Long Lines at the Grocery Store on the 5th

May day is lei day in Hawai'i. For many the first of the month is a breath of fresh air, a chance to start new at the beginning of the month. For me it's a reminder that I need to do my grocery shopping in the next 2 days in order to beat the crowded parking lots and aisles and long lines. I always wondered why the grocery store was always so packed when it came to the 5th of the month, until I realized that the 5th is the day when welfare recipients receive their benefits via their EBT cards.

Then the question dawned on me, why do these families fill up their wagons to the brim so early in the month? Do they not know how to budget their food stamps to last them throughout the month? After talking to a few friends of mine who previously received food stamp benefits, there are more than one reasons why the grocery stores are so crowded on the 5th.

The first is what I suspected, lack of budgeting skills. Some families spend all their food stamps at the beginning of the month and their pantry's are bare come the end of the month that they need to re-stock as soon as their EBT cards are reloaded. My solution to this issue is to provide budgeting classes to those who receive welfare benefits.

The average Food Stamp benefit per person in the state of Hawaii is around $215.00. That means a family of 4 will on average receive $860.00 in benefits. In this example, if a family spends most of their food stamps at the beginning of the month, then they are spending over $500 on one shopping trip. The question of food storage and nutritional choices also comes to mind, but that is a whole different blog topic.

The lack of proper budgeting skills also raises the question about the habits that some families are forming because of their food stamp benefits. If I was GIVEN (not earned)  in excess of $500 a month to feed my family of three, I would have a field day at the grocery store, I wouldn't have to shop the sales or plan my shopping trip to the penny. I would pretty much be able to walk around the store grab what looks good and probably still walk out with a decent balance on my EBT card. Since there is no time limit on receiving Food Stamp benefits, this practice at the grocery store becomes habit. So when I no longer qualify for welfare benefits, I am forced to pay for my groceries with the money I earn. Chances are I won't have $500 in discretionary income to spend on groceries each month, but the habits that I have formed over time because of the lack of budgeting skills will hinder me from making smart choices at the grocery store and make it difficult for me to feed my family. This example does not apply to all families who receive food stamps, but I do know that this problem exists.

Another reason why the grocery store is overcrowded at the beginning of the month is because of the illegal activity of selling excess food stamp balances to others in exchange for cash. For example, I have worked with a family of 4, a mother, father and 2 young children under the age of 5 who receives $989.00 a month in food stamps. This family also receives WIC and is expecting their 3rd child in a few months. This family does use the entire $989.00 to feed their family, therefore they are left with an excess balance of $300 to $500. Because this is a similar situation for many families, some families resort to selling that excess balance in exchange for cash to be able to spend the money on other things that they would not be able to purchase with their EBT card.

In my opinion, the welfare benefits system needs to be revisited. I understand the positive benefits of the welfare system for those who really need it and do not abuse the system. However, I am very aware of what really goes on with some welfare recipients. To me many are GIVEN these benefits which are meant to help them become self sustainable, but in turn only causes the cycle of poverty to continue.

Yet, another reason why I am an advocate for Financial Literacy and Education. Other states require welfare recipients to take budgeting and basic personal finance classes in order to receive their benefits, my goal is to bring this requirement to the State of Hawaii. I know that it will take time, but I know that it will only benefit the people of our state and rise many people out of the depths of poverty.

*Disclaimer: This blog is my opinion and is no way written with the intention of offending anyone.