JANUARY 2021
Four Impacts COVID-19 is having on low-income Americans
Fresh EBT is a free mobile app that helps over 4 million low-income families manage their SNAP benefits. Through the app, users can access daily savings, income-eligible programs, and local employment opportunities, all available from partner organizations.
Conducting monthly surveys
Undeniably, the COVID-19 crisis is having a devastating impact on low-income Americans. To understand how the circumstances in the lives of Fresh EBT users are changing, we have been conducting surveys each month. In sharing the key insights below, we hope that individuals, organizations, and businesses will better understand the changing needs and realities of low-income families and step up for those in need.
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January 2021 key findings
The following insights come from a 6-minute multiple choice and open response survey conducted by Fresh EBT to a random sample of 5,700 Fresh EBT users from January 1 - 14, 2021. All respondents are EBT cardholders.
INSIGHT 01
Respondents are still facing high levels of food and housing insecurity, though the $600 stimulus payment is making a difference.
Source: Random sample of Fresh EBT users
In the past 30 days:
~41%
of respondents reported some level of housing uncertainty, the same level as in December.
For those who received the $600 stimulus:
Housing uncertainty drops to 32% with $600 stimulus
INSIGHT 02
Only 30% of respondents received the $600 stimulus payment, and even fewer Black respondents did.
Source: Random sample of Fresh EBT users
Only about 30% of respondents received $600 payment
Black respondents were much less likely to have received the $600 payment -- 22% of Black respondents vs 38% of white respondents.
How the $600 was spent:
65% paid bills, rent, etc.
10% bought household items or hygiene supplies
6.4% bought food
5.7% paid down debt
3% put into savings
2% purchased or repaired a car
1% invested in home or new living situation
INSIGHT 03
Respondents are relying on the same network for money, food, childcare, etc.
Source: Random sample of Fresh EBT users
Over 57% reported borrowing money or using credit to cover expenses in the last 30 days down from 60% in December
Users are overwhelmingly borrowing from their personal network (family and friends):
76% family and friends (85% need to pay back)
22% credit card
12% payday loan or pawn shop
11% church or community group
5% advance on paycheck
2% GoFundMe or fundraiser
Black respondents more reliant on family and friends; less on credit (17% use credit cards vs 27% of white respondents)
Borrowing from friends, family, and coworkers:
My uncle loans me money there is not a set pay back day just when I can and I usually give him more than I borrowed if he has to wait long for the money
SNAP Participant, January 2021
North Carolina
My family has been very helpful borrowing me money when I need it. I’ve tried to not ask because they are also struggling.
SNAP Participant, January 2021
Wisconsin
I feel horrible borrowing from anyone.
SNAP Participant, January 2021
Georgia
INSIGHT 04
Since March 2020, SNAP benefits aren’t going as far and respondents are eating less healthy foods.
Source: Random sample of Fresh EBT users
The pandemic has changed the way SNAP recipients eat:
43%
could not buy as much
31%
have to buy less healthy foods
25%
buy more packaged foods
25%
cannot buy brands they like
14%
rely on food pantries
Over 54% reported spending $100 or more on food beyond SNAP benefits each month
Whatever the stamps can give me, pricing of food in my area is going up because of the stimulus food places are rasing prices.
- SNAP Participant, January 2021
What an extra $50 per person in SNAP would mean:
Some nights I don't eat due to not having enough food, so 50 would be a big help deciding rather I eat or not. My children always eat before I will.
SNAP Participant, January 2021
Florida
It would guarantee that I eat every meal to be healthy. At least twice daily.
SNAP Participant, January 2021
New York
It will save cash that I need for prescription meds prescribed for my mental health.
SNAP Participant, January 2021
Arkansas