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cost of living

Middle class people reveal what's left after paying bills

The economy is a bit of a struggle for just about everyone lately. Everything seems to be more expensive, from everyday essentials to the cost of housing. It seems there's nothing that inflation hasn't touched and the issue appears to be financially crushing the middle class. Throughout this increase in cost of living some families may be feeling alone in their burden of trying to make ends meet when on paper many are earning more than they ever have.

But as people become more comfortable with sharing salaries and financial status, it's becoming obvious that it's not just a handful of families who are struggling. Recently a social media page called Mid-Continent Funding shared a video of a woman sitting at a computer with text overlay that reads, "just curious how much money everyone had left over each month after paying for all their bills, mortgage and necessities. I've got about $72 and I'm debating on if it should go to retirement, savings or food."

The woman in the video appears to be a mortgage broker bravely sharing that she is also struggling with making ends meet. This theme is something that has become a normal struggle for middle class families. According to a 2024 Bank of America survey nearly 50% of adults report living paycheck to paycheck while 2024 Bankrate surveys report that only 27% of adults say they have an emergency fund.

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"Roughly one in four Americans with credit card debt (24 percent) feel less confident in their ability to get out of credit card debt now than they did at the beginning of 2022. Furthermore, about one in six (17 percent) worry they might not be able to make their minimum credit card payment at some point in the next six months," according to another Bankrate survey completed in 2024.

There's also another factor to consider when looking at the squeeze middle class Americans are feeling, the income of middle class families hasn't risen at the same rates as upper income families according to Pew Research. So while people are earning more than they have previously, their earnings are not increasing as quickly as those in the tax brackets above them. This means post covid inflation is absorbing any extra income they may be bringing home and people are feeling it.

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Viewers of the video asking how much money people have left after paying their bills responded with eye opening results that give a glimpse into how folks are fairing. The revelations also serve as a reminder that people are not alone in their financial struggles.

One person writes, "Left over? We're supposed to have that??"

Another says, "you have left over money? after bills I don't even have enough to cover meds and groceries."

A different person says they only have $11 left to last until the next paycheck while another commenter admits to overdrawing her account every month.


Someone chimes in, "It used to be thousands now I’m always waiting for our paychecks to hit our account," with another person replying to their comment offering solidarity, saying "legit same here. nothing has changed, actually make more than we used to, yet scraping for pennies every check nowadays. idk how people do it."

Saving money for an emergency fund or freeing up money so you'e not living paycheck to paycheck may seem impossible but credit counselor and head of community at Self Financial, Inc. Monique White shares a few tips with NPR that people may find useful. One of the first tips she shares is to contact your creditors to see if they can lower your monthly payments or lower your interest rates to help free up monthly cash.

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First Financial Bank advises people struggling with finances to participate in weekly money saving challenges, use money saving apps, make grocery lists, utilize rebates and shop in bulk. The prospect of looking at your personal finances just may make some people queasy but hopefully a few of these tips can be beneficial to someone's financial situation.

Community

6 states where the minimum wage and cost of living offer the best bang for your buck

The highest state minimum wage in the U.S. is now $16.28 per hour, but some cities are even higher.

State minimum wages range from $7.25/hr to $17.00/hr in 2024.

Public discourse about minimum wage and living wages has been ongoing for years, with people debating whether the government should mandate a minimum hourly pay for workers. President Franklin D. Roosevelt signed the first federal minimum wage law in 1938, setting the lowest wage a worker could be paid at 25 cents per hour. Nearly a century later, the federal minimum wage is $7.25/hr, holding steady since 2009, with people lobbying to raise it to at least $15/hr for over a decade.

However, in addition to federal law, each state has its own laws, a handful of which establish a state minimum wage higher than $15, a handful of which don't have a set minimum wage at all and everything in between. Cost of living has also been a hot topic as inflation has squeezed everyone's wallets and certain cities and states have become utterly unaffordable, especially for people in low-wage jobs or who who are just starting out in their careers. So how do minimum wage and cost of living correlate state-by-state? Are there any sweet spots with a high(er) minimum wage and low(er) cost of living?

While there’s no perfect storm of super low cost of living and super high minimum wage—for instance, Washington, D.C. has the highest state minimum wage at $17/hr, but housing costs 140% more than the national average—there are some states where the ratio is far more favorable than others. According to Insider Monkey, here are the top six states where you can get the most bang for your minimum wage buck.

6. New Mexico

The Land of Enchantment offers a relatively decent living for its $12/hr minimum wage thanks to the state's below average cost of living. According to Rent Cafe, housing in New Mexico is 8% lower than the national average, monthly utilities are 9% lower, food is 4% lower, transportation is 3% lower and healthcare, goods and services are 2% lower.

According to Smart Asset, Albuquerque, New Mexico ranks as No. 10 in U.S. cities where minimum wage goes the furthest.

5. New Jersey

The Garden State's relatively higher-than-average cost of living is counteracted by relatively solid minimum wage of $14.13/hr. Most of the cost of living in New Jersey is wrapped up in housing, which is 30% higher than the national average, according to Rent Cafe, and utilities, which are 12% higher. Goods and services are 5% higher, but healthcare is 2% lower than the national average. Food and transportation are 1% and 2% higher, respectively.

4. Connecticut

With both a cost of living and minimum wage slightly higher than New Jersey, Connecticut rolls in at No. 4 with a $15/hr minimum wage. Where the Constitution State hits hardest is in utilities, which Rent Cafe places at 30% higher than the national average, and housing, which is 24% higher. Healthcare and goods and services are both 9% higher, while transportation and food are just 1% and 2% above average.

3. Missouri

The Show-Me State says, "Show me the money!" with its somewhat respectable $12/hr minimum wage, which goes pretty far with its relatively low cost of living. Housing is the biggest cost benefit Missouri offers at 18% lower than the national average. But utilities, food, healthcare, and goods and services are also all below average, with only transportation landing right at the national average.

Additionally, St. Louis clocked in at No. 5 for a minimum wage real-world value of $13.68 when adjusting for the city's lower-than-average cost of living.

2. Washington

With the highest state minimum wage in the nation (unless you count Washington, D.C.), Washington's $16.48/hr puts it in second place when accounting for cost of living. Make no mistake, Washington isn't cheap overall, with a cost of living 15% higher than the national average. Housing and transportation hit hard at 29% and 27% higher than the national average, respectively. Healthcare is pricey as well at 20% higher than average. Food costs 12% more, but utilities clock in at 7% less than the national average.

Two cities in Washington hit the top 15 for highest real minimum wage value, though, with Seattle at No. 13 and Spokane at No. 2.

map of united states with these states highlighted in green: Washington, New Mexico, Missouri, Illinois, New Jersey and Connecticut

These six states offer the best minimum wage to cost of living ratio.

Created with mapchart.net

1. Illinois

If you want the best bang for your minimum wage buck, head to the Prairie State with its $13/hr minimum wage and 8% lower than average cost of living. Housing in Illinois is 22% lower than average and utilities are 10% lower. The only expense that comes in higher than average for Illinois is transportation at 3% above average, which isn't enough to keep it out of the top spot.

However, there are some minimum wage sweet spots in certain U.S. cities that aren't reflected in these state rankings. According to Smart Asset, Denver, CO, is the city where minimum wage goes the farthest in the nation. Colorado comes in at a respectable 7th place in state minimum-wage-to-cost-of-living ratio, but Denver has its own mandatory minimum wage of $18.29/hr.

A citywide minimum wage is part of what puts Seattle at the No. 13 spot on that same list. Seattle is one of the most expensive cities in the U.S., but its $19.97 minimum wage for most workers changes the ratio in its favor.

Other cities in the top 10 include Buffalo, NY; Minneapolis, MN; Tucson, AZ; St. Paul, MN; Phoenix, AZ and Stockton, CA.

The minimum wage conversation may vary widely across the U.S., with different costs of living and different state laws on the books. But if you're looking to move someplace where your wage will go the furthest, these six states will likely be your best bet to check out first.


This article originally appeared in June.

Pop Culture

Middle class families share how much money they have in savings and it's eye-opening

"I transfer money each paycheck but always end up needing to transfer it back."

Many middle class families are sharing that they have nothing in savings right now.

According to an April 2024 Gallup poll, 54% of Americans identify as part of the middle class, with 39% identifying as "middle class" and 15% identifying as "upper-middle class." That percentage has held fairly steady for years, but for many, what it feels like to be a middle class American has shifted.

Notably, inflation caused by the pandemic has hit middle class families hard, with incomes not keeping up with cost-of-living increases. Housing costs have skyrocketed in many areas of the country, mortgage interest rates have risen to levels not seen since the pre-Obama era and grocery bills have increased significantly. One government study found that cost of living has increased between around $800 and $1,300 a month depending on the state since 2021, putting a squeeze on everyone, including the middle class.

One woman shared that her family is just getting by and asked other people who identify as middle class to "chime in" with what they have in their savings account.

"I swear, every paycheck I am putting money into my savings, but needing to transfer it back within a few days," shared @abbyy..rosee on TikTok. "My registration is due. My husband's registration is due. He needed two new tires, even though they had a warranty. That's $300. My oldest needs braces, he needs a palate expander, that's $120 a month. Not to mention groceries are $200 more a week. Forget about feeding your family great ingredients because who has $500 a week to spend on perfect ingredients to feed your family?"


@abbyy..rosee

somethings gotta give #savings #middleclass #relatable

She explained that her husband makes enough money that they should be able to live comfortably, and that she quit her job because the cost of daycare was more than she was making.

"At some point, something has to give," she said. "What is going on? How do I save money?"

People in the comments chimed in with their savings account totals and it was quite eye-opening. Many people shared that they have $0 saved.

"We make the most money we ever have and have zero savings. We live paycheck to paycheck and every month I don’t know how we get by."

"I think the middle class is 1 personal disaster away from bankruptcy."

"Y’all got savings accounts?!?! 😂"

"I used to freak out if I had under $10k in savings, now I’m happy when I have over $150. 😫"

"We make almost 100,000 a year with no savings!!!! It's always something!!"

"I'm lucky if we have $500-$1K for an emergency. every single time we start saving something happens. the vet, the cars, the kids... something."

"Savings account? I transfer money each paycheck but always end up needing to transfer it back. My husband makes great money too but we are scraping by."

"$803 but we have to pay a $750 deductible this week b/c my Husband hit a deer soooo… back at it 😭 It’s exhausting. Constantly draining it, refilling it, transferring."

Some people shared that they do have some savings, but several said it was because they'd had an inheritance or other chunk of money come their way. Many people shared that their savings has dwindled as increased costs have taken their toll. Some people gave lifestyle advice to save money, but most agreed that just the basics have gotten so expensive it's harder to make ends meet much less put extra into savings.

Thankfully, the inflation issue appears to be waning, but even just plateauing at their current financial reality isn't ideal for many American families. Middle class is supposed to be a comfortable place to be—not rich, but well enough off to feel secure. That's not how many middle class folks feel, though. Most Americans don't have anything close to the amount of money saved that is recommended across the age spectrum, but at least hearing that others are in the same boat is somewhat comforting.

It can be vulnerable to put your financial reality out there, but it's helpful to hear what other people are doing and dealing with so we all feel less alone when we're struggling. Perhaps if people were more open about money, we'd all be able to help one another find ways to improve our financial situations rather than lamenting our empty savings accounts and wondering how to change it.


This article originally appeared on 7.17.24

via Canva

A mother and her adult child.

Studies show that today, roughly 45% of people ages 18-29 live at home with their families, the highest number since the 1940s. The top reason these Gen Zers and young Millenials live at home is to save money (40%), while 30% say they can’t afford to live independently and 19% are recovering from emergency costs.

By comparison, in 1970, just 7% of adults ages 25 to 35 lived at home with their parents.

There are bound to be some struggles when young adults live at home as parents try to understand how to navigate life with their grown children. When you’re raising teenagers, it’s a lot easier to draw the line when it comes to house rules, but how should parents treat their kids when they are grown adults?

Mom and parent coach Kim Muench shared some practical advice recently on Instagram for parents who aren’t sure how to create healthy boundaries with their college-age kids. Muench is the mother of 5 adult children and coaches parents of adults to become the “clear, confident, and consistent guide that’s needed in this stage of parenting.”


In her video, Muench says parents need to give their children more freedom while expecting them to be more responsible.

“Your 20-year-old daughter, who's living at home, does not need a curfew. She does need to communicate whether or not she's going to be home that night,” Muench said in an Instagram video. “Your 24-year-old son needs to do his own laundry. He also needs to move it from the washer to the dryer and back to his room in a timely manner,” she continued.

She adds that parents should stop monitoring the daily activities of their adult children.

"Your college kid does not need to be tracked. Unless, it's part of an agreement that everyone in the family has, for safety purposes. You don't need to be counting the amount of alcohol or the number of beers in the refrigerator after your son has been home for the weekend. Your son does need to buy his own alcohol and drink responsibly."

Parents should also have open lines of communication with their adult children so everyone knows what’s expected of them. “If you're not coming to an agreement on what should be done or what is happening or not happening yet that's supposed to be happening, then you need to sit down together and talk about how you can solve the problem together,” she said.



Most of the younger commenters thought this was the exact message their parents needed to hear. “People will freakishly control their kids all their lives into their 20s and be confused as to why their children are still continuing to live at home. It's creating an unhealthy view of boundaries and fear of being on their own,” Ppris0nwifee wrote in the comments.

A young adult who lives with her parents praised Muench’s approach because it works in her home.

“My parents are this way with me and it makes living here and having a social life so easy with no conflict. I can go out whenever I feel like it for however long. I just have to communicate where i'm going and if I'll be back. other than that they mind their business, it makes living at home really easy,” Strangelydeceased wrote. “Props to the parents who have boundaries but let their adult children live like adults when living at home.”

Having a young adult in the house can be hard for parents because they have to break many of the habits they developed while parenting over the past 18-plus years. That’s why it’s great that parenting coaches like Muench are here to help them navigate this tricky stage of life in a way that supports both parent and child’s needs.