Income
In Chippewa County, many working families are struggling to make ends meet, even though they have jobs. These families are part of what’s known as ALICE—Asset Limited, Income Constrained, Employed. The ALICE score measures how many households earn more than the Federal Poverty Level (FPL) but still can’t afford basic living expenses. Let’s dive into what this means for Chippewa County by looking at the ALICE Essentials Index and how the Area Median Income (AMI) has changed.
The ALICE Essentials Index
The ALICE Essentials Index tracks how the cost of basic needs like housing, food, transportation, and healthcare changes over time. When these costs rise, it becomes even harder for ALICE households to cover their expenses. This index helps us understand the growing financial pressure on families who are already struggling.
The Increase in Area Median Income (AMI)
The Area Median Income (AMI) is the midpoint of income in Chippewa County—half of the households earn more, and half earn less. In 2023, the AMI was $50,000. However, by 2024, it increased to $80,000 a 60% change. While this might sound like good news, it doesn’t necessarily mean that all families are better off. The ALICE Essentials Index shows that the cost of living has also increased, which means many families are still struggling, even with higher incomes.
The ALICE Essentials Index, which tracks the rising costs of basic needs. In 2024 47% of Chippewa County is below the ALICE threshold that is a 1.57% increase from last year
2. The ALICE Essentials Index (AEI): Despite the rise in income, the cost of basic necessities tracked by the ALICE Essentials Index has also increased by 1.52%. This means that even though families are earning more, the cost of living has gone up too, making it difficult for ALICE households to cover their basic needs.
Why This Matters
Even though the AMI in Chippewa County has increased significantly, many working families are still finding it hard to make ends meet because the cost of living is rising just as fast—or even faster. A high ALICE score means that a large portion of households are still living paycheck to paycheck, without enough savings to cover unexpected expenses.
Conclusion
The increase in the Area Median Income in Chippewa County to $80,000 in 2024 is a positive sign, but it’s important to remember that many families are still struggling due to rising costs of living. The ALICE Essentials Index helps highlight the ongoing financial pressure on these working families. By understanding these challenges, community leaders and organizations can work to provide better support and resources to help ALICE households achieve financial stability.
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