Standard of living

1. Standard of living A measure of the quality and quantity of goods and services enjoyed by a person, group or nation.

2. A child born in 2001 to become 18 in 2017. This is you! • Agriculture secretary Dan Glickman reported (April 27, 2000) a family can expect to spend $160,140 for food, shelter and other necessities to raise a child to the age of 18. • Low income family – $117,390 • Middle income family – $160,140 • Upper income family – $233,850

3. Geographic variations • Cost of raising a child is higher in the urban West, followed by the urban Northeast and the urban South. • Families living in the urban Midwest and in rural areas have the lowest child rearing expenses. (USDA news releases)

4. Recreational Expenditures • Lower income families are doing more recreation because of cheaper activities and the government invested heavily in recreational facilities. The wealthy at one time were the only ones who were afforded these luxuries. (National Bureau of Economic Research)

5. Dual Career Middle Class Working Families • The husband and wife in today’s working family now must do three jobs, the unpaid caring one and the two wage-earning ones. • Work places are basically still geared toward the idea that the employees are full time males with the females at home to do all home and community chores.

6. Since Dec. 2007 more than eight million people have lost their jobs • What are they going to do? • Who will pay their bills? • How will they get their basic needs?

7. Retirement • An older couple needs an income of at least $10,000 to escape poverty. • Medical expenses may increase • Most would like to maintain the same living standard in retirement. (National Center on Women Aging) • When should you start planning for your future?

8. Personal Bankruptcies • In 1978 – 200,000 personal bankruptcies • Now over one million personal bankruptcies each year. • Three-fourths of the American families have one or more credit cards with outstanding balances. • A typical household gets 41 pre-approved credit offers per year totaling $243,000 in potential credit card debt. (National Center on Women Aging)

9. Standard of living • Why do people work? • You must pay for what you want and need to survive. • We all have a different standard of living, depending upon our choices.

10. Standard of Living Group Activity • You will be divided into groups of four. • Each group has some decisions to make as a group. • All members are to work together.

11. Family of four • $10.00 per hour • 40 hours per week • Totals $400.00 per week • 4 weeks per month • Totals $1600.00 per month per person • Minus Federal and State taxes along with Social Security • Leaves $1104.00 per month per person

12. Two people working = $2208.00 • The family must have their needs provided • Food • Clothing • Water/Sewer • Housing and utilities

13. Car • What type of car? • How many cars? • How old will the car be? • What will the car have on it?

14. Housing • House or Apartment? • Rent or own? • How many bedrooms? • How many bathrooms? • What location? • What extras will be provided as part of the housing cost?

15. Insurance • State law mandates car insurance • Do you need medical insurance? • Do you need disability insurance? • Do you need vacation insurance? • What types of insurance are needed today?

16. Other expenses • Cable TV • Electric bill • Natural gas bill • Furniture payments • Savings • College funds • Dental bills • Car gas and upkeep • Recreation • Eating out • Entertainment • Vacations • Telephone bill • Doctor’s bill • Movies/dances • Cell phone • Internet • What can you afford???? • What can you do without?

17. After our groups/families have completed their budget for their standard of living. We will take a look at the classes choices and discuss the differences. • Each group spent different amounts on different items. Why? • Does the family decide what to purchase? • When is the choice taken away from the family?