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Public transit and financial health
This report sheds light on the complex relationship between public transit usage and financial well-being.
About the project
Public transportation is often seen as a cost-effective alternative to driving, yet for many low-to-moderate income households, it remains underutilized. SaverLife and the FINRA Investor Education Foundation’s second brief in their transportation research series delves into this paradox, revealing that despite the availability and affordability of public transit, many individuals opt for private vehicles due to factors beyond just fare costs. Issues such as convenience, commute times, and reliability play significant roles in transportation choices.
How transportation costs affect financial health
This report sheds light on the complex relationship between public transit usage and financial well-being. It is the second installment in a three-part series exploring how transportation costs intersect with financial health for low-to-moderate income households.
What we found: Key finding
This is the second in a three-part research series examining the intersection of transportation costs and financial health.
About the data
SaverLife emailed or texted 3,442 members of the SaverLife panel and asked them to complete an online survey with 79 questions about their transportation costs, financial health and circumstances, demographics, and other variables. A total of 1,212 survey responses were collected between August and September 2022. Participants were compensated $10 for participating in this study. While study participants are not representative of the overall U.S population, they are representative of SaverLife’s members, who tend to live on low-to-moderate incomes.
Demographic data collected through SaverLife’s member panel indicated over half of survey participants (52%) earned an annual household income of $35,000 or less, 40% were ages 18–34, 47% were ages 35–54, and 8% were 55 or older. A large majority identified as female (77%). Half of the survey participants identified as white, 32% as Black or African American, and 8% as Hispanic or Latino. Sixty-two percent reported having financially dependent children.
The survey instrument was informed by qualitative interviews with SaverLife panel members conducted from January to April 2022. Participants were drawn from a pool of 2,500 SaverLife members that represented the member panel in terms of demographics and geographic location. A total of 15 members completed interviews on their experiences with transportation expenses and financial health. Interviewees received $25 for their participation.
SaverLife member panel
SaverLife maintains a member panel of over 5,000 SaverLife members who are engaged in the SaverLife platform and are representative of SaverLife members in terms of age, gender, race/ethnicity and income. Member panelists live in all 50 states and the District of Columbia, and they experience financial challenges that are representative of those that low-to-moderate income working U.S adults face. Panelists make 80% or less of area median income, earning a median annual income between $25,000 and $35,000. The vast majority of panelists are women and people of color. A majority are above the age of 24, with 85% of members being between the ages of 25 to 54. These individuals are recruited via an open call within SaverLife marketing materials (a biweekly SaverLife member newsletter) inviting members to participate in research activities that can result in up to $20 per month in compensation. It is important to note that the SaverLife member base differs from the general United States population in several respects: They are more likely to earn lower incomes, be a person of color, and have children.
A note on key definitions
Transportation costs/expenses: For this study, unless otherwise noted, “transportation costs” include the following self-reported monthly expenses: car loan or lease; gasoline; car insurance; auto maintenance; parking and tolls; public transit; and rideshare fees.
Income (very low, low, moderate): Survey respondents reported their monthly income using several income ranges. We define the following monthly income ranges as: very low ($0 – $1,999;) low ($2,000 – $3,999); moderate ($4,000 – $4,999); and average or higher ($5,000 or more). Unless otherwise noted, findings are based on the full sample. Most respondents (75%) had very low or low monthly incomes. Seven percent reported moderate incomes, and 13% reported average or higher incomes.
Acknowledgement
This research was funded by the FINRA Investor Education Foundation. All results, interpretations, and conclusions expressed are those of the research team alone and do not necessarily represent the views of FINRA, the FINRA Investor Education Foundation or any of its affiliated companies.
