Updated
Updated · The New York Times · Jun 27
U.S. Families on $130,000 Fall Into the Red as Prices Outpace Wage Gains
Updated
Updated · The New York Times · Jun 27

U.S. Families on $130,000 Fall Into the Red as Prices Outpace Wage Gains

2 articles · Updated · The New York Times · Jun 27

Summary

  • $130,000 no longer covers basics for a model U.S. family of four, with the household now ending up in the red after paying for housing, health insurance and day care.
  • Over the past 18 months, rising costs erased gains from higher wages and recent tax cuts, leaving that family with more than $1,000 less than it had a year and a half ago.
  • The findings come from research based on data, interviews and a survey of 1,000 people, arguing that headline indicators like solid growth, low unemployment and strong stock markets miss household financial strain.
  • The analysis says even relatively well-off families have little room for shocks or extras such as a car repair, vacation, new car or a third child, underscoring pressure beyond traditional economic metrics.

Insights

As the economy grows, why are more American families financially falling behind?
If a $130,000 income can't cover family basics, what does financial security mean today?