Poverty Line (Chapter 10)

The estimated yearly cost of living for a family of four, with two adults, a 7 year old, and a toddler living in Shoreview, Minnesota is...

 An average family in the United States spend 9-14% a year on food
Food: 3,095.82 a year 257.98 a month
http://lifehacker.com/5887545/how-do-i-figure-out-my-monthly-food-budget

I found a 2 bedroom apartment in Shoreview, MN called Midland Terrace for $875 a month.
Housing: $10,500 a year
http://www.forrent.com/apartment-community-profile/1004971.php

Average family daycare for a toddler in Minnesota costs
Daycare: $641.36 a month $160.34 a week $32.07 a day $11,544.48 a year
(They do have Federal Tax Credit Option. Tax Free accounts, Using tax credits, sliding fee tuition, and scholarships to help with daycare.)
http://www.childcareawaremn.org/families/paying-for-child-care/child-care-costs-in-minnesota

Transportation: $208.33 a month, and $2000 per year for gas. I will add in an extra $500 a year in case anything goes wrong.
http://www.huffeningtonpost.com/2012/03/04/gas-prices-infographic_n_1316919.html

Medical Care: Low Cost Health Insurance Plan would come to around $150 per month, which would be $1800 a year.

Clothing: I would think the adults would spend at the very least $100 each year. I believe the other children could do on $100 aswell, which is very little, but will have to work with the budget.
Clothing : $400 a year; $33.33 a month

Entertainment/Savings: $20 a month, for maybe a movie, or saving up for something special. This comes to $240 each year.

TOTAL COSTS: $3,095.82 (food) + $10,500 (housing)+ $11,544.48 (Daycare)+$2500 (transportation)+$1800 (Medical Care) + $400 (Clothing) +$240 (Entertainment) = $30,080.3 per year

The family makes $22,113 a year and the total cost of living is $30,080.3 a year. To live in Shoreview, Minnesota this family would need $7,967.3 more. There are options for the family to save money. I found daycare to be the most expensive. However, there are many ways to bring your daycare down, like the ones I listed above. I'm sure this family could potentially recieve a waiver for there toddlers daycare, which would put them under budget. They could also find someone maybe in their apartment building who would be willing to help. They could also start going to food shelves to cut on food costs. They will also have to shop at places like the salvation army, or goodwill to get the materials they need.

***I Included everything that I thought was absolutely essential to everyday life, but there are still many important things that would not fit into the families budget. We did not save a budget for furniture or bedding. The family is going to have to either use there clothing money, entertainment money, or dumpster dive for furniture for their home. Another thing that I thought was important, but did not include was money for school supplies. However, I believe there are school programs where you can recieve these items if you cannot afford them. There is also no money for shampoo, conditioner, toothpaste, or any cleaning or hygeine costs. This will also have to be taken out of entertainment, food, or clothing costs.

Having to live right on the poverty line would be anything but pleasant. The family would be crowded and stressed. If something went wrong there would be no saving to contribute towards it. It would be horrible feeling not being able to give your kids everything they want and only having $20 a month to spend on your children's entertainment. I feel like I spend $20 a day on myself. Every meal, every outing, every trip to work, and every month would be down to the wire on cash.  The two children would have to share a small apartment room. They'll have to do without toys, video games, and nice clothes that the other classmates might have. There would be no annual vacations, no birthdays, and no Christmas presents. If the parents have difficulty meeting its basic subsistence needs it will directly translate into access opportunities. If the family has a low income that will directly impact the children’s education. The government may pay for primary education, but if the children need tutoring they would not be able to afford that. Also, the parents will not be able to contribute towards a college education, which means unless the children receive a large scholarship they will most likely not be able to attend. This then will affect the job they will have. Without a proper education it is very hard to obtain a high salary paying job. Therefore, they will not have many options in the career world. If one of the parents or children gets sick and medical insurance won't pay for it, there will be nothing the family can do. The poverty cycle will most likely continue on from the parents to children, and they will have to keep living life day to day.