LANSING, Mich. (WLNS)– United Way of South Central Michigan analyzes a report released by United ALICE.
ALICE stands for Asset Limited, Income Constrained, Employed and estimates what it costs to live and work in Michigan and how many households cannot meet those costs, according to their website.
The latest report from local and six-county regional findings reads:
- 41% of households in the region fall below the ALICE Threshold, which is the income level needed to be financially stable. The number of households in poverty remained relatively stable at 13%, but those in the ALICE category – above poverty but below the threshold – increased by two percentage points, to 28%.
- Financial hardship affects different demographic groups differently. Black (61% below the ALICE Threshold), Hispanic (47%) and multi-racial (46%) households are more likely to fall below the ALICE Threshold than White (38%) households. Likewise, single-headed households with children, those headed by adults under age 25, and those headed by adults 65 and older are also more likely to struggle financially.
- The cost of living is outpacing income. A single adult in the region must earn $2,378 every month to cover the most basic of needs. That equates to a full-time hourly wage of $14.27. A family of four, with two adults and two children, needs $6,329 every month to meet those basics. That’s a full-time hourly wage of $37.97. These are paycheck-to-paycheck survival budgets, where one unplanned expense can send a household into poverty.
Jen Hsu-Bishop, Executive Impact & Equity Officer for United Way of South Central Michigan, said in a news release, that there is more work to be done and continues to remind people about the resources available to keep a roof over Michigan family’s heads.
“To be financially stable, which means being able to cover basic needs plus build some savings, a single adult in our region needs $4,104 every month. That’s a full-time hourly wage of $24.62.”
“We’re hopeful that a future where every person is valued, thriving, and connected for the common good is achievable. Getting there will take a collective, concerted effort. We invite our communities to join us to accelerate that journey,” said Chris Sargent, President & Executive Officer of United Way of South Central Michigan.