Budgeting for Poverty Story County, Iowa Mid-Iowa Community Action, Inc. Helping People. Changing Lives. Building Communities.

The federal government says a family of four making $22,811 a year is living in poverty. SOURCE: Federal Register, 2011 Mid-Iowa Community Action, Inc. Helping People. Changing Lives. Building Communities.

Mid-Iowa Community Action, Inc. Helping People. Changing Lives. Building Communities. But how far does $22,811 go today? How do you budget? You make the hard choices. What do you leave out?

Budgeting for Poverty  Housing  Utilities  Transportation  Food  Health Care  Child Care Mid-Iowa Community Action, Inc. Helping People. Changing Lives. Building Communities.

Budgeting for Poverty A family of four making less than $22,811 a year will spend on average $6,200 annually for the most basic of shelter. Housing $22,811 yr. Mid-Iowa Community Action, Inc. Helping People. Changing Lives. Building Communities. $16, ,200

Budgeting for Poverty  Housing  Utilities  Transportation  Food  Health Care  Child Care Mid-Iowa Community Action, Inc. Helping People. Changing Lives. Building Communities.

Budgeting for Poverty To keep a family of four warm and secure, the average expense for utilities and public services runs $2,900. Utilities Mid-Iowa Community Action, Inc. Helping People. Changing Lives. Building Communities. $16,611 yr. - 2,900 $13,711

Budgeting for Poverty  Housing  Utilities  Transportation  Food  Health Care  Child Care Mid-Iowa Community Action, Inc. Helping People. Changing Lives. Building Communities.

Budgeting for Poverty A family at the poverty line will spend $5,800 a year to own and maintain a used car, and fill it with the gas and oil needed to go to work, to child care, to the store, etc. Transportation Mid-Iowa Community Action, Inc. Helping People. Changing Lives. Building Communities. $13,711 yr. - 5,800 $ 7,911

Budgeting for Poverty  Housing  Utilities  Transportation  Food  Health Care  Child Care Mid-Iowa Community Action, Inc. Helping People. Changing Lives. Building Communities.

Budgeting for Poverty Even with public assistance such as food stamps, families making less than $22,811 will spend $4,400 a year for food at home and away. Food Mid-Iowa Community Action, Inc. Helping People. Changing Lives. Building Communities. $ 7,911 yr. - 4,400 $ 3,511

Budgeting for Poverty  Housing  Utilities  Transportation  Food  Health Care  Child Care Mid-Iowa Community Action, Inc. Helping People. Changing Lives. Building Communities.

Budgeting for Poverty Even if an employer contributes part of the costs of health insurance, a family of four at the poverty line would still pay, on average, $2,700 a year for health and medical expenses. The cost of not having health insurance, however, could be devastating. Health Care Mid-Iowa Community Action, Inc. Helping People. Changing Lives. Building Communities. $ 3,511 yr. - 2,700 $ 811

Budgeting for Poverty  Housing  Utilities  Transportation  Food  Health Care  Child Care Mid-Iowa Community Action, Inc. Helping People. Changing Lives. Building Communities.

Budgeting for Poverty The costs for child care for two children, five and under, can reach over $12,000 a year. Even with child care subsidies, low income families with two small children will spend on average $3,000 a year. Child Care Mid-Iowa Community Action, Inc. Helping People. Changing Lives. Building Communities. $ 811 yr. - 3,000 - $ 2,189 Source:Economic Policy Institute, November 2005

Budgeting for Poverty So now you’re $2,189 over budget, and you still don’t have everything you need. Mid-Iowa Community Action, Inc. Helping People. Changing Lives. Building Communities. Toiletries School Supplies Holiday Gifts Life Insurance Furnishings Birthdays Recreation Cleaning Supplies Education Clothes Shoes Entertainment

These are the decisions that people are forced to make every day when they live in the state of poverty. Mid-Iowa Community Action, Inc. Helping People. Changing Lives. Building Communities.

Additional notes from the class readings…

Poverty in Rural America

The Poverty Pie Chart Nearly two-thirds of all poor people (130% of poverty line) work at least 27 weeks. Most persons of these persons are seeking work when they are not working. About 15% of all poor people work full time. About 25% of children in America live in poverty. About 13% of the elderly live in poverty. Some persons cannot work because of physical, intellectual, or emotional disabilities.