Budgeting for PovertyBudgeting for Poverty

The federal government says a The federal government says a family of four making $18,852 a family of four making $18,852 a

year is living in poverty.year is living in poverty.

But how far does $18,852 go in America today?But how far does $18,852 go in America today?

How do you budget? What do you leave out?How do you budget? What do you leave out?

The median fair-market annual rent for a two-bedroom apartment in DuPage County

is $11,820.

from www.dupagehousing.org

$18,852- 11,820___________________________

$ 7,032

Families of four earning less than $19,000 annually will not owe

federal taxes. State taxes, however, will reduce their income

by 3% or $565 annually. This family would also pay $1168

towards Social Security and $273 for Medicare, for a grand total of

$2006.

- 2,006___________________________

$ 7,032

$ 5,026

www.irs.gov and DPC payroll department

To keep a family of four warm and secure, the average expense for utilities and

public services runs $1,008 a year.

from www.dupagehousing.org

$ 5,026- 1,008___________________________

$ 4,018

For two people to ride the bus daily to and from work in DuPage County,

(assuming that there is public transport in the vicinity of home and

work) the annual

one round trip per day, five days a week – from www.pacebus.com

- 1,512___________________________

$ 4,018

$ 2,506

combined transportation cost would be about $1512. Additional trips—to the store, doctor’s

office, wherever—would raise the total significantly.

Families making less than $18,852 on average spend $5,200 a year on food. Even

with public assistance, such as food stamps, a family at the poverty line will still need to

spend $1,552 annually on food.

from Household Food Security in the United States, 2001, USDA and Paula Drake, DPC Senior Services

- 1,552___________________________

$ 2,506

$ 954

Families living at or below the poverty level are eligible for state subsidized

child care programs. In DuPage County the estimated annual co-pay for a

family with two children attending day care is $1144.

www.dhs.state.il.us/chp/ofh/MIH/eligcalc.asp

- 1,144___________________________

$ 954

$ - 190

So now you’re $190 over budget, and you still don’t have everything you need.

What do you leave out?

Poverty in AmericaPoverty in America

35.9 million, or 1 out of 8, 35.9 million, or 1 out of 8, Americans are living in poverty.Americans are living in poverty.

2.6 million Americans work full-time 2.6 million Americans work full-time but don’t earn enough to raise them but don’t earn enough to raise them

above the poverty line.above the poverty line.

Illinois experienced the 4Illinois experienced the 4thth largest largest increase in poverty in the United increase in poverty in the United

States, 1.2%, in 2002-2003.States, 1.2%, in 2002-2003.From www.usccb.org/cchd/povertyusa/povfact11.htm