According to a recent study by SmartAsset, the state with the highest cost of raising a family of four is not New York, California, or Hawaii, but Massachusetts. For comfortable singles in the state, the income requirement also ranks at the top.
In Massachusetts, to support a family of four with two children for a comfortable life, both parents need to earn $301,184 annually.
“Comfortable” in this context means satisfying the income needed for a 50/30/20 budget for a family of four, where 50% of income is used for necessities like housing and utilities, 30% for discretionary spending, and 20% for savings or investments.
For singles wanting a comfortable life in Massachusetts, the income requirement also ranks highest in the nation, reaching $116,022. In major American cities, the average cost for a single person to maintain a comfortable lifestyle is $96,500, which includes debt repayment and the ability to invest for the future.
In New York, singles need the most money to live comfortably. With an hourly wage of $66.62, the annual salary requirement is $138,570. A single person in New York City is estimated to need $70,000 in wages to cover basic living expenses.
For families, the cost of a comfortable life is naturally more expensive. They need an average total income of about $235,000 to support two adults and two children without experiencing financial difficulties. Aside from Massachusetts, several states like Hawaii, Connecticut, New York, and California also have income requirements exceeding $270,000.
However, in six cities, a family of four must have an income of over $300,000 annually to live comfortably and raise children without worries. These cities are San Francisco ($339,123), San Jose ($334,547), Boston ($319,738), Arlington, Virginia ($318,573), New York City ($318,406), and Oakland, California ($316,243).
SmartAsset used data from the MIT Living Wage Calculator to deduce the income needed for a 50/30/20 budget based on the cost of essentials.
Below are the incomes needed for a comfortable life for a family of four in various states across the United States, listed in alphabetical order:
– Alabama: $193,606
– Alaska: $242,611
– Arizona: $230,630
– Arkansas: $180,794
– California: $276,723
– Colorado: $264,992
– Connecticut: $279,885
– Delaware: $228,966
– Florida: $209,082
– Georgia: $212,826
– Hawaii: $294,611
– Idaho: $211,245
– Illinois: $231,962
– Indiana: $206,003
– Iowa: $211,411
– Kansas: $196,768
– Kentucky: $190,112
– Louisiana: $189,613
– Maine: $229,549
– Maryland: $239,450
– Massachusetts: $301,184
– Michigan: $214,490
– Minnesota: $244,774
– Mississippi: $177,798
– Missouri: $202,259
– Montana: $211,411
– Nebraska: $213,075
– Nevada: $237,286
– New Hampshire: $244,109
– New Jersey: $251,181
– New Mexico: $203,923
– New York: $278,970
– North Carolina: $209,331
– North Dakota: $202,176
– Ohio: $209,331
– Oklahoma: $194,106
– Oregon: $257,338
– Pennsylvania: $230,464
– Rhode Island: $249,267
– South Carolina: $200,762
– South Dakota: $192,608
– Tennessee: $195,770
– Texas: $201,344
– Utah: $218,483
– Vermont: $248,352
– Virginia: $235,206
– Washington: $257,421
– West Virginia: $189,363
– Wisconsin: $225,056
– Wyoming: $203,424
As a general trend, living costs are lower in more rural states compared to states with major cities like California and New York, especially in terms of housing.
However, wages in rural areas are often lower. For example, according to data from the Bureau of Labor Statistics, the median annual wage for workers in Mississippi is $37,500, compared to $56,840 in New York.