The Consequences of Insufficient Household Income

Over 40 percent of U.S. households earn below the ALICE Threshold, which means that millions of families are forced to make difficult choices and risky trade-offs every day.

This online Consequences of Insufficient Household Income report explores:

  • How ALICE and poverty-level families get by when they do not have enough income or assistance to afford basic necessities.

  • How the six essential areas of a household budget — housing, child care and education, food, transportation, health care, and technology — as well as taxes affect financial decision-making for ALICE families. The larger the gap between income and expenses, the more extreme the decisions, and the greater the risks to a family’s immediate health, safety, and financial stability.

  • How the tough decisions ALICE households make affect their broader communities, and how future trends may shape those decisions going forward.

This report highlights how choices in one area invariably affect choices in other areas. The problems are complicated and interwoven. With this clear documentation of the issues and how they are interconnected, community stakeholders can start to build solutions for their neighborhoods, towns and cities, counties, and states. For solutions to be effective, they must be comprehensive and interconnected to address as many areas of struggle as possible. 

There are specific considerations in each area of the household budget:

Asset Limited, Income Constrained, Employed

© 2020 United Way of Northern New Jersey.  All rights reserved.

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