food and groceries: $821.33

Medical: $751.33
Housing: $1,324.17
Transportation: $1,251.00
Monthly taxes: $882.58
Other necessities: $745.67

The table shows the monthly basic needs budget for a 2- child family with 1 working adult in Fort Worth, Texas.

Determine what hourly wage, working full-time, is required to meet the family’s basic needs. Round to the nearest hundredth.

1 answer

To determine the hourly wage required to meet a family’s basic needs, we need to first calculate the total monthly expenses and then convert that into an hourly wage based on a full-time work schedule.

Step 1: Calculate Total Monthly Expenses

Add up all the monthly expenses:

  • Food and groceries: $821.33
  • Medical: $751.33
  • Housing: $1,324.17
  • Transportation: $1,251.00
  • Monthly taxes: $882.58
  • Other necessities: $745.67

Total Monthly Expenses:

\[ \text{Total} = 821.33 + 751.33 + 1324.17 + 1251.00 + 882.58 + 745.67 \]

\[ \text{Total} = 5,776.08 \]

Step 2: Calculate Required Hourly Wage

Assuming full-time work is typically 40 hours per week, calculate the total hours worked in a month:

\[ \text{Total Hours per Month} = 40 \text{ hours/week} \times 4.33 \text{ weeks/month} \approx 173.2 \text{ hours/month} \]

To find the required hourly wage (W), use the formula:

\[ \text{Wage} = \frac{\text{Total Monthly Expenses}}{\text{Total Hours per Month}} \]

Thus,

\[ \text{Wage} = \frac{5,776.08}{173.2} \approx 33.34 \]

Conclusion

The required hourly wage to meet the family's basic needs is approximately $33.34.