Cost of Living Soars: Families Struggle to Keep Up
Many American families find themselves battling rising living expenses. A recent study shows that to live comfortably, a family of four needs six figures annually, a significant challenge for many households.
Income vs. Expenses
Although the median U.S. household income rose between 2022 and 2023, a comfortable living standard remains out of reach for many. A study by SmartAsset revealed the income needed for a family of four to live comfortably. “Living comfortably” includes 50% for necessities, 30% for wants, and 20% for debt and savings.
In Massachusetts, the most expensive state, a family requires over $300,000 per year to reach that threshold. The cost of living in the state increased over 4% from 2024, exceeding the national average. Childcare costs, particularly in Boston, add significantly to the burden.
State-by-State Breakdown
Mississippi, the most affordable state, requires around $186,618 annually for a family of four. However, three states – Vermont, New Jersey, and Montana – are rapidly catching up with double-digit growth from 2024.
Here’s the income needed for families of four to live comfortably in 2025, as determined by the study:
State Income Needs
Alabama
Income needed for a four-person family, 2025: $194,522. Change from 2024: 0.47%
Alaska
Income needed for a four-person family, 2025: $259,002. Change from 2024: 6.76%
Arizona
Income needed for a four-person family, 2025: $237,952. Change from 2024: 3.17%
Arkansas
Income needed for a four-person family, 2025: $193,773. Change from 2024: 7.18%
California
Income needed for a four-person family, 2025: $287,456. Change from 2024: 3.88%
Colorado
Income needed for a four-person family, 2025: $273,728. Change from 2024: 3.30%
Connecticut
Income needed for a four-person family, 2025: $290,368. Change from 2024: 3.75%
Delaware
Income needed for a four-person family, 2025: $223,142. Change from 2024: -2.54%
Florida
Income needed for a four-person family, 2025: $217,651. Change from 2024: 4.10%
Georgia
Income needed for a four-person family, 2025: $210,829. Change from 2024: -0.94%
Hawaii
Income needed for a four-person family, 2025: $294,362. Change from 2024: -0.08%
Idaho
Income needed for a four-person family, 2025: $223,142. Change from 2024: 5.63%
Illinois
Income needed for a four-person family, 2025: $234,291. Change from 2024: 1.00%
Indiana
Income needed for a four-person family, 2025: $220,230. Change from 2024: 6.91%
Iowa
Income needed for a four-person family, 2025: $202,675. Change from 2024: -4.13%
Kansas
Income needed for a four-person family, 2025: $200,678. Change from 2024: 1.99%
Kentucky
Income needed for a four-person family, 2025: $192,941. Change from 2024: 1.49%
Louisiana
Income needed for a four-person family, 2025: $199,597. Change from 2024: 5.27%
Maine
Income needed for a four-person family, 2025: $239,699. Change from 2024: 4.42%
Maryland
Income needed for a four-person family, 2025: $259,168. Change from 2024: 8.23%
Massachusetts
Income needed for a four-person family, 2025: $313,747. Change from 2024: 4.17%
Michigan
Income needed for a four-person family, 2025: $207,584. Change from 2024: -3.22%
Minnesota
Income needed for a four-person family, 2025: $251,264. Change from 2024: 2.65%
Mississippi
Income needed for a four-person family, 2025: $186,618. Change from 2024: 4.96%
Missouri
Income needed for a four-person family, 2025: $218,317. Change from 2024: 7.94%
Montana
Income needed for a four-person family, 2025: $234,957. Change from 2024: 11.14%
Nebraska
Income needed for a four-person family, 2025: $215,738. Change from 2024: 1.25%
Nevada
Income needed for a four-person family, 2025: $238,534. Change from 2024: 0.53%
New Hampshire
Income needed for a four-person family, 2025: $259,501. Change from 2024: 6.31%
New Jersey
Income needed for a four-person family, 2025: $282,714. Change from 2024: 12.55%
New Mexico
Income needed for a four-person family, 2025: $220,813. Change from 2024: 8.28%
New York
Income needed for a four-person family, 2025: $276,973. Change from 2024: -0.72%
North Carolina
Income needed for a four-person family, 2025: $210,746. Change from 2024: 0.68%
North Dakota
Income needed for a four-person family, 2025: $207,334. Change from 2024: 2.55%
Ohio
Income needed for a four-person family, 2025: $220,563. Change from 2024: 5.37%
Oklahoma
Income needed for a four-person family, 2025: $208,749. Change from 2024: 7.54%
Oregon
Income needed for a four-person family, 2025: $261,914. Change from 2024: 1.78%
Pennsylvania
Income needed for a four-person family, 2025: $248,435. Change from 2024: 7.80%
Rhode Island
Income needed for a four-person family, 2025: $256,672. Change from 2024: 2.97%
South Carolina
Income needed for a four-person family, 2025: $208,333. Change from 2024: 3.77%
South Dakota
Income needed for a four-person family, 2025: $197,933. Change from 2024: 2.76%
Tennessee
Income needed for a four-person family, 2025: $200,678. Change from 2024: 2.51%
Texas
Income needed for a four-person family, 2025: $204,922. Change from 2024: 1.78%
Utah
Income needed for a four-person family, 2025: $231,046. Change from 2024: 5.75%
Vermont
Income needed for a four-person family, 2025: $286,790. Change from 2024: 15.48%
Virginia
Income needed for a four-person family, 2025: $241,696. Change from 2024: 2.76%
Washington
Income needed for a four-person family, 2025: $277,888. Change from 2024: 7.95%
West Virginia
Income needed for a four-person family, 2025: $195,354. Change from 2024: 3.16%
Wisconsin
Income needed for a four-person family, 2025: $225,555. Change from 2024: 0.22%
Wyoming
Income needed for a four-person family, 2025: $209,914. Change from 2024: 3.19%
These figures underscore the economic challenges families face across the country. As of May 2024, the inflation rate is at 3.3%, slightly elevated, further squeezing household budgets. (Source: U.S. Bureau of Labor Statistics)
Future Outlook
The data reveals a complex economic picture, with some states experiencing shrinking costs and others seeing significant increases. Careful financial planning is essential for families to navigate these varying costs and maintain their quality of life.
