Poverty in America: Millions of families too broke for bank accounts

Sabino Fuentes-Sanchez hid $25,000 all around his house because he didn't trust banks. Lasonia Christon receives her Wal-Mart salary on a pre-paid debit card. Kim James was homeless for most of the past decade in part because she had no place to save money.

There are plenty of reasons people still live all-cash lives, but the sheer number who do it might surprise you. At a time when the majority of Americans use online banking, and some even deposit checks using their cellphone cameras, roughly eight percent of America's 115 million households don’t have a checking or savings account, according to census data compiled by the FDIC.

The numbers are far higher among minorities: More than 20 percent of African-Americans and Hispanics are essentially left out of the American banking system.

Frozen in the cash-only past, they face myriad “kick-them-while-they-are-down” situations where getting money costs money. Banks typically charge $6 to cash checks. Want to secure an apartment? Fee-based money orders are the only option. Without credit cards, they must turn to triple-digit interest rate payday loans for emergencies. Read more >>

USDA Ad Campaign Urges People to Get On Food Stamps

More than one in seven Americans are on food stamps, but the federal government wants even more people to sign up for the safety net program. The U.S. Department of Agriculture has been running radio ads for the past four months encouraging those eligible to enroll. The campaign is targeted at the elderly, working poor, the unemployed and Hispanics.

The department is spending between $2.5 million and $3 million on paid spots, and free public service announcements are also airing. The campaign can be heard in California, Texas, North Carolina, South Carolina, Ohio, and the New York metro area. "Research has shown that many people -- particularly underserved seniors, working poor, and legal immigrants -- do not understand the requirements of the program," said Kevin Concannon, a USDA under secretary.

The radio ads, which run through June 30, come amid a bitter partisan fight over the safety net program. Republican lawmakers want to reduce funding for the benefit or turn it into a block grant program, which would also minimize the cost. Democrats, however, are not willing to make major cuts. The issue has become so heated that Newt Gingrich called President Obama the "food stamp president" to show how he's increased government spending. Read more >>