The Self-Sufficiency Standard Studies, which have been conducted in more than 35 states so far (most recently Colorado, Pennsylvania and Ohio), show the bare-bones cost of living, county by county, for several configurations of family.
What does it cost for a single adult to get by? How much does her cost of living rise when she has an infant? A preschooler? Both?
One of the beauties of the SSS studies is that they use objectively verifiable local costs: housing, food, childcare, health insurance, transportation, miscellaneous costs (10% of the subtotal of the preceding 5 costs), plus whatever taxes and tax credits apply locally, to determine the gross income the various family groupings would need to simply get by, without frills, but with all one's most basic needs met -- without private or public subsidies (beyond existing tax credits, which are surprisingly meager; see the appendix tables in each of the 3 studies linked above).
All of the studies detail the costs for a single adult, living independently in an apartment, and assuming HUD Fair Market Rent (usually the 40th percentile). Some next provide the costs for an adult with an infant, so it is easy to calculate the costs associated with adding an infant to one's family. However, one should note that no special allowance is made for diapers, crib, playpen, stroller, carseat or any of the other purchases most new parents make; all those things would fall into that 10% allowance for "miscellaneous" (as would maternity clothes).
Many of the studies do not explicitly show the costs for an adult and an infant, but they do show the costs for both "adult with infant and preschooler" and "adult and preschooler," so one can estimate the costs for adult with an infant.
In Boulder County, Colorado, here are the annual costs:
- single adult $22,644
- adult with a preschooler $44,696, of which $896 per month is childcare
- adult with an infant and preschooler $59,489, of which $1,764 per month is childcare, suggesting that the cost of childcare for an infant is $978 per month, or $82 more than for that preschooler, or $970 more annually. Food for the infant is assumed to be $100 per month, a bit less than the $117 for the preschooler. So the cost for an adult with an infant is about $45,400, and the marginal cost of an infant is about $22,400 per year.
- the marginal cost of a preschooler in Boulder, to a single adult, is $22,052.
In Denver County, where public transportation helps reduce the barebones cost of living,
- single adult $15,882
- adult with a preschooler $33,856 [childcare $745, food $341]
- adult with an infant and preschooler $46,028 [childcare $1461; food $444; suggests infant childcare is $716 -- so the cost for adult and infant is about $33,500 in Denver, and the marginal cost of an infant about $17,600 per year.
- the marginal cost of a preschooler in Denver, to a single adult, is $17,974
In rural Lincoln County, childcare costs less, and transportation more:
- single adult $16,440
- adult with a preschooler $28,198 [childcare $543, food $344
- adult with an infant and preschooler $35,744 [childcare $971 per month; food $447; so infant childcare is $440 per month, and the cost for an adult and an infant is about $28,200, and the marginal cost of an infant is about $11,800
- the marginal cost of a preschooler in Lincoln County, to a single adult, is $11,758.
In Pennsylvania, we see suburban Bucks County (outside Philadelphia)
- single adult $23,583, including $209 per month for food
- adult with a preschooler $42,419, including $825 per month for childcare and $316 for food, so preschooler food is $107 per month.
- adult with an infant and a preschooler $54,211, including $1530 monthly for childcare and $411 for food. Thus infant childcare is $705 per month, infant food about $95. This suggests that an adult and an infant would need $1600 or so less per year than an adult and a preschooler, or about $40,800, and the marginal cost of an infant is about $17,200
- the marginal cost of a preschooler in Bucks County, to a single adult, is $18,836.
In Philadelphia, where public transportation and lower rents make barebones living less expensive:
- single adult $18,633, including $260 per month for food
- adult with a preschooler $36,208, including $738 per month for childcare and $394 for food [preschooler adds $134 per month to food bill]
- adult with an infant and a preschooler $50,253, including $1497 per month for childcare and $513 for food. So infant childcare is $760 per month, and infant food $120 per month. This suggests that an adult and an infant will need about $36,200, and the marginal cost of an infant is about $17,700
- the marginal cost of a preschooler in Philadelphia County, to a single adult, is $17,575.
And in rural Fulton County, PA:
- single adult $16,160, including $209 per month for food
- adult with a preschooler $24,228, including $316 for food and 434 for childcare
- adult with an infant and a preschooler $30,038, including $411 for food and 803 for childcare. So infant childcare costs $369 per month, and food $95. This suggests that an adult with an infant will need about $23,000, and the marginal cost of an infant is a mere $7,160.
- the marginal cost of a preschooler in Fulton County, to a single adult, is $8,068.
In Ohio, Carroll County is among the least expensive counties:
- single adult $14,435, including $205 per month for food
- adult with a preschooler $24,123, including $311 for food and $521 for childcare, so the preschooler's food is $106
- adult with an infant and a preschooler $32,452, including $405 for food and 1042 for childcare. So infant childcare costs $521 per month, and infant food costs $96. The cost for an adult and infant would be pretty close to $24,000, and the marginal cost of an infant is 9,565.
- the marginal cost of a preschooler in Carroll County, to a single adult, is $9,688.
Cuyahoga County (Cleveland) costs considerably more for people with young children:
- single adult $18,758, including $223 per month for food
- adult with a preschooler $34,733, including $337 for food and 672 for childcare, so the preschooler's food costs $114 per month.
- adult with an infant and a preschooler $46,417, including $439 for food and 1323 for childcare. So infant childcare costs $551 per month, and infant food $102. So the cost for an adult and an infant should be somewhat lower than the cost of an adult and a preschooler, at roughly $33,140, which means that the marginal cost of an infant is $14,382.
- the marginal cost of a preschooler in Cleveland, to a single adult, is $15,975.
Lake County, Ohio
- single adult $20,208 including $223 per month for food
- adult with a preschooler $34,588, including $337 for food and $569 for childcare. So the preschooler's food costs $114 per month.
- adult with an infant and a preschooler $46,250, including $439 for food and 1220 for childcare. So infant childcare costs $651 per month, and food for an infant costs $102. So an adult with an infant has a SSS of about $35,430, and the marginal cost of an infant is $15,222.
- the marginal cost of a preschooler in Lake County, to a single adult, is $14,380.
The methodology is identical across all the these counties.
(Notes: 1. The food cost analyses show the marginal cost of adding a child to a one-person or two-person family, and the total takes into account economies of scale, per the USDA low-cost food plan.
2. $223 per month for an adult is $2.44 per meal. The SSS assumes all meals are prepared at home, from scratch.
3. A single adult's housing costs are based on a 1-bedroom apartment; an adult with 1 or 2 children assumes a 2-bedroom apartment. Both assume HUD Fair Market Rent, usually the 40th percentile. Thus, the calculations are based on adding the first child to the family. The second child costs less, because the same home will suffice, without regard to the genders of the children, under the SSS methodology.
Some observations come to mind:
1. As you look at the cost of living in rural and urban counties, consider also how many of us live in each -- and what the opportunities are for those who live in rural counties and in urban counties.
2. Is it any wonder that people who live in places where the costs are like Carroll County, Ohio, Fulton County, PA, and Lincoln County, CO, have difficulty seeing things through the same glasses as those in Philadelphia and Bucks County, PA, Boulder and Denver, CO, or Lake or Cuyahoga County, OH?
3. One might be led to consider how many infants a single adult would need to care for in order to gross enough to support herself as a home day care provider, if she had no costs of doing business (and could manage the babies in a 1-bedroom rental):
Colorado - Boulder County $22,644; infant childcare $978 per month = 1.64
Denver County $15,822 and $716 = 1.85
Lincoln County $16,440 and $440 = 3.11
Pennsylvania: Bucks County $23,583 and $440 per month
Philadelphia County $18,633 and $760
Fulton County $16,160 and $803
4. The Federal Poverty Guideline for a one-person family in 2008 is $10,400; among the counties reviewed here, the cost for a single adult at the barebones SSS level ranges from a low of $14,435 in Carroll County, Ohio, to a high of $23,583 in Bucks County, PA; that's 139% to 227% of the FPG
The Federal Poverty Guideline for a two-person family in 2008 is $14,000 among the counties reviewed here, the cost for an adult and an infant at the barebones SSS level ranges from a low of $23,000 in Fulton County, PA, to a high of $45,400 in Boulder County, CO; that's 164% to 324% of the FPG.
For an adult and a preschooler, the SSS ranges from a low of $24,123 in Carroll County, OH, to a high of $44,696 in Boulder, CO -- that's 172% to 319% of the FPG.
The Federal Poverty Guideline for a three-person family in 2008 is $17,600; among the counties reviewed here, the cost for an adult with an infant and a preschooler the barebones SSS level ranges from a low of $30,038 in Fulton County, PA, to a high of $59,489 in Boulder, CO; that's 171% to 338% of the FPG.
The Federal Poverty Guideline allows an additional $3,600 for each additional family member. The marginal cost of an infant ranges from a low of $7,160 in Fulton County, PA, to a high of $22,400 in Boulder County, CO; that's 199% to 622% of the FPG. The marginal cost of a preschooler (to a an adult living alone) ranges from $8,068 in Fulton County, PA, to $22,052 in Boulder; that's 224% to 613% of the FPG.
And many many more of us live in the high-cost cities than in the low-cost rural counties.
5. It would be interesting to know what military pay looks like for the family of a soldier serving in Iraq. Does it meet their most simply defined needs? Does military pay exceed what the same person can receive in the private workforce?
6. The high-priced lifestyle in Boulder doesn't have any more frills built into it than the lower-priced lifestyle in Fulton County, PA. Parents struggle to earn enough to support their young families in both places, and a significant share of our children are living in families with insufficient income to meet their most modestly defined needs. It explains a lot. And the fault is not with these young parents, even the single ones who some of us might tend to blame for what look like poor choices to some of us. The fault is in how we reward labor, capital and land. Landlords get to pocket, as their own personal treasure, the land rent which makes much of the difference between the Fulton County cost of living and the Boulder cost of living. Not just the residential landlords, but also the childcare landlords, and the grocery store landlords, and a lot of other landlords. Not only does this increase the cost of living, it also lowers wages. What goes into landlords' pockets is not available for paying wages, for creating jobs, for purchasing inventory or equipment.
And until we correct that -- and it is readily correctable -- we aren't going to put even a tiny dent in poverty, here or anywhere else in the world.
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