The cost of living in America’s Finest City is financially frustrating for Britni Mugoya, even though she and her husband, combined, make more than $100,000 a year.
“Even with the increases, I make more money, but now I’m spending more money,” laughed Mugoya. “So, it’s like you can’t get ahead. You just make enough to get by.”
Times are tight for a lot of people. According to a new report from the United Ways of California, 307,000 households in San Diego County — or 31% — don’t earn enough money to cover basic living expenses, which includes things like housing, child care, food, transportation and health care.
While the report shows the federal poverty line in San Diego County is $30,900 a year, the Real Cost Measure report shows the amount of money a household of two adults with two kids would need to earn is $116,036 a year. That’s higher than the median household income of $108,000. To make ends meet, the study shows families are working multiple jobs.
Nancy Sasaki, the CEO of United Way San Diego, says little will likely change when minimum wage increases by $2 to $17.50 next year.
“It might make some decisions easier, but I think families are still going to be in that situation where they’re trading off. How much food do I get versus paying the rent? How much child care am I able to pay for versus food on the table?” Sasaki said.
The study also found that 42% of households spend more than 30% of their income on housing. And when you have two kids, child care at $19,000 a year is a family’s second highest expense.
“It’s a call to look at the reality of what it costs,” Sasaki said. “It’s a call to try and do what you can. If you’re running a business, are there things you can do to help? Maybe cover all of the health insurance costs of your employees. Maybe it’s considering putting onsite day care.”
Day care and its expenses are top of mind for Mugoya and her family, who are expecting their second child. They’re also considering how much longer they’ll call San Diego home.
“It’s kind of a battle. My husband wants to stay. I don’t want to stay,” Mugoya said. “I’d like to leave and live somewhere where gas is less than $4.”
United Way says the huge difference between the federal poverty line of $30,900 versus the Real Cost Measure of $116,000 is because United Way takes into account housing, child care, transportation, health care and taxes. The poverty measure only considers food costs.
If you need help making ends meet, United Way San Diego is hosting a free seminar on Tuesday to connect you with the help and information you need. It’s from 9:30 to 11:30 a.m. at the Mission Federal Credit Union Corporate Office on Meanley Drive in Scripps Ranch.