How to save money: You may qualify for food stamps even if you think you're too rich
Filed under: Budgets, Food, Saving Money, Wealth, Economizer
Not every WalletPop suggestion on how to save money is meant to help you save for a Caribbean cruise; many are lifelines to those of us struggling to even pay the rent and put food on the table. If you're among the more than one in 10 willing workers still looking for a job, or trying to keep your family together on a dramatically reduced income, you might find help you'd never expected from the government. A growing number of Americans are eligible for the most-used safety net in our social service network, food stamps.
You already know people trying to find ways save money by collecting food stamps, although you probably don't know that they do. For the middle class, the program still carries an unfair stigma suggesting failure of effort or will. Get over it. The program, now called the Supplements Nutrition Assistance Program (SNAP), was used by almost 35 million people in May, saving many children, elderly and disabled from malnourishment.
If your family is in need due to the worst recession in 75 years, it's time to swallow your pride and do what's right for their well-being, and food stamps could be a part of that effort to figure out how to save money. Once you're back on your feet, you can always donate to the local food bank to bring your karma back into balance.
How do you know if you are eligible for this government-sponsored way to make money? The program is administered by your state government, which has offices and web sites to help you make that calculation. But here are some facts to consider:
The program is available not only to families living together, but to any group of people sharing a household and buying groceries together. Take a note of that, you college grads sharing a house and working for minimum wage. To qualify, the household gross income must fall below 130% of the federal poverty level. For a family of four, this ceiling in 2009 is $2,389.
The amount of the benefit is based on net income. Starting with your monthly gross income, you can subtract household expenses, work expenses and some of your payroll taxes, child support payments, child-care costs if you need it to free yourself up for work or training, dependent care expenses and other costs. The elderly and disabled can subtract a portion of their medical expenses, and farmers can deduct some farming losses.
To be eligible, households may not have more than $2,000 in assets, including bank accounts, cash, bonds, other houses and property, and such. However, many assets don't count toward this total, including retirement and education savings, autos, tradesmen tools and farm machinery, the home you live in, other properties you own from which you get rent, and various other kinds of holdings.
How hard is it to qualify? And how do you save money?
- A person working at Starbucks 40 hours a week for $10 an hour, grossing roughly $1,600 a month, and sharing a house with a spouse earning $500 and two children, qualifies.
- Two young musicians sharing an apartment and grossing less than $1,579 qualify.
- A son or daughter living with a elderly parent who has high out-of-pocket medical expenses can qualify regardless of gross income, if the deductions drop the household net income to $903 or less.
How much could a recipient receive? The amount is calculated by multiplying the net income by .3 and subtracting from the maximum monthly allotment. Our example family of four living off a Starbucks salary and some side income, grossing $1,600 month, may have a net income of only $400 after deducting rent, child expenses, payroll taxes, and other factors. Multiply $400 by .3 = $120. Subtracting this from the maximum monthly allotment for a family of four and this family could be eligible for $548 a month in food stamps. This could make a huge difference for them.
This money can be used to buy most any grocery store food item except alcohol, tobacco, pet foods, toiletries, household items, meds, food that will be eaten in the store, and hot food.
One of the great things about our country is our compassion for one another, demonstrated by our social programs designed to help provide a safety net to those who fall on hard times. These are extraordinary hard times, and for the welfare of their families, many Americans wondering how to save money are finding an answer where they never anticipated they would; food stamps.
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Reader Comments (Page 1 of 2)
9-03-2009 @ 1:13PM
Raejean said...
My aging brother, who has heavy medical expenses and receives only a Social Security disability income, lives in his own household and struggles to meet his modest rent, receives a WHOPPING $12 a month in food stamps. It was almost not worth filling out all of the paperwork and appealing the initial denial because the case manager couldn't do basic math. What a joke.
Reply
9-03-2009 @ 4:45PM
Keith said...
Not as easy as this article implies. If you're single and unemployed, but struggling to make your unemployment check keep you going, surprise...that unemployment check will likely make you ineligible.
Reply
9-03-2009 @ 9:39PM
jade said...
Thats not true. I'm on unemployment and a couple months ago I applied for food stamps and was eligible.
9-03-2009 @ 1:47PM
nancy said...
you make 2,000 a month (net) your rent is 1500. a month, plus electric,gas, heat, medical, and you are only alllowed 16.00 a month in food stamps in massachsuetts. they cap your rent to 446.00 a month. ( you can't even find a place in the state to rent at 446. a month) they use your totally gross(even though you never see that money) now that is with a family of 5. thanks massachusetts!
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11-15-2009 @ 2:24PM
joanne said...
i hope you know better to vote demorat in ma
the state treats working families so bad
they should give you more in food stamp vouchers
you are working and paying taxes
9-03-2009 @ 3:09PM
Kathy said...
Was just about to say they don't base it on what you actually bring home, they base it on what you make. Yes, on money we never see. How stupid is that? How frustrating is it to be in line with your basket of groceries that you only had $100 to spend on and have someone with 3 baskets full and pay for it all in F/S? Then they go out and get into their BMW
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9-03-2009 @ 3:38PM
Cher said...
In Virginia: Disabled under 65, income $800 monthly, living in own place, many medical costs, qualify for $11 in food stamps. Oh and by the way when we USED to get an anual increase of maybe $14.00 monthly that would drop my food stamp down by at least $9.00-- loaf of bread, gallon of milk and dozen eggs pretty much kills that!
Social Security is capped for the next 3 yrs... no cost of living increase... but who would call that living anyway??!?
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9-03-2009 @ 4:16PM
Candy said...
You sometimes have to lie, because government don't want to give people that much money in food stamps. I know it is wrong, but I'm doing what I got to do in order for my family to survive and to get back on my feet.
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9-03-2009 @ 4:15PM
J.Do3 said...
I really dont want a damn thing from 'my' government except all the Social Security that I paid for the last 40 yearsfor me plus interest in a lump sum 'bailout' for me.
Then I dont have call on the government at every beckoned call for anything.
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9-03-2009 @ 5:20PM
pissed said...
51 yrs old worked 31 yrs. laid off for over a year now have two children. Applied for food stamps was told that oldest child doesn't qualify because she is a full time student at a tech college, lives at home and works 10 hrs a week.[that money goes to pay tuition,and books] I was told if she had a baby she would qualify. What a crock of sh---it. Its been 2 months and I still don't know if I'll get anything.
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9-03-2009 @ 6:00PM
gamay9 said...
If you don't qualify for food stamps the Salvation Army has food pantries. I'm a single person on a fixed income and I qualify at a gross income of $2,200 monthly.
Only problem is, the selection is poor and not fit for diabetics. Neither are the free meals, which are loaded with startch and carbs. Best thing is to be picky and not eat things that inhibit your health. Our well-being is more important than money.
As for 'pissed' I share your concern. You are 51, but 30 year olds with multiple degrees can't get jobs. I'm 67 and retired but I was making $6,000 per month when I retired; now I'm at 1/3 of what I made when I was working. Can you imagine those who retired at $25,000 per year? Forget 'The Villages.' I can't even do that.
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9-03-2009 @ 6:27PM
Laticia said...
I gets $14.00 per month in food stamps and I only make 8/hr wit 3 kids. My Escalade payment is $750 per month. Hows do they think I can aford to feed them?
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9-03-2009 @ 6:37PM
Mindy said...
Laticia: sell the Escalade and buy food...you could save 750 a month by selling it and buying something for around 200 to 300 a month and still have a reliable vehicle.
9-03-2009 @ 9:20PM
Shocked said...
I think you have your priorities in the wrong place. That $750 goes along way for groceries. If you can afford an Esclade you shouldn't even qualify for any assistance.
9-03-2009 @ 11:20PM
Pat said...
GET RID OF THE SUV! Your kids are more important than a suv try getting a compact front wheel drive car. your payments won't be $750 and you save money on gas. I have a pretty good job and l wouldn't even think of buying a suv. WAKE UP!!!!
Then you might have money to feed your kids.
9-03-2009 @ 9:12PM
marshall said...
Only Americans have trouble getting benefits
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9-03-2009 @ 9:16PM
marshall said...
Im really glad my taxes are going to someone with an escalade. Glad your buying American. Im not so good. The subway trian I take every day was made in Japan.
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9-03-2009 @ 11:15PM
Mike said...
I make over 100 grand a year with 4 kids and a wife that work.
And I can not afford a Escalade.
And I would like one too
I am going to see if I can get me some Food stamps
Reply
9-03-2009 @ 10:03PM
sick of lazy people said...
I work in a grocery store and am sick and tired of seeing families teach their kids how to live on food samps and government assistance. I have had grandmothers,mothers and children all with their own EBT card. I have seen people buy groceries for more than one person, by this I mean she actually went to three different checkstands and used her card for her friends groceries. They also buy alot of junk food . I think assistance is great for those who really need it ,but there are way to many people out there that just take advantage of a good thing and I think that it is the governments fault for not regulating it better. The cash portion of the EBT people can buy cigarettes loto tickets and alcohol even though it is ment to buy thing that the food portion does not allow.
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12-02-2009 @ 8:37AM
mandy said...
agreed!!!! i have 3 kids and in the winter my husband gets layed off(hes a roofer) and we get food stamps just for the few months. i use mine very wisely. fruits veggies and meats. no junk food in this household. but i do see others buying candybars and soda??? i dont get it!