Tough times: Paychecks don’t always make ends meet

August 6, 2026

On a July afternoon when the temperature climbed to a broiling 100 degrees, a neighbor—let’s call her Rosie—pulled into the parking lot of the Capitol Park neighborhood community center in Dover. She had just finished working as a home health aide.

Still wearing the shirt with her company’s logo, she stepped just inside the door. With her hands clasped in prayer, she pleaded, “Do you have any food?” Before anyone could answer, she apologized and explained she needed food for her five children.

In her rapid-fire explanation, she shared that she has seven children. One was spending the summer with a relative in another state.

Another had moved in with a nearby family member. With each change in her household, her SNAP benefits were reduced.

Rosie’s story is deeply personal, but it is far from unique. Across Delaware, thousands of working families are making impossible choices every day – earning paychecks while still struggling to afford basic necessities.

These households fit under the ALICE umbrella: Asset Limited, Income Constrained, Employed, experiencing some of the greatest hardships bolstered by the high cost of living. 

While those socioeconomic labels may accurately describe their circumstances, there’s little to ease daily struggles.

When Working Isn’t Enough

You may know a family like Maddie and Jake —not their real names—who are working hard yet struggling to meet the cost of basic living expenses. They visited one of our Healthy Pantry Centers recently. Though they tried to mask the stress associated with their struggles, they shared the growing challenges of trying to make ends meet.

Families like theirs – and Rosie’s – are not exceptions. They represent a growing number of Delaware households who are working, earning incomes, and still face deep financial insecurity.

They represent 31 percent of Delaware households who fall into the ALICE category. The 2026 report, The State of Alice in Delaware, supported by United Way of Delaware and United for ALICE, highlights the realities facing these households.

Both parents work at a local grocery store and alternate shifts so one can care for their 5-year-old son. They pay $2,000 a month for a modest two-bedroom apartment and moved to Delaware to be near relatives who could help with childcare.

Recently, those relatives moved out of state. Suddenly, Maddie and Jake had to scale back their work hours to cover after school care, then pick up opposite night and weekend shifts to keep their income steady. They juggle the cost of maintaining a single car, rising utility bills, and the constant fear of an unexpected expense that could push them over the edge.

Based on 2024 findings, this year’s 20-page report documents the continued increase in the cost of necessities:
• Single adult survival budget: $34,908 → $37,668
• Family of four survival budget: $97,356 → $100,272

For many, the financial insecurity runs even deeper. According to the same report, 11 percent of Delaware households lived below the Federal Poverty Level in 2023. Combined, 40 percent of Delaware residents live below the ALICE threshold or in poverty.

Add to that, Feeding America released new data last week: 1 in every 7 Delawareans lives with food insecurity; 1 in 5 children is food insecure. Working Delawareans are struggling to purchase adequate food for their families.

Federal poverty measures do not capture the full picture. ALICE data shows the gap between income and the actual cost of living.

Despite their essential role in the economy, ALICE families have often been overlooked. The recent data represents more than rising costs.

The numbers count families making difficult decisions every day about rent, groceries, transportation, child care, and unexpected expenses.
“They [ALICE households] used to be called ‘the working poor,’ but that is a negative misnomer,” said Dan Cruce, Chief Operating Officer at United Way of Delaware and a State Senator for the First District. 

Building a Path Forward

United Way of Delaware has become a strong advocate for raising awareness about families who earn above the federal poverty level yet still cannot afford necessities. Like Maddie and Jake, and also Rosie, many seek support from the Food Bank of Delaware and other social service agencies.

In addition to providing food for Delaware residents in need, the Food Bank of Delaware seeks long-term solutions, offering free workforce training programs in the culinary and warehouse/ logistics fields from both our Milford and Newark sites. Graduates can be placed in entry-level positions, with opportunities for advancement in new careers.

Even when family earnings increase, the path to stability is not always straightforward. Small changes in household income or circumstances can cause families to lose access to programs such as SNAP or income-based child care assistance. It’s also difficult to avoid one of the biggest obstacles ALICE families faces: the “benefits cliff.” Rosie, for example, experienced a shift in the number of people at home.

Many don’t realize they’ve crossed the threshold – or over the cliff — until the support disappears, often when they need it most.

Financial pressures facing working families extend beyond Delaware. National research shows that many households are increasingly relying on credit cards and emergency savings simply to purchase groceries and cover daily expenses.

Urban Institute released findings in July showing that 1 in 4 working adults paid for groceries with a credit card; 1 in 5 paid for groceries with savings not intended for daily expenses. The same research indicated that 12 percent struggle to make the scheduled minimum repayment.

Assistance is available through financial literacy support. One such program is Stand By Me, a free, one on one financial coaching service that helps Delawareans build financial literacy and confidence.

The Food Bank offers Stand By Me counseling through two coaches; one works out of our Newark site, and the other is based downstate. Neighbors who have enrolled in the program meet with coaches, experience positive, life-changing success.

One of our Stand By Me coaches, Ray Rojas, reports he receives calls from neighbors who have purchased food using a credit card, but they are only able to make partial payment.

Often, it’s when debt collectors start calling, neighbors reach out to Rojas for assistance. They want the calls to stop.

“I advise them to pay the bills before they are due, but that’s a challenge. With the increased cost of food, it’s almost wishful thinking. It’s a struggle for people to figure out how to pay, and higher prices are the status quo now,” Rojas said.