A school-age child, wearing a backpack and a pink jacket, stands in front of a school bus and stares at the camera with a serious expression.

Research Center

ALICE In Focus Series

Children in Financial Hardship

According to the outdated Federal Poverty Level, 16% of children in the U.S. lived in poverty in 2022. Yet United For ALICE data shows that another 34% — more than twice as many — were also growing up in hardship, in households that earned above the poverty level but less than what it costs to afford the basics. These households are ALICE: Asset Limited, Income Constrained, Employed.

The reality is that between families in poverty and those that are ALICE, half (50%) of children in the U.S. in 2022 lived in households with income below the ALICE Threshold, struggling to afford the basics of housing, child care, food, transportation, health care, technology, and taxes in their communities.

Use the Data Dashboard, Local Maps, State Briefs & Sponsors, Committees, and Resources tabs below to learn more about children experiencing financial hardship.

Additional Resources on Children and Financial Hardship

As outlined in detail in United For ALICE's 2019 Consequences of Insufficient Household Income report, growing up in a struggling household impacts all aspects of children's lives — from housing stability and food security, to access to quality education and technology. These issues are compounded by persistent discrimination and systemic barriers that limit access to resources and opportunities for financial stability for many children and families.

Key resources related to children and financial hardship are included below, offering important context and even deeper analysis. This list includes the references linked in our ALICE in Focus: Children Research Brief, as well as additional resources on topics from the ALICE Children Data Dashboard.

Topics:

Children And Financial Hardship (General)

Boghani, P. (2017, November 22). Frontline. How poverty can follow children into adulthood. Broadcast, PBS. https://www.pbs.org/wgbh/frontline/article/how-poverty-can-follow-children-into-adulthood/

Braveman, P.A., Arkin, E., Proctor, D., Kauh, T. & Holm, N. (2022, February). Systemic and structural racism: Definitions, examples, health damages and approaches to dismantling. Health Affairs, 41(2). https://doi.org/10.1377/hlthaff.2021.01394

Children's Defense Fund. (2023). The State of America's Children 2023. https://www.childrensdefense.org/tools-and-resources/the-state-of-americas-children/

Gennetian, L. A., & Hirsch-Pasek, K. (2020, May 13). Where’s the rallying cry? America’s children are unequally prepared to absorb the impacts of COVID-19. The Brookings Institution. https://www.brookings.edu/blog/education-plus-development/2020/05/13/wheres-the-rallying-cry-americas-children-are-unequally-prepared-to-absorb-the-impacts-of-covid-19/4 

Hanks, A., Solomon, D., Weller, C.E. (2018, February 21). Systemic inequality: How America’s structural racism helped create the Black-White wealth gap. The Center for American Progress. https://www.americanprogress.org/article/systematic-inequality/

Miller, P., Podvysotska, T., Betancur, L., & Votruba-Drzal, E. (2021). Wealth and child development: Differences in associations by Family Income and Developmental Stage. RSF: The Russell Sage Foundation Journal of the Social Sciences, 7(3), 154. https://www.rsfjournal.org/content/7/3/154

Mulkey, S. B., Bearer, C. F., & Molloy, E. J. (2023). Indirect effects of the COVID-19 pandemic on children relate to the child’s age and experience. Pediatric Research, 94(5), 1586–1587. https://doi.org/10.1038/s41390-023-02681-4 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10242215/#:~:text=The%20COVID%2D19%20pandemic%20has%20had%20significant%20indirect%20effects%20on,on%20social%20determinants%20of%20health

Oberg, C., Hodges, H.R., Gander, S., Nathawad, R., & Cutts, D. (2022). The impact of COVID-19 on children’s lives in the United States: Amplified inequities and a just path to recovery. Current Problems in Pediatric and Adolescent Health Care, 52(7 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8923900/

Pika, J. (2020, July 23). One thing leads to another: Financial hardship, family well-being and the impact on young children. Center for the Study of Social Policy. https://www.nccp.org/wp-content/uploads/2020/10/Deep-Poverty-Report-11.11.20_Final.pdf

Pika, J. (2020, July 23). One thing leads to another: Financial hardship, family well-being and the impact on young children. Center for the Study of Social Policy. https://cssp.org/2020/07/one-thing-leads-to-another/

The National Academies of Sciences, Engineering, and Medicine. (2019, February 28). A roadmap to reducing child poverty. https://www.nap.edu/child-poverty/

United For ALICE. (2019). The consequences of insufficient household income. https://www.unitedforalice.org/consequences 

Zero to Three. (2022, February 7). Pathways to prosperity: Report from a convening on economic security for families with infants and toddlers. https://www.zerotothree.org/resource/4294-pathways-to-prosperity-report-from-a-convening-on-economic-security-for-families-with-infants-and-toddlers 

Zippel, C., & Sherman, A. (2021, February 25). Bolstering family income is essential to helping children emerge successfully from the current crisis. Center on Budget and Policy Priorities. https://www.cbpp.org/research/poverty-and-inequality/bolstering-family-income-is-essential-to-helping-children-emerge 

Disability Status

Cheng, L., & Shaewitz, D. (2021). The 2021 youth transition report: Outcomes for youth and young adults with disabilities. Institute for Educational Leadership. https://iel.org/wp-content/uploads/2021/12/IEL_YouthTransitionReport_2021_Dec13.pdf

Foster, C., Chorniy, A., Kwon, S., Kan, K., Heard-Garris, N., & Davis, M.M. (2021, September). Children with special health care needs and forgone family employment. Pediatrics, 148(3). https://doi.org/10.1542/peds.2020-035378 

Goodman, N., Morris, M., & Boston, K. (n.d.). Financial inequality: Disability, race, and poverty in America. National Disability Institute. https://www.nationaldisabilityinstitute.org/wp-content/uploads/2019/02/disability-race-poverty-in-america.pdf

U.S. Department of Education. (n.d.). “IDEA Section 618 Data Products: Static Tables Part B Child Count & Educational Environments Table 1,” 2019-2020. https://data.ed.gov/dataset/idea-section-618-data-products-static-tables-part-b-count-environ-table1/resources

Young, N.A.E. & Crankshaw, K. (2021, March 25). U.S. childhood disability rate up in 2019 from 2008: Disability rates highest among American Indian and Alaska Native children and children living in poverty. U.S. Census Bureau. https://www.census.gov/library/stories/2021/03/united-states-childhood-disability-rate-up-in-2019-from-2008.html

Living Arrangements

Barroso, A., & Fry, R. (2021, July 7). On some demographic measures, people in same-sex marriages differ from those in opposite-sex marriages. Pew Research Center. https://www.pewresearch.org/fact-tank/2021/07/07/on-some-demographic-measures-people-in-same-sex-marriages-differ-from-those-in-opposite-sex-marriages/

Family Equality Council. (n.d.). LGBTQ Family Fact Sheet. https://www2.census.gov/cac/nac/meetings/2017-11/LGBTQ-families-factsheet.pdf 

Generations United. (2020). State of Grandfamilies 2020: Facing a pandemic: Grandfamilies living together during COVID-19 and thriving beyond. https://www.gu.org/app/uploads/2020/10/2020-Grandfamilies-Report-Web.pdf 

Generations United. (2021). Family matters: Multigenerational living is on the rise and here to stay. https://www.gu.org/app/uploads/2021/04/21-MG-Family-Report-WEB.pdf

Gupta-Kagan, J. (2020, April). America’s hidden foster care system. Stanford Law Review, Vol. 72. https://review.law.stanford.edu/wp-content/uploads/sites/3/2020/04/Gupta-Kagan-72-Stan.-L.-Rev.-841.pdf

Hemez, P. & Washington, C. (2021, April 12). Number of children living with their mothers has doubled in past 50 years. U. S. Census Bureau. https://www.census.gov/library/stories/2021/04/number-of-children-living-only-with-their-mothers-has-doubled-in-past-50-years.html 

Livingston, G. (2018, April 25). The changing profile of unmarried parents. Pew Research Center. https://www.pewresearch.org/social-trends/2018/04/25/the-changing-profile-of-unmarried-parents/

The Annie E. Casey Foundation. (2022, February 27). Foster care explained: What it is, how it works, and how it can be improved. https://www.aecf.org/blog/what-is-foster-care#:~:text=Why%20Are%20Kids%20in%20Foster,unable%20to%20care%20for%20them

U.S. Department of Health & Human Services. (2021, July 15). How many children are in foster care in the United States? In my state? How long do children stay in foster care? What happens to them after they emancipate? Children’s Bureau. https://www.acf.hhs.gov/cb/faq/foster-care3

Williams, S.C., Sepulveda, K. (2019, May 21). The share of children in foster care living with relatives is growing. https://www.childtrends.org/blog/the-share-of-children-in-foster-care-living-with-relatives-is-growing

Household Work

AAUW. (n.d.). The simple truth about the gender pay gap. https://www.aauw.org/resources/research/simple-truth/

Fry, R. (2022, January 14). Some gender disparities widened in the U.S. workforce during the pandemic. Pew Research Center. https://pewrsr.ch/322kiTI

Lloyd, C. (2021, January 12). One in four black workers report discrimination at work. Gallup. https://news.gallup.com/poll/328394/one-four-black-workers-report-discrimination-work.aspx

Place, A. (2021, February 24). Yet another hurdle for women at work: Their age. https://www.benefitnews.com/news/age-is-another-hurdle-for-women-at-work 

Wang, W. & Erickson, J. (2021, August). Homeward bound: The work-family reset in post-COVID America. Institute for Family Studies. Institute for Family Studies. https://ifstudies.org/ifs-admin/resources/final-ifsparentsreport.pdf

Housing

Barbosa, E. (2024, January 10). “New HUD Data Show Dramatic Increase in Youth and Families in Homeless Shelters, Even While Significantly Undercounting Youth and Families Experiencing Homelessness.” National Network for Youth (blog). https://nn4youth.org/2024/01/10/dramatic-increase-homelessness/

Cunningham, C., Gillespie, S., & Batko, S. (2019, May). How housing matters for families: Findings from in-depth interviews with parents in supportive housing. Urban Institute. https://www.urban.org/sites/default/files/publication/100292/how_housing_matters_for_families_1.pdf

Gaitán, V. (2019, January 2). How housing affects children's outcomes. Housing Matters, Urban Institute. https://housingmatters.urban.org/articles/how-housing-affects-childrens-outcomes

Golding, E. Goodman, L., & Strochak, S. (2018, March). Is limited English proficiency a barrier to homeownership? Urban Institute. https://www.urban.org/sites/default/files/publication/97436/is_limited_english_proficiency_a_barrier_to_homeownership_0.pdf

Green, K-A., Bovell-Ammon, A., Sandel, M. (2021, August). Housing and neighborhoods as root causes of child poverty. Academic Pediatrics, 21: S194–199. https://childrenshealthwatch.org/wp-content/uploads/1-s2.0-S187628592100437X-main.pdf

McDonald, G., & Santos, M. (2021, October 12). Addressing the Post-COVID-19 Needs of Young People Experiencing Homelessness. American Bar Association https://www.americanbar.org/groups/crsj/publications/human_rights_magazine_home/empowering-youth-at-risk/addressing-the-post-covid-19-needs/

PD&R’s The Edge,  (n.d.). Economic mobility: Measuring the American dream. HUD User. https://www.huduser.gov/portal/pdredge/pdr_edge_featd_article_071414.html

Sandel, M., Sheward, R., Ettinger de Cuba, S., Coleman, S.M., Frank, D.A., Chilton, M., Black, M., Heeren, T., Pasquariello, J., Casey, P., Ochoa, E., Cutts, D. (2018). Unstable housing and caregiver and child health in renter families. Pediatrics, 141 https://publications.aap.org/pediatrics/article/141/2/e20172199/38056/Unstable-Housing-and-Caregiver-and-Child-Health-in 

Child Care

Bateman, N., & Ross, M. (2020, October). Why has COVID-19 been especially harmful for working women? The Brookings Institution. https://www.brookings.edu/essay/why-has-covid-19-been-especially-harmful-for-working-women/

Child Care Aware. (2022). Demanding change: Repairing our child care system. https://www.childcareaware.org/demanding-change-repairing-our-child-care-system/ 

Heckmanequation.org. (2022). Research summary: The lifecycle benefits of an influential early childhood program. https://heckmanequation.org/resource/research-summary-lifecycle-benefits-influential-early-childhood-program/

Morrisey, T. (2020, February 18). Addressing the need for affordable, high-quality early childhood care and education for all in the United States. Washington Center for Equitable Growth. https://equitablegrowth.org/addressing-the-need-for-affordable-high-quality-early-childhood-care-and-education-for-all-in-the-united-states/ 

Education

2023 Yearbook. National Institute for Early Education Research. (2023) https://nieer.org/yearbook/2023

Afterschool Alliance. (2020). America after 3PM: Demand grows, opportunity shrinks. http://afterschoolalliance.org/documents/AA3PM-2020/AA3PM-National-Report.pdf

Afterschool Alliance. (2021, April). The evidence base for afterschool and summer. http://afterschoolalliance.org/documents/The-Evidence-Base-For-Afterschool-And-Summer-2021.pdf 

Bouchrika, I. “High School Dropout Rate Is Decreasing but Race, Income & Disability Issues Persist in 2024.” Research.com https://research.com/education/high-school-dropout-rate

Chatterjee, R. (2017, March 23). Kids who suffer hunger in first years lag behind their peers in school. The Salt. NPR. https://childrenshealthwatch.org/kids-who-suffer-hunger-in-first-years-lag-behind-their-peers-in-school/

Dorn, E., Hancock, B., Sarakatsannis, J., & Viruleg, E. (2021, July 27). COVID-19 and education: The lingering effects of unfinished learning. McKinsey & Company. https://www.mckinsey.com/industries/education/our-insights/covid-19-and-education-the-lingering-effects-of-unfinished-learning

Long, H. & Douglas-Gabriel, D. (2020, September 16). The latest crisis: Low-income students are dropping out of college this fall in alarming numbers. The Washington Post. https://www.washingtonpost.com/business/2020/09/16/college-enrollment-down/ 

McCoy, D.C., Yoshikawa, H., Ziol-Guest, K.M., Duncan, G.J., Schindler, H.S., Magnuson, K., Yang, R., Koepp, A., & Shonkoff, J.P. (2017, November). Impacts of early childhood education on medium- and long-term educational outcomes. Educational Research, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6107077/pdf/nihms984699.pdf 

Naftzger, N. & Newman, J. (2021). Harnessing the power of afterschool and summer programs to support recovery and reengagement. American Institutes for Research. https://www.air.org/sites/default/files/2021-09/Harnessing-the-Power-of-Afterschool-and-Summer-Programs-Brief-Recovery-Reengagement-Sept-2021.pdf 

NCES Fast Facts Tool. National Center for Education Statistics. https://nces.ed.gov/fastfacts/display.asp?id=16

Health

Three core concepts in early development. Center on the Developing Child at Harvard University. (2023, July 13). https://developingchild.harvard.edu/resources/three-core-concepts-in-early-development/

What are aces? and how do they relate to toxic stress?. Center on the Developing Child at Harvard University. 2020, October 30). https://developingchild.harvard.edu/resources/aces-and-toxic-stress-frequently-asked-questions/

Abrams, Z. (2023, April 27). Are your kids stressed about family finances? Psychologists offer answers for addressing anxiety over tight budgets. American Psychological Association. https://www.apa.org/topics/money/family-financial-strain

American Academy of Pediatrics. (2021, December 9). Interim guidance on supporting the emotional and behavioral health needs of children, adolescents, and families during the COVID-19 pandemic. https://www.aap.org/en/pages/2019-novel-coronavirus-covid-19-infections/clinical-guidance/interim-guidance-on-supporting-the-emotional-and-behavioral-health-needs-of-children-adolescents-and-families-during-the-covid-19-pandemic/

BUJPH. (2024, April 3). Hunger After Crisis: Exploring Post-Pandemic Trends in Food Insecurity. Brown Undergraduate Journal of Public Health https://sites.brown.edu/publichealthjournal/2024/04/03/hunger-after-crisis-exploring-post-pandemic-trends-in-food-insecurity/

Children’s HealthWatch. (2015, April). Doctor’s orders: Promoting healthy child development by increasing food security in Arkansas. http://www.childrenshealthwatch.org/wp-content/uploads/FINAL-ARFoodSecurity.pdf

Das, L.T., Kutscher, E.J., & Gonzales, C.J (2020, July 29). Addressing barriers to care for patients with limited English proficiency during the COVID-19 pandemic. Health Affairs. https://www.healthaffairs.org/do/10.1377/forefront.20200724.76821/full/ 

Edmunds, M., & Coye, M.J., eds. (1998). America’s children: Health insurance and access to care. National Academies Press. https://www.ncbi.nlm.nih.gov/books/NBK230381/pdf/Bookshelf_NBK230381.pdf

Francis, L., DePriest, K., Wilson, M., & Gross, D. (2018, September 30). Child poverty, toxic stress, and social determinants of health: Screening and care coordination. Online Journal of Issues in Nursing, 23(3), Manuscript 2. https://doi.org/10.3912/OJIN.Vol23No03Man02

Institute of Medicine (U.S.) Committee on the Consequences of Uninsurance. (2002). Chapter 3: Effects of health insurance on Health, in Care without coverage: Too little, too late. National Academies Press. https://www.ncbi.nlm.nih.gov/books/NBK220636/ 

National Academies of Sciences, Engineering, and Medicine. (2019). Vibrant and healthy kids: Aligning science, practice, and policy to advance health equity. The National Academies Press. https://doi.org/10.17226/25466 

Pillai, A., Pillai, D., and Artiga, S. (2024, June 20). State Health Coverage for Immigrants and Implications for Health Coverage and Care. KFF. https://www.kff.org/racial-equity-and-health-policy/issue-brief/state-health-coverage-for-immigrants-and-implications-for-health-coverage-and-care/

Schneider, A. & Gibbs, H. (2023, June 29). Strengthening early childhood health, housing, education, and economic well-being through holistic public policy. The Center for American Progress. https://www.americanprogress.org/article/strengthening-early-childhood-health-housing-education-and-economic-well-being-through-holistic-public-policy/

The Kids Mental Health Foundation (n.d.). On Our Sleeves. https://kidsmentalhealthfoundation.org

Tolbert, J., Drake, P. & Damico, A. (2023, December 18). Key facts about the uninsured population. Kaiser Family Foundation. https://www.kff.org/uninsured/issue-brief/key-facts-about-the-uninsured-population/

Woolf, S.H., Laudan, A., Dubay, L., Simon, S.M., Zimmerman, E., & Luk, K.X. (2015, April 13). How are income and wealth linked to health and longevity? The Urban Institute. https://www.urban.org/sites/default/files/publication/49116/2000178-How-are-Income-and-Wealth-Linked-to-Health-and-Longevity.pdf

Technology

Office of Educational Technology. (2024, January). A Call to Action for Closing the Digital Access, Design,and Use Divides. US Department of Education https://tech.ed.gov/files/2024/01/NETP24.pdf

Pew Research Center (n.d.). Digital Divide. https://www.pewresearch.org/topic/internet-technology/technology-policy-issues/digital-divide/ 

Prothero, Arianna. (2024, February 14). A New Digital Divide? Low-Income Students See More Ads in the Tech Their Schools Use. Education Week. https://www.edweek.org/technology/a-new-digital-divide-low-income-students-see-more-ads-in-the-tech-their-schools-use/2024/02

Service, Purdue News. (2024, April 24). Recognizing the Critical Need for Broadband to Bridge the Digital Divide. https://www.purdue.edu/newsroom/releases/2024/Q2/recognizing-the-critical-need-for-broadband-to-bridge-the-digital-divide.html

Public Assistance

Carlson, S. & Neuberger, Z. (2021, January 27). WIC Works: Addressing the nutrition and health needs of low-income families for more than four decades. Center on Budget and Policy Priorities. https://www.cbpp.org/sites/default/files/atoms/files/5-4-15fa.pdf

Center on Budget and Policy Priorities. (2022, January 6). A quick guide to SNAP eligibility and benefits. https://www.cbpp.org/research/food-assistance/a-quick-guide-to-snap-eligibility-and-benefits

Center on Budget and Policy Priorities. (n.d.). State temporary assistance for needy families programs do not provide adequate safety net for poor families. https://www.cbpp.org/state-temporary-assistance-for-needy-families-programs-do-not-provide-adequate-safety-net-for-poor

Ettinger de Cuba, S., Chilton, M., Bovell-Ammon, A., Knowles, M., Coleman, S.M., Black, M.M., Cook, J.T., Becker Cutts, D., Casey, P.H., Heeren, T.C., & Frank, D.A. (2019, May). Loss of SNAP is associated with food insecurity and poor health in working fa https://doi.org/10.1377/hlthaff.2018.05265

Minton, S. & Giannarelli, L. (2019, February). Five things you may not know about the U.S. social safety net. Urban Institute. https://www.urban.org/sites/default/files/publication/99674/five_things_you_may_not_know_about_the_us_social_safety_net_1.pdf

Thompson, G.A., Azevedo-McCaffrey, D. and Carr, D. (2023, February 3). Increases in TANF cash benefit levels are critical to help families meet rising costs. Center on Budget and Policy Priorities. https://www.cbpp.org/research/income-security/increases-in-tanf-cash-benefit-levels-are-critical-to-help-families-meet-0

Child Tax Credit

Curran, M.A. (2021, December 22). Research roundup of the expanded child tax credit: The first 6 months. Policy & Social Poverty Report, 5(5). https://static1.squarespace.com/static/610831a16c95260dbd68934a/t/61f946b1cb0bb75fd2ca03ad/1643726515657/Child-Tax-Credit-Research-Roundup-CPSP-2021.pdf

Parolin, Z., Collyer, S., & Curran, M.A. (2022, February 17). Absence of monthly child tax credit leads to 3.7 million more children in poverty in January 2022. Poverty and Social Poverty Brief, 6(2). https://static1.squarespace.com/static/610831a16c95260dbd68934a/t/620ec869096c78179c7c4d3c/1645135978087/Monthly-poverty-January-CPSP-2022.pdf 

Pilkauskas, N. & Cooney, P. (2021, October). Receipt and usage of child tax credit payments among low-income families: What we know. University of Michigan Poverty Solutions. http://sites.fordschool.umich.edu/poverty2021/files/2021/10/PovertySolutions-Child-Tax-Credit-Payments-PolicyBrief.pdf

Shivaram, D. (2022, January 21). Families are in distress after the first month without the expanded child tax credit. https://www.npr.org/2022/01/21/1074413273/end-expanded-child-tax-credit-families-effects

Data Resources

American Community Survey. (2019). 1-year estimates [Public use microdata sample (PUMS)]. U.S. Census Bureau. https://www.census.gov/programs-surveys/acs/microdata/access.html 

Bureau of Labor Statistics. (n.d.). Occupational employment statistics: May 2022 state occupational employment and wage estimates. U.S. Department of Labor. May 2022 State Occupational Employment and Wage Estimates (bls.gov)

The Annie. E. Casey Foundation. (2021, December 13). Census 2020 undercount: The good, the bad and what we learned. https://www.aecf.org/blog/census-2020-undercount

U.S. Census Bureau. (2021, October 8.). The undercount of young children. https://www.census.gov/programs-surveys/decennial-census/decade/2020/planning-management/plan/undercount-of-young-children.html

U.S. Census Bureau. (2022). Household Pulse Survey [Public use file]. https://www.census.gov/programs-surveys/household-pulse-survey/data.html

U.S. Census Bureau. (2022). Public Use Microdata Areas (PUMAs). https://www.census.gov/programs-surveys/acs/microdata/access.html

Pandemic Assistance

The six laws that funded pandemic relief programs. (n.d.). Pandemicoversight.gov. https://www.pandemicoversight.gov/about-us/pandemic-relief-program-laws