One major side effect of COVID-19 is financial stress, and according to a recent study, bakersfield is one of the most financially stressed cities in the country.
The group SmartAsset ranked Bakersfield the thirteenth most financially stressed city in the U.S. It actually ranks above Los Angeles and Dallas.
Local financial advisors spoke about the reason behind these burdens, and how families and small businesses can exercise healthy money habits during this time.
STRESS, AND ACCORDING TO ARECENT STUDY, BAKERSFIELD ISONE OF THE MOST FINANCIALLYSTRESSED CITIES IN THE COUNTRY.23ABC'S KRISTINVARTAN JOINS US LIVE FROMNORTHWEST BAKERSFIELD TOEXPLAIN.YES JESSICA, THE GROUP SMARTASSET RANKED BAKERSFIELD THETHIRTEENTH MOST FINANCIALLYSTRESSED CITY IN THE U.S. ITACTUALLY RANKS ABOVE LOS ANGELESAND DALLAS.I SPOKE WITH A LOCAL FINANCIALADVISORS ON WHAT'S CAUSINGTHESE BURDENS, AND HOW FAMILIESAND SMALLBUSINESSES CAN EXERCISE HEALTHYMONEY HABITS DURINGTHIS TIME.KERN COUNTY IS RICH IN SMALLBUSINESSES, AND AS A RESULT MANYFAMILIES DEPEND ON THESEBUSINESSES OPERATING TOMAKE ENDS MEET.A RECENT STUDY FROM THE GROUP,SMART ASSET FOUND THATBAKERSFIELD IS THE 13TH MOSTFINANCIALLY STRESSED CITY INTHE U-S.TAKE SOT:DENISE WINSTONFOUNDER AND CEO, MONEY STARTSHERE"UNFORTUNATELY IT'S NOTSURPRISING BECAUSE NOT ADAY GOES BY WHERE YOU DON'T USESOMETHING OR EXPERIENCESOMETHING OR TOUCH SOMETHINGTHAT DOESN'T HAVE TODO WITH MONEY."DENISE WINSTON FOUNDED MONEYSTARTS HERE IN BAKERSFIELD 11YEARS AGO AFTER GROWING UP INKERN COUNTY AND WORKED (WORKS?)AS A BANKER FOR 25 YEARS.SHE'S SEEN FIRSTHAND HOW THEGOLDEN EMPIRE'S PRIMEASSETS, LIKE OIL ANDAGRICULTURE, COULD ALSO LEADTO ITS DOWNFALL.SOT:"THERE'S A VOLATILITY THERE ANDTHERE ALWAYS HASBEEN.
IN SOME OF THOSEENVIRONMENTS AND SOME OFTHOSE JOBS, YOU CAN ACTUALLYMAKE A LOT OF MONEY, BUT WHENTHERE'S CUTS YOU DON'T HAVEMONEY."AND WHEN MONEY IS CUT, SO IS THEPAY OF MANY OF EMPLOYEESWORKING IN OUR COUNTY IN THOSEINDUSTRIES.
THE STATE NOTESTHAT BAKERSFIELD CURRENTLY HASAN 16.5 PERCENTUNEMPLOYMENT RATE.THE MLK COMMUNITY INITIATIVE INPARTNERSHIPWITH BANK OF AMERICA IS HOSTINGAN EIGHT WEEK COURSE ONHOW TO MANAGE FINANCIAL STRESS.SHE POWER GLOBALAMBASSADOR, ARLEANA WALLER SAYSTHAT IT'S IMPORTANT TOCLOSELY MONITOR THE MONEY AREMAKING AND SPENDING.TAKE SOT:ARLEANA WALLERGLOBAL AMBASSADOR, SHEPOWER"MOST AMERICANS DON'T EVEN HAVE500 DOLLARS IN THEIR SAVINGS,SO IF AN EMERGENCY WAS TO COMEUP, THEY CAN'T REALLYSAVE THEMSELVES, ESPECIALLYDURING COVID-19,WE REALLY SEE THAT.
SO FOR ANEXAMPLE, IF YOU DRIVE LONGDISTANCE, SAVE FOR A TIRE.
THATMAY BE $20 EVERY PAYCHECK."WALLER SAYS THAT DURINGUNCERTAIN TIMES, IT'S ESPECIALLYIMPORTANT TO PLAN FOR UNFORESEENEMERGENCIES.
TAKE SOT:PUTTING A LITTLE BIT ASIDE,WHETHER THAT'S IN A SAVINGSACCOUNT, OR IN AN ENVELOPE.
ANDREALLY THE ULTIMATE GOAL ISTO HAVE A MINIMUM OF THREEMONTHS OF LIVING SAVED ASIDE INCASE OF AN EMERGENCY.
AND YOU'REIF YOU HAVE A FAMILY OF THREE ORFOUR, YOU WANT TO HAVE AT LEASTSIXMONTHS OF SAVINGS.
I KNOW THATSOUNDS HARD, BUT IF YOU DO ALITTLE BIT AT A TIME IT'SPOSSIBLE.IF YOU ARE INTERESTED IN THE MLKCOMMUNITYINITIATIVE AND BANK OF AMERICA'SFINANCIAL STRESSCOURSE, YOU CAN FIND MOREINFORMATION ON OUR WEBSITE.
THECOURSE IS THREE WEEKS IN, BUTWALLER SAYS YOU CAN JUMPRIGHT IN!FOR NOW, I'M KRISTIN VARTAN FROM23ABC CONNECTING YOU.