YES! In PA you are not allowed to have more than $2000 in combined assets. This includes life insurance, savings/checking accounts of all adults AND children in the household. They can even make you sell your vehicle if it is worth more than $2000.
Therefore, people learn to spend everything that comes in because they have no reason not to, and never learn to save money by purchasing food they cook themselves or shopping at cheaper stores because they have no reason to do so.