1 Of 5 In Moorestown Struggle To Make Ends Meet: Report

MOORESTOWN, NJ — Despite Moorestown's high median-household income, a significant number of township residents have struggled to make ends meet in recent years, according to new data. And for many, those challenges preceded the economic turbulence of the pandemic.

Nearly 1 of 5 Moorestown households struggled to afford the basics during the COVID crisis, according to a report released last April by nonprofit United Way of Northern New Jersey.

United Way quantifies financial difficulties by determining a locale's rate of "ALICE" households, which stands for Asset Limited, Income Constrained, Employed. United Way of Northern New Jersey coined the phrase in 2009 to represent those living paycheck to paycheck.

"ALICE" households make more than the poverty line but less than what's necessary to afford basics in their area. United Way of Northern New Jersey contends that ALICE families — many of which had "essential workers" who helped their communities through the COVID crisis — are overlooked and undercounted by traditional poverty measures.

In 2021, 19 percent of Moorestown families didn't make enough to afford the basic cost of living, including 5 percent of residents below the poverty line. However, Moorestown recorded a lower rate of households below the ALICE threshold in 2021 than 2018 — bucking the trends of New Jersey and much of the nation. According to United Way, 20 percent of Moorestown households stood below the ALICE threshold in 2018.

The township, however, showed a higher rate of residents below the poverty line — 4 percent in 2018, compared to 5 percent in 2021.

Statewide, the number of households experiencing financial hardship grew by 14 percent — an increase of 157,000 households — between 2019 and 2021. By that point, 1.3 million New Jersey households struggled to afford basics, including 368,639 in poverty, according to United Way.

But United Way of Northern New Jersey says the COVID-related economic crisis would've been more difficult if not for a combination of pandemic supports and rising wages.

"It could have been so much worse for these families, whose struggle to feed their families, afford health care and access quality education was often hidden in plain sight until the pandemic," said Kiran Handa Gaudioso, the nonprofit's CEO. "Equipped with this ALICE data, we can do even better to develop effective policies and track our progress toward reducing financial hardship in New Jersey."

The cost of living has risen, as well. According to the report, the basic cost to live and work in New Jersey rose by 16 percent for a single adult to $33,984 and by 13 percent for a senior citizen to $38,328.

Costs increased 10 percent for a family of four with an infant and a preschooler. But the Child Tax Credit and Child Dependent Care Tax Credit helped soften the blow, bringing the "survival budget" down to $82,176, the report says. Without those credits, United Way says the budget would've reached as high as $98,000.

The report comes from United Way of Northern New Jersey and its research arm, United For ALICE. View the full report here.