The ALICE methodology uses average spending to represent minimum costs and relies on estimated financial needs of atypical households to represent the average needs of all households.
Even if these reports properly factored in the different spending needs of households based on their size and other factors, there are still problems with how the reports estimate minimal financial needs. The hypothetical budget thresholds created in the report to determine if a household should be labeled ALICE rely on questionable assumptions that the report does not justify, and the results overstate how many households are struggling financially.