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In a high cost-of-living place like greater Boston, that's just not true. For example, consider a family of 4 (2 adults and 2 young children), living in a 2-bed
by neonnoodle 4y ago
In a high cost-of-living place like greater Boston, that's just not true. For example, consider a family of 4 (2 adults and 2 young children), living in a 2-bedroom apartment in eastern Massachusetts:
- 100,000 household income, about 1/3 of that is going directly to income tax. Net is going to be maybe $70-78,000.
- average 2-bedroom apartment rent is around $2800-3200/month: call it $34,000/year. (Because they rent, they can't benefit from mortgage interest tax deduction.) This doesn't include utilities, which have gone bonkers in MA the past few years.
- Childcare/preschool for young kids in Massachusetts is between 15-20,000 PER CHILD PER YEAR. Our example family could be paying $30,000 a year for childcare so both parents can work.
- It's possible that one or both parents are still repaying student loans at 7% interest. Let's say only one parent has a student loan payment, $300/mo which is a little under the average for MA. $3,600/year.
- This example assumes that nobody in the family owns a car! While I know families with young children who get by on public transit only, it can be difficult even in the heart of a city.
- spamizbad 4y agoLiving in an expensive city you cannot afford = lifestyle creep. I recognize this isn't a popular view but we are living in a white-hot employment market with tons of employers offering remote work. You could move to Chicago, which has better public transit, pay nearly half that in rent and get free Pre-K.
- zenexer 4y agoGreater Boston does not mean Boston. These aren’t people living in cities.
- Izkata 4y ago> This example assumes that nobody in the family owns a car! While I know families with young children who get by on public transit only, it can be difficult even in the heart of a city. Even public transport has a cost per use. $2 per trip, twice a day, around 260 days per year = $1040 for each of those parents. And that theoretical family is gonna starve, you mentioned leaving out utilities but also forgot food and we're already down to like $300 per year left.
- gruez 4y agoYour estimate is off by half because you're conflating household income with individual income. The figures look way better if you assume that both adults are working, bringing the household income to $200k.