ALICE in Focus: Children
Since 2014, the Michigan Association of United Ways has shed light on the everyday struggles of households that are ALICE.
The ALICE in Focus Research Series takes this data to a new level, spotlighting the struggles of Michigan’s children living in financial hardship.
The number of children growing up in financial hardship in Michigan is drastically higher than is widely reported. According to the outdated Federal Poverty Level, 17% of children in Michigan lived in poverty in 2019. Yet United For ALICE data shows that another 27% — nearly twice as many — were also growing up in hardship, in households that earned above the poverty level but less than what is costs to afford the basics.
The reality is that between families in poverty and those who are ALICE, almost half (44%) of children in Michigan in 2019 lived in households with income below the ALICE Threshold, struggling to afford essentials in the communities where they lived.
ALICE in Focus: Children is a first-of-its-kind research brief that shines a light on the nearly 1 million Michigan children living in financial hardship.
The number of children growing up in financial hardship in Michigan has been systemically undercounted.
According to the Federal Poverty Level, 17% of children in Michigan (365,358) lived in poverty in 2019. Another 27% (580,761) were also growing up in hardship, in households that earned above the FPL but not enough to afford the basic in the communities where they lived.
71% of Black children and 58% of hispanic children in Michigan lived in households with income below the ALICE threshold in 2019.
While there are children below the ALICE Threshold across all demographic groups, Black and Hispanic children are disproportionately represented among ALICE children, compared to 36% of White children and 30% of Asian children - a result of persistent discrimination and systemic barriers that limit their opportunities for financial stability.
23% of Michigan children in households with two adults in the labor force were still below the ALICE Threshold.
The largest driver of a child’s financial stability is the employment status of household members, however children below the ALICE Threshold are concentrated in families where adults work in occupations with low median hourly wages. The 2022 ALICE Report update found that 75% of jobs in Michigan paid less than $20, while a family of four needs to earn $32.38 an hour in order to make ends meet.
Children below the alice threshold often lack access to resources.
Many ALICE families earn too much to be eligible for public assistance but still struggle to meet basic needs for their children, including stable housing, quality childcare and early education, private health insurance, and home internet access. When these necessities are at risk, there are both short-and long-term consequences for ALICE children.
Children in ALICE households suffered disproportionately during the pandemic.
According to the U.S. Census Bureau’s most recent Household Pulse Surveys, children and households below the ALICE Threshold bear the brunt of the pandemic’s physical and emotional toll including financial uncertainties, food insufficiency, interrupted learning, and delayed or missed health care.
