
For some Californians, high transportation costs put owning a car out of reach
His 20-mile journey from South Los Angeles to the San Fernando Valley takes about 90 minutes each way.
"Half an hour just to get to downtown, to get to the train station, then another half-an-hour just to get from the train station to get here, and then the bus will take me straight to my job," Andrade told CBS News. "I would do this journey every day just to get my family through."
His journey was easier when he had a car. But following a crash, fixing it just cost too much for Andrade, who is the sole provider for his family.
"It's almost like a struggle, every paycheck," Andrade said.
To cut down on daycare costs, his wife stays at home with their young son.
"It's heart wrenching, you know," Andrade said. "Because it makes me feel like I'm not enough, you know, as a human. Like, I'm not really doing much."
Andrade's family's struggles mirror that of millions in California. According to a study released earlier this year from the nonprofit United Way, 35% of California households — or about 3.8 million households — do not make enough to afford basic costs of living, such as rent, groceries and gas.
United Way CEO Pete Manzo says the study is just a snapshot of a national problem.
"It's a crisis we've been living with," Manzo told CBS News. "It's like we're running a high fever. We have too many households where people are working hard and they can't earn a decent standard of living."
One of the biggest challenges is access to transportation. AAA says the cost of owning a new car — including monthly payments, insurance, maintenance and fuel — runs more than $12,000 per year for the average American household.
"You're basically saying to a family, it's going to be a $1,000 a month or more to get to and from work, to get to and from school," Manzo said. "It's not cheap."
The costs may not be as high in some other states as in California. But nationwide, taking into account inflation, the financial burden of transportation is steadily rising, along with housing and childcare, United Way analysis has found.
Manzo says that advising families in California to move somewhere more affordable isn't necessarily a practical solution.
"For one family, that might be a decent idea," Manzo said. "But it's pretty disruptive to just pick up and leave all your other family relationships and all your community ties to move somewhere to make it cheaper...Expecting them all to move somewhere cheaper just doesn't make sense."
For now, Andrade is saving up to afford a car for his family.
"They tell me, you know, don't give up, you got this."
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
19 minutes ago
- Yahoo
I'm a Retirement Planner: 5 Best Money Tips for Supplementing Social Security
Retiring comfortably often means getting creative with your income sources. If you're counting on Social Security, for many retirees that alone is not enough income to live on. Find Out: Read Next: But how does one go about supplementing Social Security? Certified financial planner Christopher Stroup, owner of Silicon Beach Financial, offered some strategies for diversifying income streams, creating tax-efficient strategies and looking at other ways to bring in income. Delay Social Security If you're thinking of taking Social Security benefits as soon as you can, it may behoove you to delay them, Stroup said, to maximize the benefits you are entitled to. Stroup pointed out that delaying Social Security can boost lifetime benefits by 24% to 32%, making it a powerful long-term strategy. 'To bridge the gap, retirees can tap brokerage accounts, part-time work or laddered CDs. Ideally, leverage sources that avoid triggering early IRA withdrawals or higher tax brackets prematurely.' Be Aware: Maintain Part-Time or Freelance Work In combination with delaying Social Security, retirees can continue working part time while using high-yield savings or CDs for short-term income, Stroup suggested. You can also tap into home equity (via downsizing or a reverse mortgage) to stretch limited savings. 'A tailored plan can help prioritize predictable, low-risk income sources without sacrificing future stability,' Stroup said. Even modest income from freelance consulting, tutoring or remote support roles can reduce withdrawal pressure on retirement accounts, Stroup said. 'We often help retirees match their skills to flexible, low-stress work that keeps them socially engaged and financially confident without disrupting their lifestyle.' Set Up Investment Income If you've got the time to make investments for some years prior to retirement, look into setting up 'predictable cash flows like bond ladders or qualified dividend income to cover essential expenses,' Stroup urged. Then, let growth assets ride for longer-term needs. This 'income floor + growth cushion' approach adds both stability and resilience, he explained, particularly for tech-savvy retirees who want flexibility without excess risk. On the topic of risk, he reminded retirees that 'the goal isn't to eliminate risk, it's to align it with purpose.' In his practice, they help clients separate assets by time horizon, with safer investments for near-term needs and growth-oriented assets for later years. 'This barbell strategy creates peace of mind and guards against inflation without overexposure to volatility.' Take Advantage of Tax Credits and State Programs Depending on your income level and circumstances, there may also be tax credits such as the saver's credit, energy efficiency tax credits or Medicare Savings Programs that you qualify for, Stroup said. Look into state-level benefits, as well, such as property tax relief or utility subsidies. Consider a Strategic Roth Conversion Lastly, Stroup said that many retirees overlook the power of strategic Roth conversions early in retirement. While this strategy may not work for every retiree, this timing can be 'a prime window' to convert taxable dollars at reduced rates, which cuts future tax bills and increases flexibility later, he said. 'It's one of our favorite proactive planning tools.' More From GOBankingRates 6 Big Shakeups Coming to Social Security in 2025 This article originally appeared on I'm a Retirement Planner: 5 Best Money Tips for Supplementing Social Security
Yahoo
19 minutes ago
- Yahoo
Jonathan Kuminga declines two-year extension from Warriors: Report
Jonathan Kuminga reportedly declined another offer from the Golden State Warriors as he seeks a longer extension with the franchise. On Wednesday, ESPN reported that the Dubs have attempted to secure a deal with Kuminga, who turned down the offer due to the terms. According to Shams Charania and Anthony Slater, the Warriors are offering Kuminga a two-year deal worth $45 million. However, a team option for the second year of the contract, as well as the team's refusal to maintain a built-in no-trade clause, has become the point of contention for the 22-year-old rising star. Golden State signed Kuminga to a four-year rookie contract after drafting him with the seventh pick in 2021. He has since been a consistent role player for Steve Kerr's side and contributed to their 2022 title win. Kuminga's agent, Aaron Turner, met with the team during the Summer League in Las Vegas and presented some ideas for a deal, including a three-year, $82 million deal. If it materializes, the deal would keep Golden State below the second apron and allow them to use the taxpayer midlevel exception, per ESPN. Over the past month, Kuminga and Turner have explored the market for sign-and-trade options, which led to promising conversations with the Sacramento Kings and Phoenix Suns. The conversations reportedly led to proposals of four-year deals worth around $90 million, with a player option for the final season.
Yahoo
19 minutes ago
- Yahoo
The Palo Alto-CyberArk Deal Is On. Here's Why CyberArk Shares Are Slipping.
A big cybersecurity deal that fired up investors earlier this week is now official. Palo Alto Networks (PANW) on Wednesday said it would acquire CyberArk (CYBR) in a cash-and-stock deal that values the latter company at about $25 billion. The deal has Palo Alto paying $45 in cash, as well as 2.2005 shares of its stock, for each CyberArk share; that comes out to about a 9% premium to CyberArk's Tuesday's close. (Visible Alpha data puts CyberArk's market value at a bit under $22 billion.) Palo Alto said it expects the deal to close in the second half of its next fiscal year, which starts in August. It's projected to improve gross margins immediately and to lift free cash flow per share in fiscal 2028. Shares of CyberArk were recently down less than 1%, while Palo Alto's were off nearly 7%. While the move in CyberArk may seem unusual for a company set to be purchased, it reflects in part a jump already seen this week when reports that a deal was in the works hit investors' screens. The shares closed yesterday about 15% above where they ended Friday. "Our market entry strategy has always been to enter categories at their inflection point, and we believe that moment for Identity Security is now," Palo Alto CEO Nikesh Arora said in a statement. ("Identity Security" is broadly the field of managing access to digital tools, services and platforms and defending against threats.) Read the original article on Investopedia Sign in to access your portfolio