Cost of Living Surge Puts Pressure on American Families, Study Finds

by

A woman pays with cash as she buys from a street vendor, Sept. 26, 2017 in New York. Despite numbers showing a healthy economy overall, lower-income spenders are showing the strain. (AP Photo/Mark Lennihan)
Reading Time: < 1 minute

(AURN News) – A comprehensive new study has revealed the escalating financial pressures facing American families as the cost of living continues to rise across the United States. The analysis, conducted by financial technology company SmartAsset using data from MIT’s Living Wage Calculator, offers surprising news regarding the income required to meet basic needs in various states.

Massachusetts emerged as the most financially demanding state for working parents. Single parents there need an annual income of more than $109,000 with one child and more than $140,000 with two children to cover basic expenses. This high cost is primarily attributed to childcare expenses. The study also found that stay-at-home parents in Massachusetts could save more than $75,000 annually on childcare costs for three children.

The research also sheds light on the financial requirements in states with high Black populations. In Texas, a single adult without children needs $43,508 annually to meet basic needs. This figure jumps to $73,609 for those with one child and $90,695 for those with two children. There are similar trends in Georgia and Florida, with costs slightly higher in both states. Data from Pew Research shows that in Black U.S. households in 2022, 49% earned less than $50,000, and 51% made $50,000 or more. Only a third of Black households make $75,000 or more.


Click play to listen to the AURN News report from Jamie Jackson:

advanced divider
advanced divider