Meet ALICE: 29% of American households who earn above poverty level but don't have enough to make ends meet
Published in Business News
Persistent inflation in recent years has taken a toll on Americans in multiple ways. For instance, according to Bankrate’s money and mental health survey, 65% of people who said their mental health is affected by money cite inflation as a cause.
When prices of goods and services are elevated, nearly everyone feels the effects — including those who earn too much to qualify for government aid, yet not enough to cover all their living expenses. The name for those who fall into this category is ALICE: Asset Limited, Income Constrained, Employed.
ALICE is a term to describe those whose income is above the Federal Poverty Level — so they don’t qualify for public assistance — yet they don’t earn enough to cover basic expenses such as rent, food and childcare. Nearly one-third of U.S. households (29%) fall into this category, according to United Way’s United for ALICE program.
How much money ALICE needs to survive
Researchers with the United for ALICE program developed a survival budget, which is adjusted by U.S. county and household type, and reflects the minimum costs, plus taxes, of six household necessities:
—Housing
—Childcare
—Food
—Transportation
—Healthcare
...continued
©2024 Bankrate.com. Distributed by Tribune Content Agency, LLC.
Comments