Mapping Family Finances: The Best And Worst States To Raise A Family

A Note From Patricia:

Hello and welcome to Forbes Advisor’s Weekly Brief, where each week we dive into the realities of consumer finance and empower you with the knowledge to help make your financial journey easier.?

As the old saying goes, it’s all about “location, location, location.” Deciding where your family should live and settle down is a huge factor to consider in your financial planning strategy, as it can strongly influence the cost of food, education, health care, housing, and even your salary.?

This week, we’ll unveil the best and worst states to raise a family based on the area’s average salary for a two-income household with a child.?

We’d love to hear your thoughts or experiences in the comments section below. Have a wonderful day and hope to hear from you soon.

Sincerely,

Patricia Louis

Editor, Forbes Advisor

Mapping Family Finances: The Best And Worst States To Raise A Family

Although inflation is slowing, families across the nation are grappling with financial difficulties including the cost of food and housing being significantly higher than before the COVID-19 pandemic. These inflated prices mean the average salary in some states may leave Americans with little breathing room in their budgets after paying for necessary expenses.

To determine the best and worst states for raising a family based on average salary, Forbes Advisor compared the average income of two-earner households with one child to the minimum income needed to cover basic living costs such as housing, utilities and food. Here’s what we found:

The best states to raise a family:

1. Connecticut: The average two-earner household in this state earns $144,146 a year, which is 66.37% more than the minimum income needed to cover basic living expenses in Connecticut, according to our analysis. Despite high housing costs, the Constitution State has one of the highest median incomes in the country, leaving plenty of wiggle room in most budgets.
2. New Hampshire: Not only does the Granite State have no income tax, but it also boasts an average dual-income household salary of $135,599, which is about 64% higher than the income needed to cover necessary expenses, making this state an excellent choice for raising a family and saving money.

The worst states to raise a family:?

1. Hawaii: Despite the beautiful beaches and scenery, life in the Aloha State isn’t as idyllic as it may seem. The average dual-income household brings in $125,841 annually—just 26% more than the minimum for basic costs.?
2. Nevada: The Silver State ranks second for the worst states for making ends meet. With a median income of $105,161 annually, Nevadan families are left with about a 27% surplus after covering basic costs.

To see where your state ranks based on salary, read more here .

Related Stories:?

• Monthly Budget Calculator (50/30/20)
• 9 States With No Income Tax ?
• Cost Of Living Calculator ?

Here’s what else is going on in the news this week:

• March 2024 Stock Market Forecast The 2024 stock market rally has picked up steam as investors consider whether the latest batch of economic data will force the Federal Reserve to delay its upcoming—and long-awaited—interest rate cuts.
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