Assignment 10: Poverty In America

In the United States the poverty line identifies the amount of income a family requires to meet it's basic needs. In 2011, the official poverty line for a family of four (two parents, two children) was an annual income of $22,113 (Newman 335). For this assignment we are to make a list of all the goods and services the family of four below would need to function at a minimum subsistence level, i.e. the poverty line, and calculate what these costs would amount to in a year.

Hypothetical Family: There are two working parents, and two children. One child is seven and goes to elementary school, and the other is three and needs child car during the day.

Food- Food can be very expensive, and little things can add up. For this family of four, I would estimate the monthly grocery bill to be around $250 per month. 

Housing- In this situation, renting a house or apartment would probably be the only option. A two bedroom, one bath house or apartment (kids sharing a room) costs on average around $1,000 per month in rent and around $500 in utilities expenses. This would come to a total of around $1500 per month.

Transportation- 

Trying to figure out transportation is a tricky. There would probably only be enough for one car, at most. Gas prices fluctuate often but, with today's gas prices, I would assume that the cost is around $200 per month. The other parent would either have to car pool, take a bus, ride a bike, or walk to work depending on the location. Bus fair is around $1.50 one way, which adds up to around (assuming 6 days of work), $216 per month. Transportation costs would total to around $430 per month.

Clothing-  I think that clothing would be an easier thing to manage, but with two little kids who are constantly growing, the cost of clothing can be expensive. Second hand stores such as Goodwill and Salvation Army sell clothing essentials at low costs. Also, with two children hand-me-downs are always an option. New clothing is probably the last thing on the parents mind for themselves. I would estimate clothing to be around $20 per month. 

Medical Care- I asked my mom about this one because I had no idea what to say.  She said for a family of four with two kids, medical insurance would probably be around $8-900 dollars a month, unless it is covered by and employer. Therefor, it is unlikely that this family would have health insurance. Out of pocket medical expenses would be on average around $200 a month, just guessing. There might be some government assistance available, but I do not know what the family would pay out of pocket for that. 

Child Care- Child care can be extremely expensive. In the state of Minnesota, child care costs, on average can range from around $500 per month to around $800 per month. For a family who is living on around 22,113 per year, this is something that would be very difficult to afford. If there is a grandparent or other family member who is able to care for the three year old during the day, this would be the cheapest option. Some family members are even willing to watch children for free. My estimate for the monthly child care cost (at a day care center) for one child is around $600 per month.  

Entertainment- Entertainment is not a necessity. Things such as toys for the children, television, dining out, movies, are unnecessary costs that a family living at the minimum subsistence level would probably not spend too much on. From personal experience, I know that children can entertain themselves pretty easily, and make toys out of anything. All it takes is a little imagination. For entertainment I am going to say around $10 per month. Tops!

Other- This category includes costs for things such as toiletries, household items, etc. I would estimate around $30 per month 

Average Monthly Total: $3,040

Average Yearly Total: $36,480

After completing this exercise, my estimates ended up totaling to $14,367 more than annual income for families living at the poverty line. This number was extremely eye opening for me. I tried my best to come up with average costs that I thought would provide the bare minimum for a family of four. I can see from my results that I was extremely off on how much a family who is living under these conditions has to sacrifice to live.  I can not even begin to imagine how a family of four is able to live off of and annual income of $22,113. 

The quality of life for this family would be very poor. Everyday would revolve around trying to figure out how to make ends meet.They would be forced to sacrifice even the basics such as food, clothing,medical care in order to meet the more immediate needs such as shelter, bills,  transportation to get to jobs, and child care. Entertainment expenses do not exist. It is subsistence living. They would be forced to choose which items to cut out in order to afford others. For example, a family may sacrifice buying food to have dinner, in order to pay for gas to go to work the next day, or which utilities bills to pay. More affluent families take for granted things such as snack foods, cable television, computers, internet, cars, new clothes, toys and so on. Families living at or below the poverty line do not have the privileges many of us do not even give a second thought to. Adding to this stress, sudden expenses, such as medical emergencies or a broken down car, would be extremely detrimental to a family in this fragile financial state. A bill for a trip to the hospital could be an entire month’s grocery bill, or rent. I considered not including entertainment as an item, because it is not a necessary expense, but I figured with two kids it might be important to include things such as books (or going to the library, which may use gas), and inexpensive toys. 

Living in poverty in our society can have great impact on children and their access to opportunities later in life. Children growing up in poverty do not have much of a chance to live a different life in the future. According to Newman, "the lowest performing school districts typically have the largest percentages of students from poor families." This means that the children will most likely go to a school where funding is low, and teachers are paid poorly, therefore affecting the overall learning experience. "Without adequate resources, teachers become frustrated and do not teach, children become cynical and do not learn" (Newman 340). This can result in decreased motivation, lowered grades, and higher drop out rates of students growing up in poverty, making it harder for them to get into college, resulting in reduced job opportunities later in life. Other opportunities these children will have less access to is quality food and medical care, which go hand in hand. Unhealthy foods are a main cause of health related issues. An unfortunate reality of our society, is that healthy food is generally off limits o the poor since it is much more expensive. This leaves families to buy low quality foods that can have a significant impact of their health. Newman states that "among children, rates of chronic illness, injury, ear disease, asthma, and physical inactivity all increase as socio-economic status decreases" (Newman 339). Ironically, the families who are most prone to illness and disease, have little or no money to spare besides day to day living expenses, meaning medical issues may be put on the back burner. This is a sad and vicious cycle. 

It is a real eye-opener as a middle class person who takes for granted that I can do this blog on my laptop while eating a snack out of the refrigerator, waiting for a text on my iPhone.  We are so privileged to have the income to live comfortably, and an exercise like this reminds me how grateful we should be every day for our good fortune. We have a warm comfortable home, a car to drive with money for repairs and gas when needed. It is nothing to swing into Starbucks for a coffee, or Target for a new mascara. Meanwhile, families – people just like me except for being born into different family – can barely afford to put food on their table or take their crying baby to a doctor for treatment. It breaks my heart, and I don’t understand how in a world with so much affluence we cannot take better care of one another.  It is a shame. We –all of us living comfortably, should be ashamed. Our shame should make us go out and make a difference to help lift one another up – to help the less fortunate. Where do we start?