The average cost of raising a child from birth to age 17 in a married two-parent middle-income family with two children is $233, 610, which is equivalent to $286, 000 in 2022. The cost of raising a child from birth to age 18 is around $12, 980 per year for a middle-income family. In some states, a family of four needs to earn at least $100, 000 to get by, according to a new analysis.
The Living Wage Calculator helps individuals, communities, employers, and others estimate the local wage rate that a full-time worker requires to cover the costs of their family. The top 10 countries where it’s most affordable to raise a family are the South or Midwest, with Oklahoma, Alabama, and Oklahoma being the cheapest states to live as a family of four. In Hawaii, the living wage for a married couple with two children is about $16, 500.
The federal poverty cutoff for a family of four is $23, 850, which is about half of what a family of four would need to get by in the US. An out-of-work family with two children has less than half the income required to meet the cost of a minimum acceptable standard of living (39%) in a couple family.
The average cost of raising a child to age 17 is $310, 05, with the average estimated cost to raise the average child to adulthood being $310, 000. The median household income is approximately $74, 000. Families with two working parents raising two or three children will need $150, 578 and $176, 107, respectively. Based on USDA’s annual cost estimates, families can expect about $5, 235 going toward housing alone each year.
A family of four typically needs between $40, 000 and $60, 000 per year to cover basic necessities like housing, transportation, and food. In the US, the average cost of raising a child from birth to age 18 is $237, 482, according to a 2023 study.
| Article | Description | Site |
|---|---|---|
| What annual income would allow you to comfortably raise … | The average estimated cost to raise the average child to adulthood is $310,000. The median household income is approximately $74,000. Some quick … | reddit.com |
| Minimum Income Needed to Support Different Family … | Families with two working parents raising two or three children will need $150,578 and $176,107, respectively. | smartasset.com |
| Family Budget Calculator | EPI’s Family Budget Calculator measures the income a family needs in order to attain a modest yet adequate standard of living. | epi.org |
📹 SHOCKING: You Need HOW MUCH Money to “Live Comfortably” in Each State?!
With inflation still on the rise, Glenn and Stu review another shocking number: how much money you need to “live comfortably” in …
How Much Money Does A Family Of 4 Need?
A family of four faces significant income requirements based on their U. S. state of residence, with Hawaii being the most expensive at $182, 900 needed to get by. According to GOBankingRates. com, the ideal annual income for such a family is $210, 000, while a modest yet comfortable standard costs at least $50, 000 per year. The average monthly expenditure for a family of four totals approximately $8, 460, equating to about $101, 514 annually. Living costs vary widely; many families in more affordable states can manage on less than $79, 000 annually.
For example, Alabama requires about $61, 895, whereas Massachusetts demands nearly $301, 184 for the same family size to live comfortably. The Economic Policy Institute (EPI) provides a Family Budget Calculator that helps assess local living wage needs based on community-specific expenses. Notably, families in the five costliest states often require incomes exceeding $270, 000 to maintain a comfortable lifestyle.
The 50/30/20 budgeting rule recommends allocating 50% of income to necessities, 30% to wants, and 20% to savings, reflecting the diverse financial landscapes families navigate across the United States.
Is 100K Enough For A Family Of Four?
In several U. S. states, a family of four needs to earn at least $100, 000 to maintain a comfortable standard of living, according to recent analyses. While the average household income in the U. S. hovers around $73, 000, families can manage on $100, 000 if they budget wisely and plan their finances together. SmartAsset's application of the 50/30/20 budgeting rule highlights the necessity of smart financial management across states. For instance, in Hawaii, a couple with two children requires significantly more to meet basic needs.
Detailed estimations suggest families typically incur annual expenses between $60, 000 and $75, 000, meaning $100, 000 is sufficient in many regions but may feel tight in high-cost areas. The Culp family's experience illustrates this challenge, as they faced financial strain despite earning $100, 000 due to debt and other expenses. Ultimately, whether this income level is "good" hinges on location, family size, and lifestyle choices. Despite rising costs and inflation, a $100, 000 salary generally positions families above the poverty line and aims for financial stability.
However, in coastal states with high living costs, families often need to exceed this income threshold. For single parents, rising expenses further elevate the required income to meet basic necessities.
How Much Does It Cost To Raise A Family?
Raising a family today can be quite costly, averaging $2. 7 million per child, as reported by the Bureau of Labor Statistics. The USDA's Consumer Expenditures Survey reveals that costs vary by region, with the Northeast being the most expensive. For children born in 2015, the average annual cost is approximately $21, 681, which translates to about $310, 605 by age 17. Child care significantly contributes to early expenses, costing around $631 monthly for full-time care.
The average childbirth cost is $18, 865, with out-of-pocket expenses reaching $2, 854 for those on large group plans. Middle-income families, earning between $76, 106 and $138, 070 in 2023, spent roughly $15, 877 to $17, 869 annually per child in 2015. A recent study indicated that the total cost for raising a child from birth to age 17 ranges from $202, 248 to $430, 928. Essential costs have surged by 19.
3% nationally from 2016 to 2021. Families can expect about $280, 000 to $312, 000 in child-rearing expenses, depending on various factors. Thus, significant planning and budgeting are essential for prospective parents.
What Is The Most Expensive State To Raise A Family Of 4?
Massachusetts has emerged as the most expensive state to raise a family of four, surpassing traditionally high-cost states like New York and California, as detailed in a recent SmartAsset study. A family consisting of two working adults and two children would need an annual income of $301, 184 to live comfortably, based on a 50/30/20 budget. In Massachusetts, the annual cost to raise a child is approximately $36, 000, with childcare alone accounting for around $21, 500.
Connecticut is noted as the best state financially for families, while top states for raising a family include New York, which ranks fourth overall. The study also highlights North Dakota as the most affordable state, with a median home price of $257, 599 and a favorable rent-to-income ratio. In contrast, Washington, D. C. is identified as the worst city for families due to its high cost of living and crime rate.
Other states like Hawaii and New Mexico were also featured among the more expensive locations, indicating a broader trend of rising familial expenses across the U. S. Despite the high costs, Massachusetts scores well in education, affordability, and health safety, contributing to its appeal for families despite the financial burden.
What Is A Good Family Salary?
As of 2023, a household income ranging from $75, 000 to $100, 000 is deemed comfortable for a family of three in terms of living standards, covering essentials such as housing, healthcare, and education. For a family of four, the recommended income should be at least four times the monthly expenses, plus a 20% savings goal, indicating that a monthly spending of $5, 000 requires an annual income of approximately $220, 000. The U. S. median family income is about $125, 700 for four-person families, while for larger families, it stabilizes around $107, 000.
The 50/30/20 budgeting approach suggests allocating 50% of income to needs, 30% to wants, and 20% to savings. Seattle has been identified as an optimal city for families earning median income, significantly exceeding the minimum requirements. The average personal income in the U. S. hovers around $63, 214, with middle-income households earning between $56, 600 and $169, 800. To sustain a comfortable lifestyle, a family of four should earn at least $106, 903 annually.
For single-income families, the median income is about $68, 900, while dual-income households earn about $140, 400. Generally, major cities necessitate near $300, 000 for comfort, while single parents require specific income thresholds depending on the number of children. Households surpassing $500, 000 annually qualify as top earners.
What Is The 50 30 20 Rule?
The 50-30-20 budget rule is a framework for managing your after-tax income by dividing it into three categories: 50% for needs, 30% for wants, and 20% for savings and debt repayment. The needs category includes essential expenses, such as rent, groceries, and bills, which you must prioritize in your budget. The wants category covers discretionary spending on items you desire but don’t necessarily require. Finally, the savings category helps you focus on financial goals and building a reserve for future needs or emergencies.
Developed by U. S. Senator Elizabeth Warren and her daughter, this budgeting method aims to simplify personal finance management. By allocating funds systematically, it encourages a balanced approach to spending, satisfying immediate desires while promoting long-term financial security.
The 50/30/20 rule serves as a guideline rather than a strict rule, allowing individuals to adjust percentages based on their unique circumstances. Understanding the pros and cons of this budgeting technique can help determine if it aligns with your financial goals. For easy implementation, tools like the Omni 50/30/20 calculator break down your income accordingly, enabling seamless tracking of your allocations while facilitating better financial decision-making. Overall, this strategy provides a straightforward way to monitor expenses and savings effectively.
How Much Does It Cost To Raise A Child?
Raising a child is a significant financial endeavor, with estimates suggesting an average cost of around $310, 605 from birth to age 18, amounting to approximately $17, 000 annually. Factors such as income and location influence these costs, with the Northeast identified as the most expensive region. The USDA's Consumer Expenditures Survey indicates that middle-income families (earning between $76, 106 and $138, 070 in 2023) usually spend about $15, 877 annually.
Meanwhile, a LendingTree study revealed the national average expense of raising a child reached $21, 681 in 2021, reflecting a 19. 3% increase since 2016. Costs vary widely based on family income, with low-income married couples spending an average of $174, 690 and single parents $172, 200 to raise a child up to age 17. Projections for 2024 estimate the cost for a single child at no less than $25, 714, showcasing a 41.
5% rise since 2016. Overall, the potential range for raising a child varies dramatically and requires careful budgeting across major expense categories, including childcare, education, food, and medical costs.
How Much Money Do I Need To Start A Family?
According to the U. S. Department of Agriculture, the cost of raising a child from birth to age 17 is estimated at approximately $233, 610, not including college expenses. Costs can vary significantly based on individual circumstances and parenting styles. For middle-income families, the average annual cost ranges close to $13, 000 in the early years, making the first year particularly costly due to initial purchases.
Cost estimates also suggest that around $250, 000 is needed to raise a child up to 18, with recent figures indicating even higher totals, up to $310, 000. Factors like location impact these financial requirements, with families in more expensive areas potentially needing upwards of $1, 000, 000.
Families typically need a budget of $40, 000 to $60, 000 annually to cover basic necessities. In regards to single parents, the required income can exceed $100, 000 depending on the number of children. Online resources such as EPI's Family Budget Calculator can provide insight into the income needed for a modest lifestyle. As parenthood brings increased financial responsibilities, understanding these costs upfront can aid in effective long-term planning and decision-making regarding family finances. Ultimately, while statistics highlight the expense of raising children, personal circumstances will heavily influence overall costs.
📹 How Much Money Do You Need To Live A Great Life?
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So…. Why is a person making 30k paying ANY taxes… My young adult children are dying financially. Occasionally needing our help to get by month to month… My retired husband and I are too dying financially…. With retirement and VA compensation, we have had to go back to work!! We left expensive living in AZ to get to Missouri… decreased our living expenses by 50% in 2021 Now!! Barely surviving !! And working again…. Barely surviving..
In 1975 my average pay check was $300 every 2 weeks. I was supporting a family of 5 with 1 on the way. No health insurance, and my house payment and bills and food took about half my monthly income. That left me with the other half as disposable income……to do with as we pleased. Think about that for a while. People Have No Idea what inflation has done to them ! ! ! Oh, and my total income taxes that year was just over $1,200 for federal and $37 for the state.
Right just a few short years ago, when Trump was President, my wife and I were actually able to have a savings account for the first time in a long time. Once the new administration took over, we burned through our savings account trying to afford food and gas. It’s pretty much non-existent now and it is infuriating🤬
I long for the days in my youth when i could move and live virtually anywhere in the country anytime & afford to live comfortably. The Rockefeller Commission heavily handed lobbied to get women in the workforce and fooled everyone marketing it as women’s rights, but the goal in the long run was to depress wages so employers could get 2 for 1.
It’s worse than they say. This depends on the size and needs of your family. The average home with 3+ bedrooms in most urban places in Washington state is over $1,000,000. there is no way you could do 50/30/20 with these interest rates on that kind of mortgage on just $100,000 a year. That’s 70% of your salary. It’s scary ridiculous.
I live on San Francisco Peninsula, doctors and dentist are leaving because they can’t afford to live here. Kaiser is offering a million dollar bonus if you work there 5 years, in my neighborhood 4 three bedroom homes just rented out at 7k a month, you need 200k and a income of 545k a year for a 1100sq ft starter home and somehow homes are selling in like 3 days, it’s insane
Yeah. In 2020 my part time job was eliminated but we were doing fine so I stayed home with the kids whom we’d pulled out of school due to my daughter’s health. We paid off all our debt aside from the house and a few company vehicles that didn’t make sense. Now debt has crept back up and we can’t make ends meet…My husband made well over 100k last year. I’m heading back to work.
Not many of us in the United States are in that bracket anymore. we are trying to help our kids too because they can’t make it on this economy thanks to Biden and I am 69 and still working full-time so I can help them and so is my husband while trying to help ourselves? Utah has become so ridiculously high that nobody can live here unless you’re well off because our wages are so much lower here.
Retirees, forget the U.S. you can live an upper middle class lifestyle in Southeast Asia for $2,000 a month. $3,000-$4,000 a month puts you in the top 5%. Establish residency in a no income tax state, then move overseas. You can’t avoid Federal taxes, but you can avoid all state and local taxes. I’ll never live in the U.S. again. Go where you are treated best.
30% for tax? naw, fam. Add in: sales, property, fuel..and the 7% inflation we have (literal)..basically a tax that was never voted on. It’s more like 50% tax. So that $100k is $50k. An apt at $1,500 and a Tesla (inc insurance) monthlies..and there’s $3k a month. That doesn’t leave much already! You’re down to $14k a yr for various other bills and food. That leaves maybe $5k a yr for both discretionary and investing. Throw in a few random expenses and ..basically a pitance left of that $100k. So..skip the Tesla and drive an 8 yr old Dodge Caravan and..yeah, you have a few bucks to play with..lol.
Please take Burgum, we don’t want him stealing $150million tax payer money to build a tech Farm with Bill Gates, Michael Bloomberg Kevin. O’leary and himself to create 12 jobs to make all 4 who are currently millionaires. More money where is North Dakota share? As shark tank would always want their share
We will endure what we are willing to tolerate. There has actually been a study on this. They are not using rats anymore. Did you know that if you bury a loved on in your backyard, you don’t have to pay property taxes? You can zone your property in a different way and it stays in your family. Why do you think they started the funeral/ cemetery business? To force property taxes.
Where do you find jobs that you can earn these amounts??? I have never earned even remotely that amount in my 30 years of employment. My final anual pay before retirement was 54,000. We never have lived the 50/30/20. It is incredibly that we lived fairly good over the years when I was employed but I never mer this 50/30/20 standard. This is a crazy world.
The backup state of Florida, you need to make $79,000 a year to rent a $2000 rental or $6000 a month income. If not you got to be living with someone. Can’t imagine the North East. NYC the current rent is $3500 a month but if you are looking to find a rental you will need $4500 just the average for a one bedroom unit. Jersey City New Jersey $5500+ the average two bedroom so you will be needing to make $16,500 a month just to afford a a two bedroom. Most landlords require a tenant to be making three times the rent especially on renovated units.
So, sounds like we have a problem. People cannot afford to live. So, what is the solution besides the fed reducing the amount of dollars in circulation? Can anything be done at this point? The biggest expense is housing, and transportation. You can’t do much if you don’t have housing or transportation.
Utah here. My wife and I earn $140k annually and have made that amount for many years.With Two kids in college and two at home we’ve had to make adjustments since Biden became president. Increases to groceries, utilities, insurance, gas…For the first time in a long time we’ve had to say woah, can we afford this? I’d hate to be just starting out. Rent alone is demoralizing for a young couple. We need major cuts to the Federal government, start putting criminals in jail (the reason insurance is so high) and get back to energy independence. The combination of restricting fuel and printing money is 100% the reason why inflation is out of control. Wake up people, we need to demand this from our representatives
My rent alone is 50% of my paycheck not counting electric car insurance house insurance health insurance life insurance 401 k and rx copay/deductible-and phone I never knew it was this much stuff wow I’ll never be able to retire hurts myhead to think about it i make less than half of that for where i live in Az
Increasing the minimum wage by practically double doubles the costs of living in all areas. It’s forced inflation beyond the regulations and limits imposed by the dictators in the WH. I’ll also blame Redfin, ZillOw, Trulia and etc. for inflated real property pricing for the past ten years or so. It’s like an overton window in costs, ppl get used to seeing a $100k house selling for $400K.
I grew up in North Dakota and I still own property there. If it weren’t for the weather, I’d live there for the rest of my life, but it’s THAT bad. I live in a pretty crappy state now (I live in New Orleans, Louisiana) but it’s never snowed since I’ve lived here, and I can always visit my hometown if it gets too hot here. I just remember dreading half of the year while I lived there. 🤷🏻♀️
Maybe we should help each other, a local church leader, actually many of them and other community people say to share…we have a Buy Nothing page for our little city. We can ask for and get, or give for free!! And if you need to, you can meet in public. I do not recommend this for everywhere, but it can work in safer places. I am sorry that Biden allowed in so many criminals who do not care about us. Stay safe, above all!!
Stu! Sometimes I wish you wouldn’t say “big red state” – a lot of young people are picking up pieces of things they hear here and there and sarcasm can really confuse them when they are earnestly trying to pick up what’s going on. I mean some young people being interviewed on the beach literally did NOT know who Kamal Harris is. (SO, to those just now trying to clue in on politics, he really means BLUE – Democrat states.
“Then I guess i’m the only one.” Idaho. I make less than 31,000$ a year. No mortgage no Debt never used credit. I make it just fine. Even have savings. Fact is this is the most comfortable and the most i’ve ever made in my life. Eat, drink, smoke and go anywhere any time I want. Even if gas was ten dollars a gallon. To date.. No more than 200,000$ entire lifetime. A veteran 1Cav. Age 67. Va,ss.only. Ps.. Even though I paid for it all. I realize I own none of it.. Property tax’s.. Plus Utilities..about..2,000$ per-yr total. But I am happy.. going fishin… later. ” Manifest Destiny.” At 17 years old I saw what I needed to do.. and I stuck with it. Didn’t start paying utilities till twelve years ago. Lived in my vehicle many years. Loved it.
The goal is to make life really comfortable for a few and to make life really uncomfortable for everyone else..Then the few will be blamed for the uncomfortable lives that everyone else is living due to the wealth being accumulated by the few which in turn raises the cost and standard for everyone else which may lead to violent revolution with the right leader in place.. But on the other coin there is the view that some how everyone is going to be able to be poor and own nothing and work all day and somehow be happy as long as they are able to use consumption goods that keep them docile like drugs and games breads and circuses etc in order to prevent them from turning to violence..But again..With a leader..The masses may result to extreme violence if convinced..And it wouldn’t be hard to convince them…The only hard part is getting them to react which they won’t as long as they have the vices..Phones games etc
Those number are just showing how worthless the dollar is. The government is printing too much of the stuff and it is getting to a point where no one is going to accept it a money anymore. The people we call rich are in that group because they own real things, not useless currency that depreciate every day.
you said my state requires $94K/year to live comfortably. define comfortable. i made less than $60k last year. i have a house, a car, a custom motorcycle, many expensive items for my hobbies, my fridge and freezer are full of food. my bills are paid. i got a new roof 3 months ago, it’s 80% paid off already. i have a retirement plan and an annuity fund. if i made $94k/year, i would live like a king – brand new car, lots of home renovations, nice vacations, etc. i would LOVE to make that much money!
My father was chairman of the board and president of the contracting company that built the St. Louis Arch, the Fulton nuclear plant,the sports stadium and a hydro electric power plant. He never made $85k in salary. He invested and saved and was comfortable. Before he died, he said as an over the road, class A driver, I probably made more a year than he ever did. I’m retired now, everything is paid off but I subsist on social security. Illeagle aliens ( spade a spade) have more given to them at the border than I have and I’ve paid taxes for 60 years…..FJB!!!
I bless, and stand with Israel!!! 🙏🇮🇱🙏 John 3:3. Jesus answered and said unto him, Verily, verily, I say unto thee, Except a man be born again, he cannot see the kingdom of God. The kingdom of God is at hand: repent ye, and believe the gospel. The Blood of Jesus Saves!!! 1 Corinthians 15:3-4. How that Christ died for our sins according to the scriptures; And that he was buried, and that he rose again the third day according to the scriptures. And he is coming back one day. Romans 10:9. That if thou shalt confess with thy mouth the Lord Jesus, and shalt believe in thine heart that God hath raised him from the dead, thou shalt be saved. John 14:6. Jesus saith unto him, I am the way, the truth, and the life: no man cometh unto the Father, but by me. John 3:16. For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life. God bless you!!! 🙏🇮🇱🙏