Chapter 10: Family Expenses

For my family of four here are my wages and expenses for each month:

Income of parents: $2,772

Car Insurance: $35

Fuel: $200

Medical: $190

Dental: $38

Daycare: $375

Food: $300

Clothing: $100

Entertainment: $50

Energy: $100

Apartment rent (2 bedroom) gas and water included : $925

Annual Substance Budget: $27756

I based a lot of this information off of what my parents budget out on a monthly basis.

For this budget I could reduce the amount of money we spend on Medical, Dental, Entertainment, Clothing, and Fuel. These things could be reduced based on how much we spend on luxuries. Also public transportation can be used to reduce the amount spent on gas. These things will cut out the benefits of having things that are considered to be a privilege for some people. Shopping at thrift stores will reduce the amount spent on clothing as well. The need for health care is essential but when budgeting out necessities there are other things such as a place to live and food that take priority. The medical costs can be cut by applying for Medicaid (335).

This sort of lifestyle is hard on the average family. Families need to determine what necessities are and what can be defined as luxuries. To a family that is more well off the things that are determined to be luxuries to one family may seem to be absolute necessities to another. This shows the difference in class structure and how each of them views life on a day to day basis.

My hypothetical family will struggle to make ends meet on a monthly basis. They will not have much money to spend on fun things for the kids that other families may have. They will spend time budgeting their money to make ends meet and probably have to ask for help once in a while. There will be very little extra expenses month to month. Trying to put away money for extra things such as vacations and savings accounts will be rare.

This type of lifestyle will make it harder on the children. They will not have as many luxuries as other children in their classes. They will be enrolled in public schools that tend to be held at a lower standard to private schools. They will be given hand-me-down clothing and may be spoiled once in a while with new clothes. When they get older they will have to find their own jobs to pay for their own entertainment and the clothing that they would like.  Their parents will have to pay for other things such as rent and food so they will not have much extra money for the things their kids want. The kids will most likely have to pay their way through college or find loans to cover the expenses. Their parents will not have been able to save up much for their college education throughout their life but will help where they can.

This hypothetical situation is reality for a lot of families throughout the United States. Many of the United States families live below the poverty line, which identifies the amount of yearly income a family requires to meet its basic needs (335). This family may be defined as being within the working class where the jobs are at high chance of being replaceable and a chance of being laid off.  The realities of expenses are scary and as kids grow up they realize the impact of what money really means to society. It determines where you live, your health, and how comfortable you are on a day to day basis. In the end money really does hold importance in the way people function throughout their lives.