The Struggle of Living Comfortably in the U.S.
The Worst States for Families on an Average Salary
According to the report of Forbes, in the face of soaring living costs and rising interest rates on loans many Americans find it increasingly difficult to maintain or improve their lifestyles. Notably, between April 2021 and January 2023 inflation outpaced wage growth resulting in tighter budgets and heightened stress for numerous households. Even as inflation shows signs of slowing, families across the nation continue to struggle with balancing their earnings and expenses particularly in certain states.
1. Hawaii: The Worst State Financially for Families
Despite its picturesque beaches and vibrant culture, Hawaii stands out as the most financially challenging state for families. To meet their basic needs, families in the Aloha State require an annual income of at least $99,832. However, the average dual-income household in Hawaii brings in $125,841 per year—only 26.05% above the minimum needed for basic costs. This slim margin leaves Hawaiians with little financial flexibility. Housing costs are a significant burden with the average annual expense reaching $21,588, compared to a national median of $13,314. The high cost of living in paradise makes it difficult for families to thrive financially.
2. Nevada: Struggling to Make Ends Meet
Nevada, known for its vibrant entertainment scene ranks as the second-worst state for families trying to make ends meet on an average salary. The median income for two-earner households in Nevada is $105,161 annually, which falls below the national average. Meanwhile, families need an income of $83,093 per year to cover basic necessities, higher than the average for all states. This leaves Nevadan families with only a 26.56% surplus for discretionary spending and saving making it challenging to achieve financial stability.
(photo: GOBankingRates)
3. Florida: High Costs in the Sunshine State
Florida, a popular vacation destination and retirement haven, is densely populated despite its high cost of living. The average two-earner household in Florida earns an annual income of $104,935. While this exceeds the $82,702 minimum required for basic expenses, families only surpass this threshold by 26.88%. The narrow margin leaves little room for leisure activities or savings, making it difficult for Floridians to enjoy the state’s renowned amusement parks and sunny beaches without financial strain.
4. Idaho: Affordable but Limited Earnings
Idaho offers relatively affordable childcare and below-average taxes and yet it lacks high-paying employment opportunities. Families in Idaho need a minimum of $77,652 to cover housing, food, and basic bills. Although this amount is lower than in many other states, typical earnings are also lower. The average two-income household in Idaho brings in $98,606 per year just 26.98% above the median income needed for living expenses. The limited financial cushion makes it challenging for families to achieve economic security.
5. West Virginia: Financial Challenges Persist
West Virginia is another state where families with average earnings face significant financial challenges. Households with two working adults and one child need an annual income of $77,633 to afford basic living expenses. In contrast, the typical two-earner household in West Virginia earns $99,629 per year, only 28.33% more than the required amount. The modest surplus leaves families with little financial wiggle room making it difficult to live comfortably and achieve financial freedom.
In these states, the gap between average earnings and the cost of living highlights the ongoing struggle for many American families to attain economic stability and comfort. The combination of high living costs and limited financial flexibility underscores the need for careful financial planning and support systems to help families navigate these challenging times.
