As per the Studies conducted it shows that as much as 68% of the country defines themselves as middle class, but data show that, based on a strict income definition, only about 50% of the country is middle class. Part of the reason for this is income alone leaves many important factors out of the picture that can affect someone’s finances dramatically -- the local cost of living, for one, but equally important: family size.

Americans are considered middle-income if they make two-thirds to double the U.S. median household income or about $45,200 to $135,600 in 2016. That’s for families with three people, the number closest to the average U.S. household size, 2.5 people. Lower-income households are those making less than $45,200. And upper-income households have incomes greater than $135,600.

So it demonstrates that adding more people to your household increases the amount you need to earn to enjoy the same standard of living. Having a child or getting married raises the bar to middle-class entry to $43,693. For a household of 3 people, it goes higher to $50,697. And for two breadwinners and a pair of kids, the level goes even further up to $60,499.


Original source & URL: HowMuch.net https://howmuch.net/articles/income-classes-in-america

Income classes based on Family size in the United States

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As per the Studies conducted it shows that as much as 68% of the country defines themselves as middle class, but data show that, based on a strict income definition, only about 50% of the country is middle class. Part of the reason for this is income alone leaves many important factors out of the picture that can affect someone’s finances dramatically -- the local cost of living, for one, but equally important: family size.

Americans are considered middle-income if they make two-thirds to double the U.S. median household income or about $45,200 to $135,600 in 2016. That’s for families with three people, the number closest to the average U.S. household size, 2.5 people. Lower-income households are those making less than $45,200. And upper-income households have incomes greater than $135,600.

So it demonstrates that adding more people to your household increases the amount you need to earn to enjoy the same standard of living. Having a child or getting married raises the bar to middle-class entry to $43,693. For a household of 3 people, it goes higher to $50,697. And for two breadwinners and a pair of kids, the level goes even further up to $60,499.


Original source & URL: HowMuch.net https://howmuch.net/articles/income-classes-in-america

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