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 >>

15% of US households had food shortages in 2009

Almost 15% of US households experienced a food shortage at some point in 2009, a government report has found.

US authorities say that figure is the highest they have seen since they began collecting data in the 1990s, and a slight increase over 2008 levels.

Single mothers are among the hardest hit: About 3.5 million said they were at times unable to put sufficient food on the table.

Hispanics and African Americans also suffer disproportionately.

The food security report is the result of an annual survey conducted by the US Department of Agriculture (USDA).

Households deemed "food insecure" experienced a period of inadequate food supply as a result of their economic situation, but did not necessarily remain without sufficient food for the entire year.

Although the number of food insecure households has risen sharply since the recession, the USDA says the growth rate has slowed, particularly toward the end of 2009.

The BBC's Katie Connolly, in Washington, says the results will be seen as somewhat surprising in a developed country that is also facing the problem of rising obesity rates. More...