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Wednesday June 12, 2024

US wage worries: How much money does American family of 4 need to survive?

In some US states, a family of four needs at least $100,000 to get by; find out

By Web Desk
September 18, 2023
A four-person family in the US. — Twitter @freepik
A four-person family in the US. — Twitter @freepik

The amount of money needed by a family of four to survive varies in different US states, however, as per recent research a family needs at least $100,000 to get by in some states.

According to data from the Bureau of Labour Statistics, a living wage is the amount of money that a family of four would need to make in order to adhere to the 50/30/20 budget. 

A married couple with two kids, the eldest of whom is 6 to 17 years old, is considered to be a family of four.

A 50/30/20 budget allocates 50% of your income to needs, such as housing and electricity, 30% to discretionary expenses, and 20% is set aside for savings or investments.

According to research by personal finance website GOBankingRates.com, Hawaii has the highest living salary in the nation for a married couple with two kids at $182,900.

Hawaii is by far the most expensive state for a family of four, although there are 12 other states that are less expensive. 

Unsurprisingly, the cost of living, particularly for housing, is among the highest in the nation in all of these states.

Hawaii has the highest property prices of all the states. This is primarily due to Hawaii's isolated chain of islands, where a lack of available land has caused property prices to rise. 

Since the majority of commodities are delivered by sea to Hawaii, transportation expenses have also increased. These greater expenses are then frequently passed on to customers in the form of higher prices.

A sizable living wage is also necessary in Massachusetts, California, and New York because their major cities have some of the highest housing expenses in the nation.

The South and the Midwest, where housing costs are often lower than in other parts of the country, are the states with the lowest living wages. 

Mississippi has the lowest living wage of all the states, with an annual cost of $73,381 for a family to get by, which is less than half of what a family would require in Hawaii.

The average salary for married couples with two kids, ages 6 to 17, is $139,993, according to GOBankingRates. According to the survey, most households have two income earners, with an average of 1.8 earners per family.

Even with two salaries, which is a benefit, not every family can afford the price of a 50/30/20 budget in their state, mostly because of growing home costs, reported CNBC.

Here’s a look at the living wage needed for a family of four in every US state, in alphabetical order.

Here's a list of annual living wages needed by a family of four in these US states:

Alabama: $75,724

Alaska: $113,079

Arizona: $97,345

Arkansas: $76,456

California: $130,239

Colorado: $95,563

Connecticut: $101,030

Delaware: $91,293

Florida: $92,271

Georgia: $78,448

Hawaii: $182,900

Idaho: $94,874

Illinois: $79,899

Indiana: $80,144

Iowa: $78,025

Kansas: $75,924

Kentucky: $77,842

Louisiana: $80,451

Maine: $99,158

Maryland: $110,244

Massachusetts: $142,341

Michigan: $80,998

Minnesota: $81,931

Mississippi: $73,381

Missouri: $77,197

Montana: $92,367

Nebraska: $79,007

Nevada: $95,755

New Hampshire: $100,436

New Jersey: $104,770

New Mexico: $82,047

New York: $118,127

North Carolina: $84,957

North Dakota: $83,852

Ohio: $81,006

Oklahoma: $74,253

Oregon: $106,779

Pennsylvania: $87,500

Rhode Island: $95,929

South Carolina: $84,062

South Dakota: $83,708

Tennessee: $79,054

Texas: $81,374

Utah: $89,936

Vermont: $106,692

Virginia: $91,955

Washington: $105,080

West Virginia: $76,905

Wisconsin: $84,156

Wyoming: $79,879