Persistent inflation has impacted Americans in various ways, with 65 percent stating that inflation affects their mental health, as per Bankrate's survey. ALICE: Asset Limited, Income Constrained, Employed, refers to those earning above the poverty level yet struggling to meet expenses. Understanding ALICE:
Researchers with United Way's ALICE program have identified 29 percent of U.S. households falling into this category. They earn too much for public aid but not enough to cover basic needs like rent and childcare. A survival budget developed by the program outlines the minimum costs for housing, childcare, food, transportation, healthcare, and technology. The Income Struggle:
Despite recent wage hikes for low-income jobs, some workers are worse off financially than a decade ago, with inflation and stagnant wages being key contributors. Director Stephanie Hoopes highlights the structural issues in the economy, affecting many low-paying jobs' ability to support families. Challenges Persist:
Stagnant or reduced incomes deter 32 percent of Americans from expecting any financial growth in 2024. High inflation remains a primary concern. The ALICE Essentials Index reflects a 7.3 percent increase from 2021 to 2023, exceeding the Consumer Price Index's rate due to tracking only essential living expenses. Seeking Assistance:
Individuals above the ALICE threshold but struggling can explore non-governmental resources like food banks and 211 call centers for support. Some opt for gig economy work to bridge financial gaps. Financial Tips:
Creating a budget helps manage income and expenses, enabling identification of areas for cost-cutting. Savings are crucial for emergencies, even small windfalls should be set aside. ALICE, despite not qualifying for government aid, can address financial struggles through smart budgeting and exploring additional income sources. Conclusion:
ALICE represents a significant portion of American households facing financial challenges, despite earning above poverty thresholds. With a strategic approach to budgeting and seeking additional income sources, ALICE individuals can navigate financial uncertainties effectively.