Latest news with #UnitedWaysofCalifornia
Yahoo
15-05-2025
- Business
- Yahoo
‘Things are going to get worse': Over 3.8 million California families don't earn enough to cover basic needs
California may be one of the richest states in the country, but it's a difficult place to afford for many average families. Studies say the gap between high and low incomes is wider in California than in most other states. New research drives that point home even more. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Nonprofit United Ways of California recently released a report which says that a staggering 35% of California working households don't earn enough money to meet their basic needs. This means more than 3.8 million families in California are struggling financially. And if lawmakers don't intervene, the state could soon have a poverty crisis on its hands. There are different measures the government can use to define poverty, but it's important to recognize that the amount of money needed to survive can vary greatly depending on location. In its report, United Ways of California has created what it calls the Real Cost Measure (RCM) to show what the true cost of living in the state looks like using county and neighborhood data. By this measure, the group found that 35% of California working households can't meet their basic needs. That's roughly three times the proportion considered to be living in poverty when using the federal standard. And because so many families in California are stretched so thin, the group thinks lawmakers need to intervene. "If families get hit with anything — a car repair, a medical emergency, a rent increase — it can tip them into homelessness," said Elise Buik, CEO of United Way of Greater Los Angeles, to KABC It's also worth noting that the report is based on cost data from 2023. This means that it may not fully reflect the impact of rising costs since then. "Things are going to get worse for working families," said Pete Manzo, CEO of United Ways of California, told KABC. "Sources of public assistance are shrinking." The report makes it clear that securing employment is not the problem, since about 97% of the households said to be struggling have at least one working adult. The issue, it says, is that jobs don't provide fair and livable wages. The rising cost of living in California has outpaced income and income support. RentCafe reports that the cost of living in California is 50% higher than the national average. But wages don't reflect this. The average weekly earnings of all private employees in the U.S. was $1234.80 in March, according to the U.S. Bureau of Labor Statistics. The same figure for California was only slightly higher at $1,375.25 the same month. Simply put, having a job in California is not enough to guarantee a decent standard of living. U.S. News & World Report recently ranked California as the worst of the 50 states in the context of cost of living and affordability. The Public Policy Institute of California says that seven in 10 workers in the state have full-time jobs. But the median full-time worker in California only earns about $29 an hour, or $60,000 a year. Read more: You're probably already overpaying for this 1 'must-have' expense — and thanks to Trump's tariffs, your monthly bill could soar even higher. Here's how 2 minutes can protect your wallet right now An estimated 35% of workers have low-wage jobs that pay less than $19 per hour, which is consistent with the United Ways finding that 35% of California households don't earn enough to cover their basic expenses. Compounding the problem is the high cost of raising children. Households with children are much more likely to be struggling, per the report. An estimated 54% of households with children under six years old earn below the Real Cost Measure. The same holds true for 81% of single mothers with children under age six. In 2023, California ranked fourth in a study of the most expensive states for infant daycare. It also came in as the third most expensive state to hire a nanny with the weekly cost at $849. Subsidizing these costs or offering cost-effective alternatives could be instrumental to helping more families boost their earning power, progress in their careers and hang onto more of their paychecks. All told, it's clear that lawmakers need to take action to avoid having a growing number of Californians fall into poverty. And United Ways has some suggestions. Some solutions they propose include mandating higher wages, implementing guaranteed or universal basic income programs, and providing workers with government-sponsored retirement and health benefits. Subsidizing childcare costs could also be instrumental in helping California families make ends meet. Similarly, offering new tax credits, or expanding existing ones, for residents with young children who aren't yet school-aged could help the situation. The group would also like to see lawmakers expand access to health care, as well as expand access to free or low-cost higher education. This could be instrumental in helping lower-income workers boost their wages. On workers' end, California employees can try their best to improve their financial situations by seeking out jobs with benefits and focusing on employers that offer career advancement. But that's often easier said than done, especially for families who have the constraint of young children to work around. Of course, pursuing a degree is another step lower earners can take to boost their income. However, many can't afford the cost of higher education or even additional training. For those with children, juggling work and a degree simultaneously can be downright impossible. So all told, lawmakers need to dig deeper into the struggles of lower-income families – and step in with viable solutions. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Axios
05-05-2025
- Business
- Axios
Study: Bay Area families need $134,000 to cover basic needs
A family of four needs $134,211 per year on average to afford basic needs in the Bay Area, according to a new study that paints a bleak picture amid a deteriorating economic outlook. The big picture: As the Bay Area's cost of living has outpaced affordability, 27% of households here are struggling to meet basic needs, per the new analysis by anti-poverty nonprofit United Ways of California. That's almost 674,000 households. By the numbers: The $134,211 average for basic needs, what United Way calls the real cost measure (RCM), is an increase of nearly $15,000 since it was last calculated in 2023. A household would need to hold more than three full-time, minimum-wage jobs to achieve economic security for a family of four in the Bay Area. Meanwhile, the average household income in the region is just under $130,000, and 36% of all households spend more than 30% of their income on housing. Latinos and African Americans are disproportionately represented among households with incomes under the RCM. Zoom in: San Francisco, where the average household income is about $139,000, has the highest RCM among Bay Area counties. A family of four needs nearly $162,823 per year on average to afford basic needs. For two adults, it's $87,762. What they're saying:"No working household should be on the threshold of poverty with this annual salary. Yet, even with two working adults, people are still struggling," Keisha Browder, CEO of United Way Bay Area, told Axios. While measures like increasing the minimum wage and supporting tax credits have put money back in Californians' pockets, "more must be done to close the gap between wages and the real cost of living," Browder said, pointing to coordinated philanthropy as an increasingly important source. Between the lines: Unlike the federal poverty level, which is based primarily on food costs, the RCM provides a more accurate reflection of the cost of living, according to Browder. How it works: The study examines the prices of housing, health care, child care, transportation and taxes. Calculations are based on a configuration of two adults, one infant and one school-aged child, though other household types are included in its research database. Friction point: The findings come as San Francisco struggles with looming budget cuts that could impact public assistance and grant programs. Local nonprofits and community-based organizations have warned that Mayor Daniel Lurie's proposed cuts will increase the risk of youth exploitation, domestic violence and homelessness. The latest: At a City Hall hearing last Wednesday, Soma Pilipinas project manager Raquel Redondiez called on officials to not defund "the community infrastructure that the city relied on during the pandemic," saying the alternative will harm SF's most vulnerable residents. Attorney Emberly Cross of the Cooperative Restraining Order Clinic echoed the sentiment, asking officials to tell her "which of the 516 domestic violence survivors and their children the city wants to not receive legal services next year."
