7.2 Financial Resources

LO 7.2: Explain how financial resources relate to social class.

Sociology has long focused on income and wealth in understanding economic inequality. Today, however, a person’s economic position also includes financial resources, such as credit (or the ability to borrow money), and financial liabilities, including debt (or the amount of money owed) (Dwyer, 2018). Like income and wealth, credit and debt open opportunities and create barriers (Dwyer, 2018). For example, a family with a high credit score can secure a loan to buy a house with a lower interest rate than a family with a low credit score. Differences in credit scores are associated with differences in income, wealth, and debt. Those with more financial resources are advantaged and given access to loans on better terms.