- DINKs are known for having disposable income, but some childless adults are also struggling.
- In fact, many childless adults are ALICE, with limited assets, limited income, and employment.
- Without dependents, many low-income workers have difficulty accessing tax credits and government assistance.
American DINKS — dual-income couple without children — They have disposable income and are known to spend their paychecks on large investments, lavish vacations, and early retirement.
These households previously told Business Insider that the lack of child-related expenses allows them to spend extra money on their lifestyles. By definition, DINKs are not necessarily wealthy, but they are known for living a life of freedom and surplus cash.
But the number of childless adults is growing and falling through the cracks in the U.S. economy. Many low-income adults without children fall into her ALICE category: people with limited assets, limited income, and employment. Twenty-nine percent of U.S. households earn too much to receive government assistance, but not enough to live comfortably on a daily basis. And ALICE, who is not a parent, faces unique challenges. Even if you need help, it's especially difficult to qualify for financial aid or tax credits if you don't have young children.
According to a report released in April by the Brookings Institution, the United States lacks a strong financial safety net to support childless ALICE. Part of the reason is that having economically dependent children is a prerequisite for government assistance programs.
In 2017, nearly 106 million poor non-elderly people were not raising children and were not eligible for disability benefits, according to a census analysis. Additionally, they are at higher risk of experiencing homelessness and long-term poverty, according to the Brookings report.
Low-income adults without children face barriers to government assistance
Low-income, childless adults are more likely to fall into poverty and often remain in poverty for long periods of time due to a lack of support. Robert Greenstein, author of the Brookings report, wrote:
“The safety net for non-elderly childless adults is very limited, and the non-elderly poor tend to be poorer than other poor people,” said Greenstein, who is also a visiting fellow in economic studies at the Brookings Institution. “There is,” he wrote. , in partnership with the economic policy initiative The Hamilton Project.
The report found that half of Americans living in “extreme poverty” (those with incomes below 50% of the poverty line, which is $7,290 per person per year) are childless adults receiving disability benefits. It was made clear that there was no.
Greenstein wrote This means that even if their household income is low, these people are at a disadvantage when applying for government assistance, especially when it comes to tax credits and housing assistance.
For example, they are not eligible for the child tax credit, which allows families with dependents to receive thousands of dollars in tax breaks each year.Earned Income Tax Credit — Provides refundable tax credits to low- and moderate-income workers — Benefits for employees without children are also very limited, receiving less than 4% of total EITC benefits, according to the Brookings report.
Greenstein also noted that more than 7 million low-income adults between the ages of 18 and 61 who do not live with minors pay more than 50% of their income in rent, making them severely rent-burdened. I also wrote The majority of these adults do not receive state or federal rental assistance.
Additionally, parents can access SNAP food benefits more easily than adults without children because they are exempt from having to work the required number of hours each week to receive assistance.
Many Social Security and Medicare programs also primarily provide assistance to older adults, excluding adults under 62 years of age.
Strengthening the U.S. financial safety net for this population is complex, but Greenstein offered some solutions. He proposed removing additional qualifications that childless adults must meet to access SNAP benefits, as well as expanding the Earned Income Tax Credit to benefit childless adults.
Greenstein said the Affordable Care Act's Medicaid expansion will allow more adults to get the health care they need even if they don't qualify for disability benefits or Social Security.
Do you earn above the poverty line but still struggle to meet your daily needs? Have you faced difficulty qualifying for government assistance because you don't have children? For inquiries to this reporter, please contact the following address: allisonkelly@insider.com.
