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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.

Map via Wikimedia Commons (multiple creators)

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.

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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."

Photo by Karolina Kaboompics/Pexels

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

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Family

Got a 20-something at home? Parent coach shares simple rules for a healthy and happy home.

A lot of parents need to hear this.

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.

See on Instagram

“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.

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Education & Information

Nonprofit exposes 'housing cartel' behind sharp rent increases across the country

"In Phoenix alone, you've seen rent increase 76% since 2016."

Photo by Daniel Tadevosyan|Canva

Nonprofit exposes reason behind sharp rent increases

It's no secret that there's a housing crisis in America. That's not to say that there aren't enough houses for people to live in, there are plenty of houses and apartments available, they're simply unaffordable. Over the past several years the cost of housing has increased to an amount that is so out of reach for the average person, that homelessness is on the rise as people unable to pay their rent are evicted.

While the housing prices continue to climb, wages have essentially stayed the same. This has led to people across the country making difficult decisions in an attempt to keep a roof over their heads. But most people have no idea why rental rates have skyrocketed in less than a decade. One nonprofit is exposing where this unexplained increase is stemming from with the help of the attorney generals' of Arizona and Washington D.C..

More Perfect Union is a nonprofit media organization aimed at empowering working people. Recently, the organization tackled the American housing crisis with a pretty shocking discovery.

There's a singular company behind the exorbitant housing prices in Arizona and D.C. though the states are thousands of miles away from each other. The attorney general of the District of Columbia calls the company an illegal housing cartel due to the tactics used and the money made. The company is called RealPage, which uses an algorithm that pulls from renters confidential information to skew the housing prices.

Landlords sign a contract to work with RealPage, but according to documents uncovered by the investigators, if a landlord pushes back against the rates, the company can expel them from the program. But what about all the empty units? There doesn't seem to be a concern because the rates are so high that the landlords still increase their revenue even when some apartments are empty for long periods of time.

This may feel a bit like a movie plot, but it's not science fiction. RealPage may be operating in multiple states across the country contributing to the unaffordable price of housing for American citizens.

a view of a city with tall buildingsPhoto by Gabriel Valdez on Unsplash

"We're talking about an algorithm that aggregates otherwise confidential information that the landlords have that ordinarily they would not share with their competitors," Washington D.C. Attorney General, Brian Schwalb says. "That allows then the algorithm to spit out a pricing recommendation. All designed to keep the overall market at its highest peak."

Arizona Attorney General, Kris Mayes explains, "they're not charging what the market can bear they're controlling the market. It's leading to the exacerbation of our affordability crisis, our housing crisis here in Arizona."

RealPage's practices are so concerning that the Federal Trade Commission and the Department of Justice stepped in to remind landlords and companies of antitrust laws. "Your algorithm can't do anything that would be illegal if done by a real person," the text reads on the screen, in part.

Landlords who sign up are bound by the rules set by RealPage, which state RealPage sets the rental rates, leaving landlords little option to opt out. They company even sends out "policing agents" to enforce these prices by physically checking on the landlord and leasing agents. Landlords are lured in with the promise of increased profits, some may not realize at the outset that the prices their renters would be expected to pay would be unaffordable causing some to become homeless.

But with RealPage working with landlords across the entire state, every rental property would increase nearly simultaneously, leaving renters no choice but to pay more than they can afford. In reality this may mean getting second and third jobs, foregoing important medications, pulling children out of afterschool care to allow them to care for themselves and more just to afford housing.

The problem with algorithms setting rental prices and anything else that has to do with human needs is that computer codes are not human. They don't know that Alice living in 3B is a single mom out of work because she just had a mastectomy. An algorithm doesn't factor in that Marc in the split level is having to drive an hour every day to help care for his elderly mother or that Carol on the first floor left an abusive relationship and this was the only place she could afford.

Leaving the lives of people up to an algorithm can have disastrous affects, and the lawsuit the attorney generals are bringing will highlight that concern using RealPage as the example.

This article originally appeared on 4.24.24

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Business

This Map Reveals The True Value Of $100 In Each State

Your purchasing power can swing by 30% from state to state.

Image by Tax Foundation.

Map represents the value of 100 dollars.

As the cost of living in large cities continues to rise, more and more people are realizing that the value of a dollar in the United States is a very relative concept. For decades, cost of living indices have sought to address and benchmark the inconsistencies in what money will buy, but they are often so specific as to prevent a holistic picture or the ability to "browse" the data based on geographic location.

The Tax Foundation addressed many of these shortcomings using the most recent (2015) Bureau of Economic Analysis data to provide a familiar map of the United States overlaid with the relative value of what $100 is "worth" in each state. Granted, going state-by-state still introduces a fair amount of "smoothing" into the process — $100 will go farther in Los Angeles than in Fresno, for instance — but it does provide insight into where the value lies.

The map may not subvert one's intuitive assumptions, but it nonetheless quantities and presents the cost of living by geography in a brilliantly simple way. For instance, if you're looking for a beach lifestyle but don't want to pay California prices, try Florida, which is about as close to "average" — in terms of purchasing power, anyway — as any state in the Union. If you happen to find yourself in a "Brewster's Millions"-type situation, head to Hawaii, D.C., or New York. You'll burn through your money in no time.

income, money, economics, national average

The Relative Value of $100 in a state.

Image by Tax Foundation.

If you're quite fond of your cash and would prefer to keep it, get to Mississippi, which boasts a 16.1% premium on your cash from the national average.

The Tax Foundation notes that if you're using this map for a practical purpose, bear in mind that incomes also tend to rise in similar fashion, so one could safely assume that wages in these states are roughly inverse to the purchasing power $100 represents.

This article originally appeared on 08.17.17

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Education & Information

Man breaks down how living in an all-inclusive resort is cheaper than his average apartment

"I just might find myself on a beach somewhere sucking down cocktails and WHAT OF IT."

Representative Image from Canva

Are resorts the new retirement homes?

Don’t know if you heard, but the cost of living is pretty high these days. Prices for groceries, restaurants, gas, and other necessary items just to, you know, live in the world, reaching an all time high is already making what used to be a decent wage barely enough to get by.

And let’s not forget the biggest financial whammy of all: rent prices. According to Zillow, the average rent price in the US was $1,958 ( recorded in January 2024). That a whopping 29.4% price jump since pre-pandemic times. And of course, that not even taking larger, more expensive cities into account.

It’s enough to make you wonder: “Is it actually cheaper to just live in an all-inclusive resort at this point?”

This question was certainly on Ben Keenan’s mind. In a now-viral TikTok, the 31-year-old compared the cost of living in a resort to that of his Seattle apartment. And let’s just say…it sparked a conversation.

Keenan broke down how much he spent each month on essentials like rent ($2300), utilities ($300), WiFi ($40), car/insurance ($320) and groceries ($400), plus nice-to-haves like dinners out ($300), drinks ($300) and his gym membership ($40). All totaling to $4000.

The first all-inclusive resort that Ben showed, located in Mexico, was priced at $4,500. For a little more, Ben could get everything he was used to having, minus any chores.

"Yes, that's $500 more than what I normally spend on rent, but bear in mind, I'm not paying the most expensive rent out there compared to, like, what other people in Seattle might be paying, for example. Also, is that $500 worth me never having to do a single ounce of laundry or any of my cleaning or whatever?" he said in the clip.

The next resort in the Dominican Republic would be $3,100, already cheaper than what he currently pays. And if he were to, say, split a double room with a roommate, well…you don’t have to be good at math to know that’s a lot less.

In the video's caption, it seems pretty clear that Keenan might be tempted to abandon it al fo that sweet resort life.

"I just might find myself on a beach somewhere sucking down cocktails and WHAT OF IT," he wrote.

@ivebentraveling Honestly, kind of a joke but kind of serious - I might just find myself on a beach somewhere sucking down cocktails and WHAT OF IT 😩 #allinclusive #allinclusiveresort #resortlife #livehack #mexico #dominicanrepublic #travel #travellife #travelmeme ♬ Funny video "Carmen Prelude" Arranging weakness(836530) - yo suzuki(akisai)

Down in the comments section, Keenan’s video struck up a conversation about another affordable alternative lifestyle: cruises. A few even referenced Nancy and Robert Houchens, the retired couple who famously began living on cruise ships because “it’s cheaper than a nursing home.”

Not to mention…it inspired some pretty funny (if not a little bittersweet) jokes from millennials.

“New retirement plan” rent our house and live at an all-inclusive resort with a butler til I die,” one person wrote.

“All inclusive resort aka millennial assisted living,” another quipped.

And perhaps the most millennial joke of them all: “‘Suite Life of Zack and Cody’ got it right all along.”

It’s no secret that many working adults can’t foresee a future where they’d be able to afford the same “American Dream” that their parents achieved. And if having a forever home isn’t a possibility, traveling the world or enjoying a relaxing retirement very well might be the next best thing. And even if finances aren’t an issue, this kind of lifestyle just might align with current values a bit more.

This article originally appeared on 2.19.24

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Woman who lives on a cruise ship for free shares the 4 things she can’t do

Living on a ship isn’t perfect. It’s just close to perfect.

via Pixabay/Pexels

A beautiful ocean liner

Upworthy has covered a few stories about people who decided to live permanently on cruise ships because it's cheaper than living on land or in a nursing home. These stories have connected with millions because they say a lot about the modern cost of living but are also aspirational.

Christine Kesteloo has become popular on TikTok with over 680,000 followers because she shares what living on a cruise ship is really like. Kesteloo is the wife of the ship’s Staff Chief Engineer, so she gets to live on the boat for free. She only has to pay for alcohol and soda, which she gets for half off.

“I live on a cruise ship for half the year with my husband, and it's often as glamorous as it sounds,” she told Insider. “After all, I don't cook, clean, make my bed, do laundry or pay for food.“

Kesteloo’s life seems pretty stress-free. After all, she's basically on a permanent vacation. However, even though she lives on a cruise ship as a “wife on board,” there are a few things she either can’t or shouldn’t do.

She shared these four things in a TikTok video with nearly 10 million views.

@dutchworld_americangirl
I go through four things I can, and cannot do it while living on the cruise ship with my husband #weliveonacruiseship #4things #alaskacruise #cruiseship #cruiseshiplife #cruise #alaska #caribbeancruise #cruiselife #livingstsea #getreadywithme

1. No gambling

Kesteloo says she cannot sit at a slot machine and “play my heart out until I win.” She believes it would “look a little weird if I, as the wife of the staff chief engineer, won a big jackpot.”

2. Can’t leave the ship with the guests

When the ship arrives at a destination, she can't get off with the guests. She must wait about an hour and exit the vessel with the crew. When returning to the ship, she also has to be on time. “No, they will not wait for us,” she says. And the same goes for her husband, if they “miss the ship, someone else will take over the role.”

3. Sit in a crowded pool

Although Kesteloo has access to the pool, gym, and all the ship’s amenities, she’s cautious not to interfere with the guests' good time. She’ll exit the pool if it’s busy because “it’s just the right thing to do.”

4. Must have international traveler insurance

She must have insurance in case of a misfortune on the ship. But as a citizen of the Netherlands, they already have coverage and just have to pay a few extra dollars a month.

Some of the most popular commenters on the video were from women regretting that they married men who aren’t chief engineers on cruise ships or those who want to know where to find a single one.

"OK, can you explain how to marry a cruise ship engineer?" one female commentator wrote.

"How. in. the. H E double hockey sticks do I become the wife of a cruise ship engineer???? I don’t have to work AND cruise for free!" Cute_n_catchy added.

"Does he have any single friends with same job??? Asking for me." Hannah LaCaze asked.

This article originally appeared on 8.23.23

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cost of living

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.

6. New Mexico

5. New Jersey

4. Connecticut

3. Missouri

2. Washington

1. Illinois

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."

Got a 20-something at home? Parent coach shares simple rules for a healthy and happy home.

A lot of parents need to hear this.

Nonprofit exposes 'housing cartel' behind sharp rent increases across the country

"In Phoenix alone, you've seen rent increase 76% since 2016."

This Map Reveals The True Value Of $100 In Each State

Your purchasing power can swing by 30% from state to state.

Man breaks down how living in an all-inclusive resort is cheaper than his average apartment

"I just might find myself on a beach somewhere sucking down cocktails and WHAT OF IT."

Woman who lives on a cruise ship for free shares the 4 things she can’t do

Living on a ship isn’t perfect. It’s just close to perfect.

1. No gambling

2. Can’t leave the ship with the guests

3. Sit in a crowded pool

4. Must have international traveler insurance

Astronaut shares the profound 'big lie' he realized after seeing the Earth from space

Psychologist shares 15-second trick to make kids of any age less rude and more cooperative

A story about two pairs of boots illustrates how rich people get richer in ways poor people can't

She got a nasty note on her car for parking in a disabled spot. Her response is a vital read.

Researchers studied kindergarteners' behavior and followed up 19 years later. Here are the findings.

Longevity test: If you can hang from a bar this long, you’re likely to live longer