By Samuel Stebbins, 24/7 Wall St. via The Center Square
We all require a certain amount of money each month to pay for normal living expenses, and in recent months, that amount has gotten much higher. Whether at the pump or the grocery store, Americans are being hit with a severe case of sticker shock.
The consumer price index rose an annual 8.5% in March, the highest increase since December 1981. Gas prices accounted for more than half of the rise in costs, but the cost of groceries skyrocketed 10% from the previous year, too.
According to the Family Budget Calculator published by the nonprofit think tank Economic Policy, an average family of four can expect its living expenditures in 2022 to total $86,718. This model assumes a family of two adults and two children - aged four and eight - and a modest yet adequate standard of living. Cost estimates include expenses related to housing, food, child care, transportation, health care, taxes, and other necessities.
In Florida, the estimated cost of living for a family of four stands at $82,998 for 2022, lower than the national average and the 25th highest among states. Of all living expense categories, housing has the highest annual cost in Florida, averaging $15,232 per year for a family of four - or 18.4% of the family's estimated annual expenses.
The average cost of living for a family of four in the state highlights the financial hardship many Florida families face. According to the five-year estimates from the U.S. Census Bureau's American Community Survey, there are about 5,118,100 families living in the state, and an estimated 25.6% of them earn less than $40,000 per year.
| Rank | State | Avg. living expenses for family of 4 in 2022 ($) | Most expensive cost of living category | Est. cost of most expensive category, 2022 ($) | Families earning less than $40,000 annually (%) |
|---|---|---|---|---|---|
| 1 | New York | 112,751 | Child Care | 31,874 | 21.8 |
| 2 | Hawaii | 111,092 | Housing | 23,335 | 15.4 |
| 3 | Massachusetts | 109,184 | Child Care | 26,377 | 16.1 |
| 4 | California | 101,407 | Housing | 23,734 | 20.4 |
| 5 | New Jersey | 97,717 | Child Care | 20,144 | 16.6 |
| 6 | Connecticut | 95,550 | Child Care | 18,113 | 16.4 |
| 7 | Alaska | 94,945 | Child Care | 22,447 | 16.3 |
| 8 | Vermont | 94,517 | Health Care | 19,240 | 19.1 |
| 9 | Oregon | 92,861 | Child Care | 19,026 | 20.7 |
| 10 | Washington | 92,387 | Child Care | 18,876 | 16.4 |
| 11 | Colorado | 92,197 | Child Care | 19,418 | 16.3 |
| 12 | Wyoming | 91,802 | Health Care | 21,337 | 18.8 |
| 13 | Virginia | 91,515 | Child Care | 17,347 | 17.5 |
| 14 | Maryland | 89,052 | Housing | 17,840 | 14.6 |
| 15 | Delaware | 87,980 | Health Care | 17,175 | 19.1 |
| 16 | Minnesota | 87,246 | Child Care | 20,635 | 15.6 |
| 17 | Illinois | 86,153 | Child Care | 18,131 | 20.1 |
| 18 | West Virginia | 85,913 | Health Care | 24,483 | 30.6 |
| 19 | Arizona | 84,889 | Child Care | 17,391 | 23.8 |
| 20 | Nebraska | 84,527 | Child Care | 18,934 | 18.9 |
| 21 | Rhode Island | 84,019 | Child Care | 18,589 | 19.4 |
| 22 | New Hampshire | 83,859 | Child Care | 15,612 | 13.8 |
| 23 | Pennsylvania | 83,813 | Child Care | 19,039 | 20.7 |
| 24 | Maine | 83,440 | Health Care | 15,101 | 21.5 |
| 25 | Florida | 82,998 | Housing | 15,232 | 25.6 |
| 26 | Nevada | 81,680 | Child Care | 17,051 | 23.2 |
| 27 | Montana | 81,516 | Child Care | 17,025 | 22.6 |
| 28 | Utah | 80,653 | Child Care | 16,111 | 16.2 |
| 29 | North Dakota | 80,475 | Child Care | 20,541 | 17.5 |
| 30 | Wisconsin | 79,856 | Child Care | 17,092 | 19.3 |
| 31 | Indiana | 79,612 | Child Care | 18,107 | 22.8 |
| 32 | Kansas | 79,124 | Health Care | 16,767 | 20.5 |
| 33 | Alabama | 79,057 | Health Care | 17,245 | 28.4 |
| 34 | South Dakota | 78,824 | Health Care | 19,489 | 20.5 |
| 35 | North Carolina | 78,686 | Health Care | 15,361 | 25.8 |
| 36 | Oklahoma | 78,408 | Health Care | 16,062 | 27.2 |
| 37 | Idaho | 78,273 | Transportation | 15,147 | 22.7 |
| 38 | Georgia | 78,192 | Health Care | 15,341 | 25.1 |
| 39 | Michigan | 78,057 | Child Care | 17,276 | 22.9 |
| 40 | Louisiana | 76,581 | Health Care | 17,522 | 31.1 |
| 41 | Texas | 76,087 | Transportation | 13,907 | 24.4 |
| 42 | Missouri | 75,570 | Health Care | 16,101 | 23.6 |
| 43 | Kentucky | 74,849 | Health Care | 14,951 | 28.8 |
| 44 | Tennessee | 74,197 | Health Care | 14,990 | 26.6 |
| 45 | Iowa | 73,867 | Transportation | 14,656 | 19.5 |
| 46 | Ohio | 73,570 | Child Care | 14,489 | 23.3 |
| 47 | New Mexico | 72,948 | Child Care | 14,800 | 31.2 |
| 48 | South Carolina | 72,542 | Health Care | 14,677 | 26.7 |
| 49 | Arkansas | 70,474 | Health Care | 14,413 | 30.5 |
| 50 | Mississippi | 70,116 | Health Care | 17,460 | 33.3 |
As an economic analyst with a deep understanding of macroeconomic trends and regional variations, I've closely followed recent developments in the cost of living across the United States. My expertise extends to analyzing factors such as inflation, consumer price indices, and regional economic disparities, which allows me to provide valuable insights into the financial challenges faced by American families.
The recent article by Samuel Stebbins highlights the alarming increase in living expenses for Americans, particularly in terms of the consumer price index (CPI). The CPI rose by a substantial 8.5% in March, marking the highest annual increase since December 1981. Gas prices were a significant contributor, accounting for more than half of the overall rise. Additionally, the cost of groceries surged by 10% compared to the previous year, adding to the financial strain on households.
The article references the Family Budget Calculator published by the Economic Policy think tank, which outlines the estimated living expenditures for an average family of four in 2022 at $86,718. This calculation includes various categories such as housing, food, child care, transportation, health care, taxes, and other necessities. It provides a comprehensive overview of the financial landscape for families in the current economic climate.
Furthermore, the article delves into state-specific data, focusing on Florida as an example. In Florida, the estimated cost of living for a family of four in 2022 is $82,998, which is lower than the national average. Housing emerges as the highest annual cost category in the state, averaging $15,232 per year for a family of four, constituting 18.4% of the family's estimated annual expenses.
The data from the U.S. Census Bureau's American Community Survey is also cited, revealing that approximately 25.6% of families in Florida earn less than $40,000 per year, underscoring the financial challenges faced by a significant portion of the population.
To provide a broader perspective, the article includes a ranking of states based on the average living expenses for a family of four in 2022. New York tops the list with an average of $112,751, and the most expensive cost of living category is child care, with an estimated cost of $31,874.
This comprehensive analysis showcases the intricate interplay of various factors contributing to the rising cost of living, emphasizing the importance of understanding regional variations and the specific challenges faced by families in different states.
