Money is consistently a concern for many households in Hawai?i, where Pua?ena Vierra and her spouse find themselves accumulating credit card debt just to cover essential expenses such as groceries and medical bills after paying their rent. They represent a significant portion of the population in Hawai?i, as approximately 25% of households overspent their incomes in 2024.
To address the financial imbalance, families have resorted to various strategies, such as tapping into savings, relying on credit cards, minimizing spending, taking on additional work, selling personal items, borrowing from friends or family, and even utilizing bank loans or overdrawing their accounts. This concerning financial situation is part of a broader issue highlighted in a report from Aloha United Way, which emphasizes that 40% of residents in Hawai?i are either barely coping or are struggling to survive. The report indicates that the issue is especially pronounced on the less populated islands, particularly Maui.
The purpose of the nonprofit’s report is to shed light on the economic struggles faced by those living in hardship, including not only individuals below the poverty line but also those who, despite being above it, continue to face financial challenges. This latter group is termed ALICE, which stands for asset limited, income constrained, and employed. Vierra, who resides in Pearl City, epitomizes the ALICE experience. Five years ago, she and her wife were each holding down two jobs — Vierra as a preschool teacher in a Hawaiian immersion school and as a delivery driver, while her wife worked at a grocery store and as a family support specialist for a nonprofit organization. However, their lives took a turn for the worse due to medical issues arising from her wife’s pregnancy, which led to a significant financial struggle.
As emergencies compounded their situation, Vierra’s financial insecurity grew more severe. She took time off from work to care for her baby and enrolled in school again to enhance her earning potential. This educational path also allowed her son to attend a school tailored to his medical needs. She later found employment as an in-home childcare provider and managed multiple changes in living situations, moving in with family before securing their separate apartment.
Health insurance was intermittent for the family of three, often leading Vierra to take unpaid leave and bear out-of-pocket costs for her son’s healthcare needs. As a result, their financial burden increased. “Honestly, my wife and I are just struggling to survive,” Vierra remarked. “We don’t ever have time for ourselves. It’s exhausting and takes a toll mentally and physically.”
The current federal poverty level for a four-member household in Hawai?i is slightly beneath $36,000. However, the ALICE Initiative from Aloha United Way suggests that a household survival budget—which covers essential needs like housing, childcare, food, transportation, healthcare, taxes, and communication technology—exceeds that figure, costing $107,795 for a family of four. The report highlights that there are approximately 560,000 residents—over one-third of the population—living below the ALICE income threshold.
While the data presented does not offer any positive insights, it emphasizes the crucial importance of understanding these economic realities, according to Peter Ho, Bank of Hawai?i CEO, who financially supports this report and the ALICE initiative. The slight reduction in the poverty rate—from 14% in 2022 to 12% in the previous year—was noted as the report’s only silver lining, yet it too comes with bleak implications. Some of this decrease may be linked to pandemic relief measures, the return of families to work post-pandemic, and a state minimum wage increase set to reach $18 per hour by 2028.
However, there is a disheartening perspective that the decline in ALICE numbers might also stem from families leaving Hawai?i altogether, as noted by Aloha United Way’s COO, Suzanne Skjold. The idea of relocating has crossed the minds of Vierra and her wife. “We have considered this option for several years, but we want to make things work and remain in Hawai?i,” Vierra explained. “I’m Native Hawaiian. My son is Native Hawaiian, and he attends a Hawaiian immersion school. Our connection to culture and place relies on living here.”
Financial burdens prompt families to contemplate leaving Hawai?i, with the report indicating that 29% of families find themselves above the poverty line but beneath the ALICE survival budget. Additional findings reveal that nearly one-third of residents aged 18 to 34 fall within ALICE parameters, as well as one-third of those over 65. Moreover, half of the households with children, 58% of Native Hawaiians, and 52% of Filipino residents experience financial instability below the ALICE threshold.
Women are particularly impacted, with nearly half living in ALICE households, compared to approximately one-third of men. Alarmingly, over 40% of families with incomes below the ALICE threshold expressed concern about being pushed out of their homes within the coming year. The ongoing financial strains are a significant point of discussion, emphasizing that it’s a communal issue that requires collective action, as pointed out by both Ho and Honolulu Mayor Rick Blangiardi.
Skjold expressed that the rising costs of living, particularly housing, exacerbate financial insecurity, consequently propelling residents to consider leaving the state. The report notes that 37% of families surveyed are contemplating relocating, with 73% citing housing expenses and 85% attributing their concern to the overall high cost of living.
To combat these economic challenges, Aloha United Way, in collaboration with the Hawai?i Community Foundation, has invested about $11 million in various nonprofits since 2019. These organizations address a multitude of issues tied to financial instability, from healthcare to homelessness and educational needs. According to the 2024 Aloha United Way ALICE report, residents in neighbor islands face heightened struggles.
Skjold elaborated that data from this and previous reports informs Aloha United Way’s engagement with around 20 nonprofit partners. She emphasizes the necessity for these organizations to not only serve individual clients but also work collectively to affect systemic change. The report underscores the pressing threats of out-migration among families in search of better opportunities amid the prevailing economic climate. In response to rising living costs, recent labor disputes among hotel workers and nurses highlight the urgency for a fair wage structure to quell ongoing tensions in the workforce.
The report also confirms that people inhabiting neighbor islands experience a greater likelihood of falling below the ALICE threshold, with post-wildfire Maui seeing about 53% of residents dealing with financial hardships as defined by ALICE metrics. Prior to the devastating fires, economic distress was already prevalent, with many families in Maui County paying over 30% of their incomes toward housing, a condition deemed “cost burdened” according to federal standards.
In light of the significant challenges revealed in this report, policies targeting ALICE households—such as paid family and sick leave, debt relief, job training, and increased mental health support—are crucial. Vierra has recently taken an active role as a family advocate in the Ohana Leadership Council, where she engages with legislators to push for essential measures such as paid family and sick leave. She plans to attend the legislature’s 2025 opening session to emphasize the urgent need for financial relief for residents.
“I’ve never been involved in this before,” she acknowledged. “I feel supported and empowered to take these steps, especially as a Native Hawaiian.”
