California may be one of the most expensive places to live in the United States, but raising a family in the Golden State could cost relatively less than living alone, according to a recent study conducted by SmartAsset, a financial technology company.
The study used the 50/30/20 budget rule and the MIT Living Wage Calculator to determine the cost of living “comfortably” in each state across the country, using the most recent data from February to analyze the cost of necessities, transportation and other miscellaneous items.
The 50/30/20 rule means setting aside 50 percent of your income for basic needs like housing, healthcare, and groceries, 30 percent on “wants” like travel expenses or shopping, and 20 percent on savings or bills.
According to SmartAsset and using the budget rule, the income needed for two working adults to raise two children in California comfortably is $276,723. This ranks fifth on the list of most expensive states.
However, California ranks third on the list of most expensive states for a single adult to live comfortably. SmartAsset says a single working adult must earn at least $114,000, or about $55 an hour, to support themselves in the Golden State.
When it comes to a basic “living wage,” MIT says a single adult in California needs to earn $27.32 per hour or $56,800 per year. Two working adults with two children must earn $138,361 per year, or $33.26 per hour each.
In Los Angeles County, the living wage for two working adults with two kids is $138,000 per year, or $33.24 per hour for each adult. For a single adult with no children, the Living Wage is $26.63 per hour, or $55,300 per year.
Massachusetts and Hawaii were the top two most expensive states to live in as a single working adult, the study found, whereas West Virginia and Arkansas were the least costly.
The data used in this study reflects hourly wages for a full-time job or 2,080 hours per year.