U.s. poverty line assignment | Global Poverty

The official U.S. poverty line for a family of four was $24,300 in 2016. Imagine you are head of a four-person household (two parents, one 10-year-old child and one 2-year-old child) that earns 5% above the official poverty line. Your household income is $25,515, or $2,126.50 per month, which means your household is officially NOT poor. Adjust your income for taxation that you would have to pay (e.g. assuming your income is mostly from labor market earnings, you would pay Social Security and Medicare taxes, and potentially federal, state and local income taxes).

How would you allocate your remaining income to make ends meet? Draw up a budget that covers all of your major expenses (housing, food, childcare, transportation, clothing, utilities, healthcare and health insurance, etc.), using realistic prices for your local area.

In a brief (400-600 word) first section of a reflection paper, answer the following questions: When you created your budget were there any major expenses you will be unable to afford? What are some expenses that you chose not to provide for your family? Why did you choose to provide other expenses instead? What do you think are the consequences of not having those expenses provided?

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