"most Americans can& #39;t pay a $400 expense" is commonly quoted (particularly in pitch decks!) but NOT TRUE.

The media went crazy misinterpreting a study from the Fed.

It came from the stat "only 60% of Americans would pay an unexpected $400 expense with cash equivalent." https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧵" title="Thread" aria-label="Emoji: Thread">https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">

Another 28% of Americans would put it on a credit card that they pay back over time, or borrow money from a friend, or sell something to cover it. It& #39;s not that they *can& #39;t pay.*

Only 12% of Americans could not cover an unexpected $400 emergency expense in any way.

Further, 76% of American households have at least $400 in liquid assets -- it& #39;s just that a portion of them, even though they have the cash, would still choose a non-cash way of paying for an emergency $400 expense (presumably so they can keep the cash available to them.)

this is the graph that caused all the confusion https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤦‍♀️" title="Frau schlägt sich die Hand vors Gesicht" aria-label="Emoji: Frau schlägt sich die Hand vors Gesicht">

you gotta read the study: https://www.federalreserve.gov/publications/files/2018-report-economic-well-being-us-households-201905.pdf">https://www.federalreserve.gov/publicati...

basically if you& #39;re pitching me a lending startup because 40% of Americans "can& #39;t" cover a $400 expense, you& #39;re actually just competing to be one of the options that Americans could use to cover a $400 expense and perpetuating the hardship they face to do so