This monograph used a qualitative orientation to examine the inadequacy of public assistance income in New York City as it affects material conditions among welfare families, their attempts to mitigate the negative consequences of income inadequacy through coping strategies, and the broader social environment within poor communities. The data consisted of analysis of 100 hours of scripted interviews with 36 female parents in households where Aid to Families with Dependant Children was the primary income source. Findings include the following: (1) families transfer funds from housing into other needs with a consequent negative effect on housing quality; (2) respondents pool food stamps with other families and many buy food on credit; (3) two-thirds of the respondents cannot keep growing children appropriately dressed for school; (4) within limits posed by their socioeconomic status, families maximize their resources through a rational decision-making process; and (5) many experience social isolation. The paper offers eight policy recommendations based on the study's findings. Statistical data are provided in 15 tables. Included are 37 footnotes and 6 appendices containing interview forms, tables showing selected demographic characteristics of interviewees, data on a comparison study sample, data concerning the incidence of reliance on coping strategies (food category), a survey of children's discount clothing stores, and a summary of survey results of layaway policies of selected stores. (JB)