United Way Releases ALICE Report: Financial Hardship on the Rise in Colorado

The United Way has just released its latest ALICE Report, highlighting the increasing financial struggles faced by families in Colorado. According to the 2022 findings, a growing number of Coloradans are finding it difficult to cover the cost of basic household necessities.

ALICE Explained: A Snapshot of Struggling Households

The ALICE acronym stands for Asset Limited, Income Constrained, Employed—a designation used to describe individuals or families who are working but still unable to afford life’s basic expenses. The United Way’s report sheds light on how these households are grappling with everyday financial pressures.

At an event held on Thursday, January 16th, the nonprofit shared the findings from the study, showing that the financial strain on households continues to rise. The report found that for a family of four in Colorado, the cost of living—covering necessities like housing, food, transportation, and childcare—has now surpassed $88,000 annually.

“This is a wake-up call,” said a United Way spokesperson. “More and more families are struggling to make ends meet despite being employed.”

Colorado ALICE Report financial hardship

Rising Numbers of ALICE Households

The report paints a concerning picture for Colorado’s working families. Over the last decade, the number of ALICE households in the state has steadily increased. According to the United Way, one in three Coloradans now face challenges affording basic needs.

This is not an isolated issue, as many states are seeing similar trends. Rising housing costs, inflation, and stagnating wages are contributing to the financial squeeze on middle- and low-income families.

In fact, a significant portion of the population falls into the “ALICE” category, meaning they earn above the federal poverty level but still don’t make enough to cover the basics. These individuals often live paycheck to paycheck, without a financial cushion to absorb unexpected expenses.

The Struggles of the ALICE Household

While the report doesn’t delve deeply into individual stories, it highlights a widespread issue—financial insecurity. Families in this category typically live with few options for saving or improving their financial outlook. They are employed, often holding down multiple jobs, but their income is simply not enough to keep up with the rising costs of living.

“Many people in the ALICE category are working harder than ever, yet they still don’t have the financial security they need,” explained the spokesperson.

What’s Behind the Rise?

Several factors are fueling the increasing number of ALICE households in Colorado:

  • Housing Costs: The rapid increase in housing prices has been one of the biggest contributors. Even moderate-income families are finding it difficult to afford rent or purchase a home.
  • Healthcare and Childcare: The cost of healthcare and childcare continues to rise, squeezing family budgets even further.
  • Wage Stagnation: While costs continue to climb, wages for many workers have failed to keep pace, creating a financial gap that many families struggle to fill.

It’s not just low-income workers who are affected. Many middle-income households are also feeling the pressure, with expenses eating up a larger portion of their earnings.

The Broader Implications

The ALICE Report serves as a stark reminder of the widening gap between income and cost of living in Colorado. As the number of ALICE households continues to grow, there’s increasing concern about the long-term sustainability of the state’s economy.

One of the most pressing concerns is the impact on children in these households. The financial instability faced by families often results in poor health outcomes, limited educational opportunities, and emotional stress for children.

There’s a growing call for action to address the needs of ALICE households and to find solutions that can alleviate the pressure on families struggling to make ends meet.

While the United Way’s report offers a sobering look at the economic hardships many face, it also provides a foundation for advocacy and action. Community organizations, lawmakers, and local leaders are being urged to work together to create policies and programs that support these vulnerable families.

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