Working couples with no kids need to earn at least $62,766 to cover their basic needs in the U.S. — far less than families who also need to cover additional expenses like child care.
That’s according to a recent analysis by SmartAsset, which looked at the median cost of necessities in each U.S. state, including housing, transportation, health care, taxes and other common expenses, as tracked by the MIT Living Wage calculator. Investment contributions and discretionary expenses like entertainment are not part of these estimates.
In contrast, working couples with one child require a median income of $86,459 to cover their needs. That’s mostly due to child-care expenses, which run a median of about $11,500 per year for a single child in the U.S., according to the study.
Couples who are dual-income, no kids — otherwise known as DINKs — also tend to have lower costs for expenses aside from child care, particularly food, housing and transportation.
These extra savings — roughly 20% for each category — come from having one less mouth to feed, but also because couples tend to live in smaller homes and spend less on transportation than they would otherwise.
With fewer expenses, DINKs are often in a better position to save for retirement or splurge on things like travel. But of course, having kids is not entirely a financial decision.
The amount couples need to cover basic expenses varies by state
Additionally, housing costs and other basic expenses tend to be much higher in large cities.
For context, the minimum wage is $12 or less per hour in most states, which works out to about $24,960 or less per year for full-time workers. The federal minimum is just $7.25 an hour, which comes to about $15,000 a year for an individual, or $30,000 for a couple — a far cry from the annual income a couple needs to cover basic expenses in most states.
The highest minimum wage in the U.S. is in California, where some fast food workers earn $20 an hour. However, that still doesn’t cover the basic needs for a family with one or more children in that state.
Here’s a look at how much annual income a couple needs to cover basic needs in every U.S. state.
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
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