Though wages have risen across the country at the fastest rate in four decades, Tri-County households saw increases in the cost of living from 2021 to 2022 that far outpaced those additional earnings.
In Charleston County, a family of four needs to earn over $89,000 per year just to afford basic necessities. These “basics” include housing, food, utilities, childcare, taxes and a smartphone plan, but do not include additional expenses like school supplies, student loan payments, dining out, visiting a museum, or travel.
As a result, a total 131,809 Tri-County households - or 39% - were living paycheck to paycheck, according to a new update from Trident United Way and its research partner United For ALICE.
That calculation includes the 35,898 households living below the Federal Poverty Level, as well as another 95,911 households, as defined as ALICE (Asset Limited, Income Constrained, Employed), earning above the Federal Poverty Level but less than what’s needed to survive in the current economy.
The 2022 report, ALICE in the Crosscurrents: An Update on Financial Hardship in South Carolina shows that while wages were increasing, costs were rising faster. For a family of four with an infant and a preschooler, the basic cost to live and work in Charleston County rose from $70,716 in 2021 to $89,004 just one year later. Compounding the issue was the 2022 loss of up to $15,000 in federal child tax credits and stimulus payments that many families had access to in 2021.
“There is no doubt that bigger paychecks have helped our local families,” said Trident United Way President and CEO DJ Hampton, “but the combination of inflation and the loss of pandemic supports in 2022 has kept ALICE trapped in a cycle of financial instability. Trident United Way is taking this data and putting it into action for our community. We are awarding many of our Changemaker Grants to nonprofit partners who support ALICE families, and we will continue to work at the local and state levels to advocate for hardworking families and individuals in the Tri-County.”
The findings in this one-year period are consistent with a more than decade-long trend: since the end of the Great Recession (2010-2022), despite some ups and downs, the number of ALICE households in South Carolina has continued to grow. During this period, the total number of households in the state increased by 21%, the number of ALICE households increased by 44% and households living below the Federal Poverty Level remained relatively flat (up 1%).
“The data is showing persistent and widespread financial hardship — a red flag that the current system isn't working for ALICE,” said Stephanie Hoopes, Ph.D., United for ALICE National Director. “Current policy has not been enough to break down the barriers that trap ALICE households in financial hardship, including lack of access to affordable housing and childcare, to inadequate community supports such as broadband internet."
Additional insights from the report include:
- From 2010 to 2022, people aged 65 and over were the fastest-growing age group in South Carolina — and the group with the largest increase in the number of households struggling to make ends meet (up 55%).
- Racial disparities persisted in the rates of financial hardship; 62% of Black and 53% of Hispanic households in South Carolina were living below the ALICE Threshold in 2022, compared to 38% of white households.
- Food assistance continued to elude many vulnerable families in South Carolina. Partly due to the SNAP income eligibility level in the state (130% of the Federal Poverty Level), public food assistance was not accessible to all households that were struggling financially. Only 36% of all South Carolina households living below the Federal Poverty Level and 14% of all ALICE households participated in SNAP in 2022.
If you are ALICE and in need of financial assistance, please call 211 or visit a Trident United Way Resource Connection Center to find out more about available resources and support.
To read the updated ALICE data and access interactive online dashboards that provide data on financial hardship at the state, county and local levels, please visit UnitedForALICE.org/South-
