While some states in our country are too expensive for a family of four, families can keep their annual expense well under $50,000 in many states. States like New York and D.C. are quite expensive for a family of four, whereas people staying in Tennessee can meet their basic needs for $49,114 a year easily. The annual expense considered here includes the rent or mortgage, health care expenses, taxes, and other basic needs.
Based on the annual budget calculator by the Economic Policy Institute in 2016, the basic annual expense in a state should be less than $60,000 a year to fall under the affordable category. The findings released through a report also demonstrate the gap in cost of living in cities and a list of America’s six most affordable states to raise a family.
With the cost of living index at 92.5, the state of Arkansas becomes one of the popular and most affordable states in our country. The median home value here is under $120,000, which is close to $65,000 less than the average national index. The tax rate in this state is very low, including median tax rate at 0.52 percent. Renting a place in Arkansas is also cheap with a median rent price of $850.
This neighbor state of New York is one of the most affordable in the country. The state law offers some of the best and the biggest benefit for the families. Even though the median household income is $65,321, the state benefits go in favor of the families who live here. Employees and workers can go on a paid leave with family, but still receive their two-thirds of pay for the six weeks period. The new emendation in state laws now focuses on changing the Pre-K education programs. Under this new law, parents can send their children under 5 to this program without paying anything.
Nebraska is another top choice for families looking for an affordable state to live and raise their children. The overall median monthly expenses in this state are comparatively less with the listing price for rent at $149,000 and $1,238. The major expense of a family goes towards the food and childcare costs. What makes the state to stand out is the lower costs accompanied by higher-than-national-average earning potential as well.
Unlike many other neighbor states, the cost of living index in Kentucky is 90.0. The state is known for its low living costs, which include grocery, utility, and monthly average costs. Whether you choose to rent a home or buy one, you can easily keep your annual expenses well under $65,000 to raise your family in Kentucky. Plus, the state’s lower median property tax rate of 0.72 percent is something you cannot ignore.
With some of the lowest food and childcare costs in the country, Utah surely lands at the second position when it comes to the list of the most affordable states. The average food cost in Utah is 7.8 percent lower than the average cost in the nation. Similarly, childcare costs is $1,100 cheaper per year. Though the state lacks a family leave policy, families can enjoy the decent monthly wage and low food and child care costs here. The median household income in this state is 60,053. Home buying and renting in Utah is affordable too.
When it comes to raising family, Tennessee surely stands atop the list, as the place where childcare costs are second-lowest. Working mothers can opt for full-time infant and child-care by just spending $5,857 a year. Housing and food costs are comparatively cheaper too. Families can spend just under $200 for monthly rent. Even though the state’s median income is $30,000 lower than the national median, people staying here can always enjoy the low housing costs, food and other miscellaneous costs for an affordable living.
Raising a family takes a lot of work, not to mention a lot of cash. If you are looking for the best states to get kids grown up fast, take a look at a few on this list.