Imagine waking up every day knowing you have to make impossible choices: paying for your child's medication or putting enough food on the table. This is the reality for over 40 percent of U.S. households living below the ALICE Threshold.
ALICE, which stands for Asset Limited, Income Constrained, Employed, represents families who earn above the Federal Poverty Level but still struggle to cover the basic cost of living in their communities.
These families are our neighbors, friends and colleagues. They work hard, yet their income is not enough to meet their essential needs. The challenges they face are interconnected, and so must be our solutions. It requires a collective effort from community stakeholders—family, friends, businesses, nonprofits and government—to build tailored solutions that address local factors and areas of struggle.
When ALICE households achieve financial stability, our communities become stronger and can thrive, benefiting everyone.
The impact of financial hardship
Financial hardship doesn't only affect individuals and families; it ripples through the entire community.
When households can't afford the basics, they are forced into making difficult choices and trade-offs every day. The larger the gap between income and expenses, the more extreme these decisions become, posing greater risks to a family's immediate health, safety and financial stability.
In youth development, this trade-off is reflected in lack of participation due to limited resources. Barriers that can limit youth participation are registration fees, transportation, overnight stays or expectations that families provide snacks or supplies for a 4-H program. For our volunteers, barriers could be transportation, no paid time off from employment or not paying a bill to cover the overnight stay.
The role of youth development
Youth development work is more crucial than ever. We must connect and collaborate with our local stakeholders to plan and build a cohesive effort.
A cohesive effort, includes:
Identifying where youth are and meeting them where they are at.
Knowing our volunteers and understanding how we can support them.
Building and sustaining partnerships to provide engaging, high-quality youth programs that do not exclude anyone based on limited resources.
Offering youth free opportunities, providing transportation and securing financial sponsorships to help ensure that financial barriers do not hinder youth participation in our programs.
In summary
Addressing the challenges faced by ALICE households requires a comprehensive, community-based approach. By working together, we can create solutions that support financial stability and improve the quality of life for all. Youth development programs play a vital role in this effort by ensuring that young people have the opportunities they need to thrive, regardless of their family's financial situation.
Let's come together to support ALICE families and build a brighter future for our youth and our communities.
ALICE households in Minnesota
In 2022, Minnesota had 2,303,607 households, with 10% earning below the Federal Poverty Level and 26% classified as ALICE. This means that 36% of households in Minnesota were below the ALICE threshold.
The number of ALICE households increased from 739,549 in 2019 to 834,343 in 2022.
United for ALICE (2025). https://www.unitedforalice.org/