Press Release: CSS Report: Navigating Financial Insecurity: Low-Income New Yorkers’ Financial Strategies and Experiences

Press Release

CSS Report: Navigating Financial Insecurity: Low-Income New Yorkers' Financial Strategies and Experiences

New Study Challenges Assumptions, Finding Low-Income New Yorkers Make Resourceful Decisions in the Face of Economic and Systemic

As the cost of living continues to strain household budgets, a new study from the Community Service Society of New York (CSS) sheds light on how low-income New Yorkers manage financial insecurity, cope with unexpected expenses, and navigate a complex web of financial institutions, public benefits, and community resources.

CSS's 2025 Annual Survey of Housing and Economic Security found that 60 percent of low-income New Yorkers say they cannot make ends meet or are barely getting by. More than half lack emergency savings, and a similar share report they could not or probably could not cover a $400 emergency expense. Three quarters are not saving for retirement.

To better understand how low-income New Yorkers navigate these circumstances, CSS conducted an exploratory qualitative study involving six focus groups with 41 city residents. Participants shared how they manage limited resources, make financial decisions, and navigate barriers to financial stability.

"I feel like every day the prices for living-housing, eating, everything-is just going up. So, if prices are going up and minimum wage is not going up, how can we be financially stable? Even if you're doing everything that you need to do."
- Study participant

"Every day, my office works with New Yorkers who are trying to make ends meet and also trying to navigate complicated systems to get the benefits and services they qualify for," said Council Member Gale A. Brewer. "Government has a responsibility to make those systems work better. Someone who loses a job, faces a rent increase, or has an unexpected medical expense should not also have to fight through unnecessary paperwork and confusing eligibility rules to get help. CSS understands this firsthand. Their staff does an excellent job helping New Yorkers navigate these systems, and this report shows why that work is so important. We need to make benefits easier to navigate and invest in the community organizations that people trust to guide them through these systems."

"New Yorkers deserve financial systems that are easy to navigate and access to support systems to help them better understand benefits and services they qualify for. It is our job in government to cut through the red tape to get the help they need," noted Council Member Harvey Epstein. "The report by CSS shows that struggling to make ends meet is not always due to individual failings but often due to structural problems keeping them behind. I am committed to making these systems easier so that countless New Yorkers get the help they need to thrive, and I am grateful to CSS for being such a strong leader and partner in that fight."

"No one should have to choose between putting food on the table, paying their rent, and preparing for unexpected expenses," said DCWP Commissioner Samuel A.A. Levine. "This report underscores the importance of ensuring that New Yorkers have the protections, resources, and financial tools they need to make informed decisions and build greater financial security. DCWP will continue to work to deliver economic justice for all New Yorkers."

"The experiences shared in this study make clear that financial insecurity is driven not by individual failings, but by structural challenges that make it increasingly difficult for many New Yorkers to achieve stability," said David R. Jones, President and CEO of CSS, "By listening directly to those most affected, policymakers, financial institutions, and service providers can develop solutions that better address the realities families face every day."

"What this research shows is that good financial decisions matter, but they can't make an unaffordable life affordable," said Rachel Swaner, Vice President of Policy, Research, and Advocacy at CSS. "People need an economy and financial system that allow those decisions to pay off."

Key findings from the study include:

• Low-income New Yorkers demonstrate remarkable resourcefulness in managing financial insecurity, making thoughtful and adaptive financial decisions despite extremely limited resources-challenging common assumptions that financial hardship stems from poor financial decision-making.
• Consumers are expected to navigate an increasingly complex financial marketplace, despite opaque products and little proactive guidance from banks and fintech providers.
• The mismatch between incomes and the cost of living is a major barrier to financial security.
• Trusted community organizations serve as essential navigators of financial and public systems.

Many participants described the difficulty of getting ahead despite careful financial planning:

"I try to save the most that I can […], but when you have to dip into your savings and you see the numbers dwindling, that changed my whole mind frame, too, on necessity versus wants."

Participants were wary of the trustworthiness of big banks and fintech services. Several were unsettled that services like Cash App operate outside the regulatory protections of regular banks:

"They're not banks, you know. […] If you read the fine text, they're not responsible for your money."

Participants also offered practical ideas for improving financial well-being. They called for financial education to begin earlier in life, greater access to personalized financial coaching and guidance, expanded opportunities for job training and employment, broader access to affordable financial services such as credit unions, and wages that better reflect the cost of living.

Community-based organizations that assisted with the benefits application process were identified by participants as extremely helpful:

"I actually applied for my programs through […] Fifth Avenue Committee, and they just make applying for assistance with compassion and empathy and humanity. And it's just such a better experience than going, because I've gone to the HRA (Human Resources Administration) office and it's very challenging."

The report makes the following recommendations:

1. Reduce the structural costs-particularly housing and healthcare-that drive financial insecurity.
2. Strengthen consumer protections and increase transparency in the financial marketplace.
3. Invest in trusted community-based organizations that integrate financial guidance, systems navigation, and advocacy.
4. Expand access to asset-building opportunities.
5. Modernize financial education to equip people with the knowledge and critical skills to understand their rights, navigate financial and public systems, and advocate for themselves.

About the Study: Researchers conducted six focus groups in June 2025 with 41 participants recruited through community-based organizations serving low-income New Yorkers. Participants represented a range of ages, racial and ethnic backgrounds, and income levels, and shared their experiences through both in-person and virtual discussions.

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The Community Service Society of New York (CSS) has worked with and for New Yorkers since 1843 to promote economic opportunity and champion an equitable city and state. We power change through a strategic combination of research, services, and advocacy to make New York more livable for people facing economic insecurity. By expanding access to health care, affordable housing, employment opportunities, debt assistance, and more, we make a tangible difference in the lives of millions. Join us at www.cssny.org.

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