I want to make some additional explainings here.
Currently, you are holding a residence permit according to section 34 (3)/"Children's right of residence" of the German Residence Act which says:
(3) The temporary residence permit may be extended as long as the conditions for granting the permanent settlement permit and the EU long-term residence permit have not yet been met.
The process of the naturalization is a bit more complicated and we have to differentiate here between the so-called "Anspruchseinbürgerung" (having the formal right to get the German citizenship) and the "Ermessenseinbürgerung" (the decision on the application will be at the discretion of the authorities). The important difference is here the type of residence permit you are holding when applying for the naturalization. If you are holding a permanent settlement permit (Niederlassungserlaubnis), you may fulfill the requirements for the "Anspruchseinbürgerung". Then, the conditions mentioned by Julia_K apply. However, since you are currently holding a temporary residence permit, I am afraid that the authorities will grant the citizenship only in very very rare exceptions, as long as you are receving social benefits.
I hope this helps and please don't hesitate to get back to us with any further questions.
All the best,