Layout 1

Time, Energy, and Money: Managing Family Resources

The family income in Figure 10.4 is
$36,264, requiring $697.38 per week
($17/hour). Overall, 29.7% of Americans
have incomes below basic family budget
levels required to meet their basic
expenses (Allegretto, 2005).
Living Expenses 2.Now let’s look at
Figure 10.5, which lists the living expenses
of a single parent who makes minimum
wage and is raising two children.

Figure 10.5 illustrates a family needing

roughly $30,000 per year just to meet its

necessary expenses. This family’s total

income, based on the federal minimum

wage, is $10,716. That is $19,000 below

their expenses and $5,374 below the 2005

federal poverty level of $16,090 for a

family of three (Department of Health

and Human Services, 2005).

Poverty is a growing problem in the

United States. The 2004 poverty rate

climbed for the fourth consecutive year to

12.7% or 37 million people (Children’s

Defense Fund, 2007) and dropped slightly

in 2006 to 12.3% (U.S. Census Bureau,

2007a). That means approximately 1 out

of every 6 Americans lives below the

poverty line and is unable to cover even

basic expenses.

One out of every 6 Americans lives

below the poverty line and is unable

to cover their basic expenses.

Figure 10.4

Living Expenses for a Midwestern City Family

of Three: Two Parents and One Child

Source:Basic family budget calculator 2005.

Figure 10.5

Living Expenses for Single Parent Making

Minimum Wage, Raising Two Children

Source:Children’s Defense Fund 2005.

Monthly housing $655

Monthly food $448

Monthly child care $618

Monthly transportation $358

Monthly health care $276

Other monthly necessities $298

Monthly taxes $369

Monthly total $3,022

Annual total $36,264

Monthly housing $805

Monthly food $427

Monthly child care $620

Monthly transportation $416

Monthly health care $68

Other monthly necessities $162

Monthly total $2,498

Annual total $29,976

Image from BigstockPhoto.com / belinda_bw