Understanding ALICEs: Childfree Adults Struggling in the US Economy

Don't call them DINKs. Many childfree adults are ALICEs. More Americans are becoming ALICEs — asset-limited, income-constrained, and employed. They live above the federal poverty line, but struggle to afford basic necessities. DINKs are known for having disposable income, but some childfree adults are also struggling. In fact, many childfree adults are ALICEs — asset-limited, income-constrained, and employed.

The Rise of ALICEs

Without dependents, many low-income workers have a harder time accessing tax credits and government assistance. America's DINKs — dual-income couples with no children — are known for having disposable income and spending their paychecks on major investments, luxury vacations, and early retirement. These households have previously told Business Insider that they can spend extra money on their lifestyle because they don't have any child-related costs. By definition, DINKs aren't necessarily rich, but they do have a reputation for living a life of freedom and excess cash.

Challenges Faced by Childfree ALICEs

A growing number of childfree adults, however, are falling through the cracks of the US economy. Many low-income childfree adults fall into the ALICE category — people who are asset-limited, income-constrained, and employed. Twenty-nine percent of US households make too much to qualify for government assistance but not enough to comfortably afford daily life. And ALICEs who aren't parents face unique challenges: it is especially difficult to qualify for financial help or tax credits without young children, even if you need the help.

Limited Financial Safety Net

According to a report published in April by the Brookings Institution, the US doesn't have a strong financial safety net to support childfree ALICEs. This is partly because having financially dependent children is a prerequisite of some government assistance programs. Poor, non-elderly adults who are not raising children and don't qualify for disability benefits made up nearly 106 million people in 2017, according to a Census analysis. What's more, they have a higher risk of experiencing homelessness and long-term poverty, per the Brookings report.

Barriers to Government Assistance

Low-income adults without children face barriers to government assistance. Low-income, childfree adults have a higher likelihood of falling into poverty, and often stay in poverty long-term because they can't access assistance. Robert Greenstein, the author of the Brookings report, wrote that the safety net for non-elderly childless adults is so limited that those in poverty tend to be poorer than others living in poverty. Greenstein suggested expanding the Earned Income Tax Credit to benefit more adults without children and removing extra qualifications childfree adults must meet to access SNAP benefits.

Potential Solutions

Greenstein also recommended an expansion of Medicaid through the Affordable Care Act to allow more adults to get the healthcare they need. Strengthening the US financial safety net for childfree adults facing financial challenges is complex, but these solutions could help bridge the gap and provide much-needed support.

Are you making an income above the poverty line but still struggling to afford daily life? Have you faced challenges qualifying for government assistance because you don't have children? Reach out to this reporter at allisonkelly@insider.com. Read the original article on Business Insider.

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By: allisonkelly@insider.com (Allie Kelly)
Title: Understanding ALICEs: Childfree Adults Struggling in the US Economy
Sourced From: www.businessinsider.com/government-assistance-food-stamps-snap-doesnt-help-low-income-dinks-2024-5
Published Date: Tue, 14 May 2024 13:19:52 +0000