The Family Budget Calculator, released by the Economic Policy Institute, indicates that the cost to raise a family can vary widely depending on where someone lives. Additionally, although the study shows that it can be much less expensive to raise a family in more rural areas, due to cost of living differences, people may still struggle to support a family if they have a low-wage job.
In Morristown, located in eastern Tennessee, a family of four is able to meet basic needs at a cost of just under $50,000 a year. A similar family with the same types of expenses living in a metropolitan area, like San Francisco or New York City, can expect to pay over $90,000 annually. In Washington, the cost exceeds $106,000.
The think-tank looked at over 600 communities and assumed for a two adult and two child household. Expenses included housing, food, child care, transportation, health care, other necessities and taxes. These expenses take into account for things like furniture and cell phones, but it does not include vacations or savings for college or retirement.
States like Tennessee, Mississippi and Louisiana are some of the least expensive places to raise a family, but even these states can put a burden on people who are making at or near minimum wage; the federal minimum wage is $7.25 per hour. Two adults with minimum wage jobs working full time would not be able to afford to raise a family without assistance of some kind, even if they live in Morristown.
