three SaverLife members to learn more about the ways they navigate severe weather and weather-related events caused by climate change. Hear from Megan, José and Alizha about their experiences with the chronic impacts of climate change.
