Priced out: Climate Change incentives and programs prove out of reach for people living on low-to-moderate incomes
Photography by John Schlia
With support from the Wells Fargo Foundation, 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. This is the first SaverLife member story from this study. Additional funding and support for our New York efforts was provided by Deutsche Bank
José can name a variety of incentives and programs that help homeowners like him prepare for climate change. But when it comes to actually taking advantage of these initiatives, he’s priced out. Investing in a back-up generator or installing energy-efficient appliances is financially out of reach for him right now. And to José, that’s exactly the problem. Climate change programs and incentives tend not to reflect the financial realities and needs of people living on low-to-moderate incomes.
“Living with limited income is such a delicate balance,” he explains. “I wish that policymakers would recognize and account for that.”
As a nonprofit and advocacy organization using technology to improve the financial health of people living on low-to-moderate incomes, SaverLife collaborates with members like José to amplify their personal stories and experiences. We are committed to making sure our members are seen and heard, and that they have the opportunity to influence the financial programs and services that impact their lives.
And in the case of climate change, our desired outcome is no different. We want climate initiatives to prioritize the needs and realities of people living on low-to-moderate incomes. They need access to the resources that will help them achieve financial well-being and feel financially prepared for the current and future impacts of climate change.
“I keep wondering how other people are doing it,” José describes. “Is everyone going through what I'm going through?” Without climate initiatives that prioritize the lived experiences of individuals living on low-to-moderate incomes, people like José are left to navigate financial stability and the changing climate on their own — and potentially making difficult trade-offs in the process.
Striking a balance — an exhausting pursuit
José is a born and bred New Yorker who’s lived in his home for over 20 years. In early 2003, he learned that his landlord was looking to sell the rental that he was living in, so he decided to make him an offer on the home. To José’s surprise and delight, the landlord accepted. “I knew I’d be dumb not to take it,” he says. José has spent the last two decades creating a comfortable space for him and his dog, Foxy.
José is retired and he’s finding that he lives paycheck to paycheck more often than when he was working. To mitigate the impacts of this on his budget, he spends his free time searching for opportunities to save money and bring in extra income. “I take part in a lot of product trials and surveys, where I can make a small amount of money and put it away for a rainy day,” he explains. José also resells items on platforms like Facebook Marketplace, although he’s recently taken a step back from these activities after being robbed during a sale.
“It’s tough sometimes because I feel like I’m always trying to juggle things to make my income work with the expenses I have. I usually exhaust all my income by the end of the month, so I have to be really careful with my money.”
That’s a word José uses often when describing his financial situation: exhausting. He sees his process of staying on top of bills as constant “strategizing” — with no opportunity to relax. To José, financial health would be not having to choose between financial stability and making progress on his long-term savings goals. It would also mean not feeling guilty about spending money on himself: “You really second guess everything that you do,” José explains. “You’re constantly trying to decide what’s important and what you can go without.”
José navigates his feelings of frustration and anxiety by keeping a close eye on his budget and completing thorough research to make sure he’s getting the best prices possible. He’s proud of the deals he finds, and acknowledges that his proactive financial planning makes him feel more optimistic about the future. “I just keep chipping away where I can,” he describes.
The costs of climate preparation
With ongoing expenses from medical bills, home repairs, and necessary costs of living like groceries and utilities, José has little opportunity to think about the physical impacts of climate change on his life. Even so, he’s very aware of the potential financial implications, especially when it comes to his house.
José’s insurance company has identified his neighborhood as a risk area for flooding. But rather than bundle flood coverage into his existing plan, they offer this as an add-on that costs almost the same price as his current homeowner’s insurance. Since he doesn’t have the luxury of purchasing additional insurance without disrupting his already fragile budget, José simply hopes that his neighborhood won’t be impacted by flooding down the line. “I hope and pray that, if my home is damaged by flooding, it’s covered,” he describes. “But right now, I've got enough on my mind. I can’t think about what’s going to happen to my home; I’m just trying to deal with today.”
Even so, as a strategic thinker, José has already thought through how he’ll respond to flooding. But this plan is also met with financial blockers. “I’d like to have a back-up generator in case I lose my power,” he says, “But then again, you have the up-front costs. And I don’t know if I would qualify for any programs that would help me buy one.”
While he’s taken advantage of local services to upgrade his appliances, update ceiling and wall insulation, and replace old light bulbs, José feels that more could be done to help people living on low-to-moderate incomes prepare for and respond to the financial impacts of climate change. And for him, this feels especially true for items that require an up-front investment.
“The generator is almost a necessity,” he explains, speaking to the increase of power outages across states. “I wish there were more programs that would make them affordable to people living on lower incomes — even if it’s just a rebate. That would be extremely helpful.”
Climate preparedness should be a part of conversations around financial well being
From recent media features, we’re beginning to see a shift in thinking about who benefits from climate initiatives and how they receive support. But José’s words still ring true when looking to the intersection of financial health and climate change. The urgency to achieve financial stability drives how people living on low-to-moderate incomes plan for and respond to climate change.
As leaders in the financial health space, we have a responsibility to create financial programs and services that reflect José’s perspective on climate change. Climate change is not happening in a vacuum: it must be considered through the lens of financial health. Otherwise, the millions of individuals like José will cope with the lasting impacts of climate with limited support — and potentially little opportunity of returning to financial stability. “If I were to experience a flood, I can’t even imagine what a nightmare that would be. I would lose everything.”
Stories can change the balance
SaverLife members and their stories have the insight needed to tip the scales toward an equitable financial system. However, if we collectively want to change the balance, the financial and social sectors must tackle narrative change alongside their advocacy efforts. Together, we need to bring the financial system into full view through people’s individual experiences and highlight how it can be transformed to work with — and not against — people living on low-to-moderate incomes.
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