I don't know what it's like now, but in the 1980s, we received aid, and you certainly couldn't live on it. It was a horrible existence. Yeah, we'd sometimes game the system. For instance, we knew if we bought something for $4.01, we'd get the $0.99 change back as cash. We'd trade vouchers for cash sometimes (to, say, put kerosene in the heater) But, we're only talking about gaining a few hundred dollars a year. If people in your social circle are living large, I'd love to know their trick.
Yeah as I said in another comment, it's a mostly miserable experience on the kids and yet some garbage humans do decide to live strictly off of it. I'm not sure how we could disincentivize that, but I do think means testing should go.
The people I have seen who really milk the system work for cash, live with their boyfriend/SO and remain unmarried to keep the benefits coming (and just lie saying that the father isn't in the picture). So the burden of healthcare/food/rent is on the state and all of the income is fun money. Trucks/SUVs, jewelry, trips, rental houses, etc. follow. The kids only benefit as far as not starving, but they get free food at school/day care most of the year anyway so most stamps get sold. There's some who do very well and just stop caring about TANF anyway because it's overall pretty low value.
Another I've seen is just lying on the application so they get their benefits (I imagine similar to the others they say their husband/SO isn't in the picture) while they have a steady income stream from renting out their house.
