Bill's calculation of
break-even expense and earning requirements (saving
thresholds) for Cleveland families
Callahan's Cleveland
Diary, 1/27/2005
|
| |
One
parent, two kids
|
Two parents, two kids
|
| Number of fulltime
earners |
One
|
One
|
One and a half
|
Two
|
| Size of family (2
kids) |
Three
|
Four
|
Four
|
Four
|
| Bare-bones monthly cost
of living: |
|
|
|
|
| Food and household
consumables ($50/person/week) |
$ 645
|
$ 860
|
$ 860
|
$ 860
|
| Rent or mortgage |
400
|
500
|
500
|
500
|
| Utilities (heat, light,
telecom, water, sewer) |
200
|
250
|
250
|
250
|
| Clothing ($25/person/month) |
75
|
100
|
125
|
125
|
| Car(s) |
400
|
400
|
700
|
700
|
| Health care (if fully
employer insured) |
50
|
50
|
50
|
50
|
| Child care (20 hrs @
$2/child) |
344
|
0
|
0
|
344
|
| Other and miscellaneous |
200
|
200
|
250
|
300
|
| Net income needed to
break even: |
|
|
|
|
| Monthly |
$2,314
|
$2,360
|
$2,735
|
$3,129
|
| Annual |
$27,768
|
$28,320
|
$32,820
|
$37,548
|
| Hourly (1 worker) |
$13.35
|
$13.62
|
|
|
| Hourly (1.5 workers) |
|
|
$10.52
|
|
| Hourly (2 fulltime workers) |
|
|
|
$9.03
|
Before-tax Income
needed, deducting local wage tax and FICA only
(i.e. assuming no state or Federal income
tax obligation) |
|
|
|
|
| FICA and local wage tax
withholding |
9.65%
|
9.65%
|
9.65%
|
9.65%
|
| Monthly income needed
before withholding |
$2,561
|
$2,612
|
$3,027
|
$3,463
|
| Annual |
$30,734
|
$31,345
|
$36,325
|
$41,558
|
| Hourly (1 worker) |
$14.78
|
$15.07
|
|
|
| Hourly (1.5 workers) |
|
|
$11.64
|
|
| Hourly (2 fulltime workers) |
|
|
|
$9.99
|
|