A family wage is the income needed to cover basic costs such as housing, food, utilities, childcare, and transportation. It differs from a living wage, which is the amount needed for an individual to maintain a specific standard of living. Calculating a family wage can be difficult due to subjective views on what constitutes basic necessities. Governments often set a minimum wage, but this may not cover the cost of living. Lack of information on family wages can make it challenging for families to decide where to live.
A family wage represents an amount of income sufficient for a family to cover its basic costs. Costs included in this figure include housing, food, utilities, childcare, and transportation, among other items. The number usually does not include any support from government agencies or other relatives who may give the family money. The family wage contrasts with a living wage, which is the amount an individual needs to maintain a specific standard of living. Individual states, regions, or countries often publish information regarding both the household and the living wage for its area.
A difficult part of calculating the family wage is determining what falls into the category of basic necessities. Whether the wages should cover these items can be subjective as to whether different families view the different items as a necessity. For example, transportation in a city can be a bus pass, as the family can use public transportation to get around the city. Another city may require a sport utility vehicle as the rugged terrain makes it difficult to offer public transportation. This problem also manifests itself in other items, such as housing, food, and utilities, as household sizes can differ for different areas.
In many cases, there is no standard calculation for the family wage. States, regions, or countries may offer basic formulas or online calculators that provide basic information about what a family might need to cover basic needs. Most of these formulas and calculators use predetermined specifications, such as a family of four or average costs for normal expenses in the area. Such stipulations are often disclosed so that a family can understand why the figures are higher or lower than they believe are necessary. A family of five would have to modify a formula if it considers a family of four as the basis for the calculation.
Governments often set a minimum wage for workers in specific areas in order to provide a living wage for individuals. Often, the minimum wage generally does not meet cost coverage needs as part of a family wage calculation. In some cases, a family may need two incomes to cover the basic needs of their lifestyle. Two full-time minimum full-time wage earners may or may not be sufficient to meet this need. Furthermore, a minimum wage does not even guarantee a living wage.
The lack of a defined family wage can make it difficult for a family to decide where to move or live. Lack of information makes it difficult for a family to ensure they can cover their costs in a specific area. Many individuals and families compare information from one or more areas in terms of pay to determine where to move or live in a given area.
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