Poverty in America

The poverty line

The government has established guidelines for how much a person or family should make to live out of poverty

For single people in 2006, it was $10,488

For a family of four (including two children), it was $20,444

Can you live at the poverty line?

At the time this study was done, the poverty line was $18,810

What exactly does it mean to live at the poverty line?

Housing

A family of four will spend an average of $5,274 a year for basic shelter

That’s $439.50 per month

$18,810- 5,274 $13,536

Utilities

Want to keep your family warm? The average expense for utilities is $2,350 a year.

$13,536- 2,350$11,186

That doesn’t include cable tv, internet or cell phones!

Transportation If you plan on driving to work or going

to the grocery store, you’ll need to spend at least $4,852 to maintain a car and keep it full of gas.

This doesn’t include money for a car payment – you’ll drive an old car!

$11,186- 4,852$ 6,334

Food

Even if you get food stamps, the average family of four needs at least $4,815 a year for food.

$6,334-4,815$1,519

Health Care Even if an employer contributed part

of the costs of health care (which is unlikely for low wage workers), the average family of four will be $793 per year. A large medical problem would be devastating.

$1,519- 793$ 726

Child Care Even with child care subsidies,

working-class families an spend an average of $2,030 a year on child care for two children. In a large city, the cost could exceed $13,000 a year.

$ 726- 2,030-$1,304

Out of money! Your family is out of money and you

haven’t even bought: Toiletries and cleaning supplies Clothing and shoes Holiday and birthday gifts Education expenses Furnishings for your house Entertainment and vacations WHAT WILL YOU DO?

The Working Poor The income we’ve just seen represents the

working poor – people who have jobs but don’t earn enough to provide for their basic needs

Some receive food stamps (help from the government to help poor people purchase the food they need)

Some families run out before the end of the month

What would you do to feed your family?

How would you make ends meet?

During our class discussion, write down some ways to make ends meet.

How do people come to live in poverty?

They might have lost a job or have a low-paying job

They might have little education or skills to get a job which pays more than minimum wage (currently $5.85 per hour)

Even working 40 hours per week (full time), this doesn’t allow people to live above the poverty line

How do people come to live in poverty? (continued)

Single parent families where the other parent is paying little or no child support

Higher incomes

Do you think it would be easier for a family of 4 to survive on $25,000 per year? $30,000? Explain.

Extra credit challenge

During our poverty unit over the next two weeks, we will be collecting non-perishable (can goods, boxed pastas, etc) food items to donate to a local food bank

You will receive two bonus points on your next test for each item you bring in (maximum 10 points)

This is extra credit - it is NOT mandatory! Last day to donate items is Fri., Oct 24th