SmartAsset, a personal‑finance research firm, examined the U.S. Census Bureau’s 2024 data and estimated that 15.7% of Tennessee households had a net worth of zero or less. That translates to roughly one in six families whose assets – such as homes, vehicles and savings – did not exceed their debts, including mortgages and other loans.
How the estimate was calculated
The firm used the Census Bureau’s household‑finance survey, which samples a cross‑section of households rather than counting every residence. Because the numbers are derived from a survey, SmartAsset provided a 90% confidence interval ranging from 10.9% to 20.5%, with the 15.7% figure serving as the midpoint.
Comparison to the nation
Nationally, the same analysis placed the share of households with zero or negative net worth at 11.3%. While the study could not rule out sampling variation as the cause of the difference, the Tennessee figure remains higher than the overall U.S. estimate.
What zero or negative net worth means
Net worth is calculated by subtracting total debts from total assets. For example, a family with $50,000 in assets and $60,000 in debt would have a net worth of negative $10,000. This does not automatically indicate that a household has no income, no cash on hand, or that it is unable to meet its regular bills. It simply reflects that, on paper, liabilities exceed assets.
Related poverty measures
A separate analysis by United Way, previously reported by WSMV, found that 41% of Tennessee households fell below the organization’s basic‑needs income threshold in 2024. That metric looks at income relative to a budget for essential expenses, not at net worth, and therefore captures a broader segment of financially vulnerable families.
Local variations
Within Davidson County, two ZIP codes showed especially high shares of households below the basic‑needs threshold: 59% in 37210 (part of South Nashville) and 56% in 37115 (including Madison). While these figures address income rather than net worth, they illustrate the economic challenges faced by many residents in specific neighborhoods.
Implications for families
For families with little or negative net worth, building financial resilience often means focusing on debt reduction, increasing savings, and protecting assets such as a primary residence. Community organizations, faith‑based groups, and local charities continue to offer budgeting workshops, emergency assistance, and financial counseling to help households improve their financial footing.
Looking ahead
The Census Bureau plans to release updated household‑finance data in mid‑2027, which will allow analysts to track whether the share of Tennessee households with zero or negative net worth changes over time. Until then, the current estimate provides a snapshot of the state’s financial health and underscores the importance of continued support for families striving for economic stability.
Original reporting: Action News 5 WMC (Gray) — read the source article.
