They would qualify for subsidized health care if they have 2 kids. (I think subsidies start at 67k for a couple… so 60k for a family would qualify.) Probably qualify for subsidy (premium assistance) as well as cost sharing silver plan. I’m guessing insurance would be about $250 with subsidies.
I’ll take a swag at their budget:
Rent on a 2 bedroom apt – kids can share a room. I have a classmate who’s renting a 2br off of Reynard in Mission hills – she and her roommates pay $900 total.
Utilities – no cable (that’s an extra), ting or other discounted no contract cell phones – $50/month for 2 phones. SDGE bill average $50/month (small apartment, gas heater, no pool, etc.) Landlord pays water.
We’re at $1250 a month.
Food – if you eat a decent amount of beans, rice, lower cost meats (chicken wings/drumsticks vs steak) – you could easily feed a family of 4 on $500/month.
Clothing. You can shop at target, thrift stores, sears… You can probably average about $150/month on clothes. That may be a high estimate – I average about that because I hate shopping.
Savings: Lets assume they put in 5% to a 401k (to get a match). $250/month
We’re at $2150/month out of a $5k budget.
Bus passes for the parents – $72/month * 2. $144 month.
Or if they have cars – lets hope they have paid for beaters – $500/year liability only insurance, $100 month gas. Lets add another $150 towards maintenance/replacement fund… round up – we’ll call it $300/month.
Still have money left to pay taxes. They’ll be in the 15% tax bucket (or lower) Lets call it an effective tax rate of 10%. $500/month
That’s $2950/month out of $5k month for a rental.
If they don’t go to starbucks, eat out, etc… they can save $2k/month towards their home. When they purchase they’ll have 2900 available towards housing.
But as owners of a condo – they have mortgage, HOA, probably larger utilities, etc.
I know folks who make it on $60k with a little extra to spare… but they don’t buy large house, don’t have new cars, don’t spend on stuff like new books (vs library), or eat out a lot.
