Question

Create a budget for a family of four (two parents and two children) living in Fort Worth, TX. What components of the budget are included with children that would not be necessary if a family did not have any children? What hourly wage do the parents need to earn to provide all the basic needs for their family if a job requires 37.5 hours per week?

Answer 1

Here is a budget for a family of four living in Fort Worth, TX. It includes the necessary components for a family with children:

1. Housing: $1,200 (average monthly rent for a 3-bedroom house/apartment in Fort Worth)
2. Utilities (electricity, water, gas): $250
3. Groceries: $600
4. Transportation (car payments, insurance, gas): $400
5. Healthcare (including insurance): $500
6. Childcare/Education: $600 (assuming both children are in school and require after-school care)
7. Clothing: $200
8. Entertainment/Recreation: $300 (including activities for the children)
9. Miscellaneous expenses: $300

Total monthly expenses: $4,350

Expenses specific to having children include childcare/education expenses, as well as additional costs for clothing, entertainment, and recreation compared to a family without children.

To determine the hourly wage the parents need to earn to cover these expenses, we'll assume a 37.5-hour workweek and a 4-week month (150 hours per month). Adding additional expenses such as taxes and savings is highly recommended but not included here:

Hourly wage needed = Total monthly expenses / Hours worked per month
Hourly wage needed = $4,350 / 150 hours
Hourly wage needed = $29 per hour

So the parents would need to earn at least $29 per hour, working 37.5 hours per week, to cover all the basic needs for their family.