WHAT IS A GOOD SALARY FOR A FAMILY OF 4

WHAT IS A GOOD SALARY FOR A FAMILY OF 4? (PROVEN BY DATA)

what is a good salary for a family of 4
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To answer this question, let’s get a look at the median household income for the United States as an example. The most recent data we have, as at time of writing, is the median house income for the year 2020. So, we’ll be working with that.

According to the United States Census Bureau, the median household income in the United States is $67,521. The salary of this household therefore is $67,521 divided by 12, which is $5,627. 

Therefore, the median salary of an American household in 2020 is $5,627. This is a good salary to raise an average household.

What is the average number of persons in this American family within this time period?

Statista.com shows that the average American family as of 2021 consists of 3.13 persons per household.

Now, we’ve got the median income person and average person per household. To get the average salary, divide the monthly income by the number of persons in the family. This means that $1,798 was spent on each person in a household.

This is not what was needed to care for the average household, but what was spent caring for each individual in the average American household. Since we don’t have a scientific estimate to work with, we’ll work with the present data. 

Going by the analogy above:

In a family of 4, you’ll need $1,798 multiplied by 4, which is $7,192.

What is a good salary for a family of 4? Short answer:

If you live in the United States, you should earn about $7,192 in salary to take care of a family of 4.

The table below gives an overview of the analysis.

“WHAT IS A GOOD SALARY FOR A FAMILY OF 4” TABLE

MEDIAN HOUSEHOLD INCOME IN THE UNITED STATES OF AMERICA
DATAFINAL DATA
ANNUAL INCOME PER HOUSEHOLD$67,521$67,521
MONTHLY INCOME PER HOUSEHOLD$5,627$5,627
AVERAGE NUMBER OF PERSONS PER HOUSEHOLD3.133.13
AVERAGE MONTHLY INCOME PER PERSON5,627/3.13$1,798
INCOME FOR FAMILY OF 41,798*4$7,192
SOURCES: census.gov and statista.com 
Financeandi.com

The above data was calculated based on the Median House Income and not the Mean Household Income. 

Median Household Income is the income level at the midpoint of all households, ranked by their income. This form of averaging, takes into account what each person earns and and arranges this in ascending or descending order. The price at the midpoint in the series is taken or the average of the two middle numbers are taken.

This is a more accurate way to measure income in a large population without the excess of the wealthy skewing the data

The above data was given because we all love numbers and statistics. However for a more balanced approach we need to look at the question less from a data driven angle to a reality based angle.

Then I remembered I didn’t even introduce the article. 

Alright! Better late than never.

INTRODUCTION

Family comes first. That’s a major theme in the fast and furious sequel. Family means different things to many people. But for some, family means life.

So you’re planning on starting a family and now you’re counting the cost. You’ve decided you’re to start one and how children you hope to have. But you think to yourself. How much will it take to start and maintain a family? Or more precisely, how much should you earn to care for a family of 4. For the sake of data, we have analyzed what it takes to raise a family in the US. Now, let’s discuss the blank truth about this elusive question.

Now back to the question on what a good salary is for a family of 4. Before you go quit that job, hoping to get something better, here is your answer: IT DEPENDS… on several factors.

FACTORS TO CONSIDER WHEN DETERMINING HOW MUCH IS GOOD SALARY FOR A FAMILY OF FOUR

what is a good salary for a family of 4

  1. What country you live
  2. What part of the country you plan to live in.
  3. The standard of life you plan to live
  4. Your expenses
  5. The employment status of your spouse.
  6. Your habits
  7. Inflation

WHAT COUNTRY YOU LIVE IN

For international consumption, data pulled are often measured in terms of living conditions in the United States or other first world nations. This is roughly 6% of the world’s population. 

Well the vast majority of people fall under the remaining 94% of earth’s population. Therefore, except you’re from US or other major European states, using the $7,192 estimate is anything but practical. In fact, if you’re from african, you might never have such an amount in a single year, how much more having it as a salary.

 The point is, what makes a good salary for a family of 4 varies from country to country. Check your local statistics and make your call.

WHAT PART OF THE COUNTRY YOU PLAN TO LIVE IN

Inequality is not only measured across countries or continents. Even in the same sovereign territories, there can be vast gaps in standard and cost of living.

A city resident may earn more than his counterpart in a rural area. However, his expenses are usually higher too. So what will make a good income or salary for a country folk, might not even pay his bills.

YOUR EXPENSES

This is a trickery one. But it is likewise a determining factor in deciding how much is a good income to start a family. The reason is, your expenses can be roughly divided into your needs, your wants and emergencies. 

How much of your income you are willing to assign to each of these expense budgets will determine what you should expect as a good income to raise a family of four.

But as a good practice, you should not spend more than 30% of your income to attend to your wants or other optional expenses. This will leave more money to attend to the needs of your future or present family.

THE EMPLOYMENT STATUS OF YOUR SPOUSE

what is a good salary for a family of 4

The movement of feminism is gaining steam. This is one area where the male folks will need them more… bringing money home.

When deciding how much you should earn, you should also consider if your spouse will also do some full or part time jobs. This way, the expenses are shared between both spouses, so there is no pressure to be the sole source of income in the home.

If a wife will work for example, then she can take care of some minor expenses. This will reduce how much a man will need to earn to break even.

Of course, you want to walk away from divorce… I mean run away from it at all costs. Divorce is the last the thing you want to think about when planning a family. But with the divorce-trigger-happy world we live in today, factoring in divorce into your financial plans is a bit crazy idea. But the world is hardly sane, so no worries! We can do with one more lunatic.

YOUR HABITS

what is a good salary for a family of 4

What does habit have to do with the salary needed to raise a family of four? Everything! 

When discussing ‘expense’, we pointed out that it is a safe practice to not spend more than 30% of your income on your wants.

With bad habits, there is a dilemma. Certain habits cannot be counted as ‘needs’. Neither are they ‘wants’. They’re just on their own. Constantly creating multiple outlets to precious household income. 

If you have some harmful habits like gambling, smoking and alcoholism, you should factor this in too.

On the flip side, a person who has made saving and budgeting a habit, will need less to meet his monthly requirement. This is a possible habit that can influence your income for good.

INFLATION

One of the most important factors you should consider is inflation. This is so, because it is very difficult to prepare for it. But when it arrives, it can snap your income in half by simply doubling your expenses.

So even a $10,000 dollar salary is good income as long as prices remain the same. But in some countries, price is the only thing on earth that never obeys the law of gravity. 

Inflation is the only thing some African countries have sent to space. It just keeps rising and now its way above the atmosphere. No surprise if we see inflation from Africa or some other poor nations speed past the international space station in the coming days.

But you get the point? Inflation is a major factor to consider. Of course, you shouldn’t determine your salary worth by future inflation speculation. The key here is to prepare for it through savings, budgeting and investing.

You’ve seen the many factors that can determine what you should expect as a monthly income to raise a family of four. Now let us discuss why it matters that we put these factors into consideration.

WHY YOU SHOULD CONSIDER THE ABOVE FACTORS BEFORE DECIDING

what is a good salary for a family of 4

Going ahead to quit a job because you feel it pays less than you’ll need to start your future family is anything but prudent.

A family living in a city might earn twice as much as a similar family in the countryside, or a village as some might call it. 

Would you say those in the city fare better? Not until you consider each family’s expenses. The cost of housing in the city is sometimes double or even triple that of those in the countryside.

The cost of education and transportation in the city is usually multiples of what you’ll spend in a rural town.

Now let’s discuss this from the standpoint of two families living on both ends of the world. The amount it takes to raise a family in the US, for example, is far more than it will take to raise a family in a poor African nation.

With this said, we can agree that there is no single formula for the above question.

Now let’s this one step further.

WHAT IS A GOOD SALARY FOR A FAMILY OF 2?

this is really just a variation of the quest above. where 2 persons, four or five, the rule remain the same. for the sake of clarity, we’ll reanalyze the data again and see what we get.

henceforth, we can apply this rule to similar questions.

WHAT THE DATA SHOWS

WHAT IS A GOOD SALARY FOR A FAMILY OF 2
According to the United States Census Bureau, the median household income in the United States is $67,521. The salary of this household therefore is $67,521 divided by 12, which is $5,627. 
Therefore, the median salary of an American household in 2020 is $5,627. This is a good salary to raise an average household.
What is the average number of persons in this American family within this time period?
Statista.com shows that the average American family as of 2021 consists of 3.13 persons per household.
Now, we’ve got the median income person and average person per household. To get the average salary, divide the monthly income by the number of persons in the family. This means that $1,798 was spent on each person in a household.
This is not what was needed to care for the average household, but what was spent caring for each individual in the average American household. Since we don’t have a scientific estimate to work with, we’ll work with the present data. 
Going by the analogy above:
In a family of 2, you’ll need $1,798 multiplied by 2, which is $3,596.
What is a good salary for a family of 2? Short answer:
If you live in the United States, you should earn about $3,596 in salary to take care of a family of 2.

SALARY BREAKDOWN TABULATED

MEDIAN HOUSEHOLD INCOME IN THE UNITED STATES OF AMERICA
DATAFINAL DATA
ANNUAL INCOME PER HOUSEHOLD$67,521$67,521
MONTHLY INCOME PER HOUSEHOLD$5,627$5,627
AVERAGE NUMBER OF PERSONS PER HOUSEHOLD3.133.13
AVERAGE MONTHLY INCOME PER PERSON5,627/3.13$1,798
INCOME FOR FAMILY OF 41,798*2$3,596
SOURCES: census.gov and statista.com 
financeandi.com

A number of the data presented here were taken from section above. 

so the idea is, whether you’re looking for the answer to

1. What is a good salary for a family of 2?

or

2. what is a comfortable salary for a family of 5

All are variations of a single rule. therefore, the principle is one and the same.

CONCLUSION

So in conclusion, what is a good salary for a family of four? The short answer is $7,192 or more. 

A better answer is, take the above number and weigh it against other factors like:

  1. What country you live in, 
  2. What part of the country you plan to live in,
  3. The standard of life you plan to live,
  4. Your expenses,
  5. The employment status of your spouse,
  6. Your habits,
  7. Inflation,

And by the way, if you’re really planning on starting a family, remember to send me an invitation.

A little celebration with a generous reader is worth a-thousand-word article.

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