In San Francisco, an income that would be considered affluent in many parts of the country doesn’t cut it for most families.
Amid the affordability crisis, the city offers free child care to families of four that earn $235,000 a year or less, and covers half the cost of child care for families making up to $325,000 a year — which is more than 3.5 times the country’s median household income, according to a New York Times story published on October 21.
The outlet looked at John Marman and Natsumi Makiyama, a couple who own a $1.3 million, 1,200-square-foot home in the city — which they bought three years ago before the Artificial Intelligence boom — and get free preschool for their 4-year-old daughter. Marman, 36, brings home about $135,000 as a therapist for the city, while Makiyama, 39, is a part-time pediatric nurse, as she wants to be home with their toddler son at times. Combined, the couple’s household income is a little under $235,000.
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However, the family is still struggling financially.
“I don’t want to say we’re rationing, but we’re definitely thinking about not using too much. Every grain of rice is eaten, and we make sure there is no food waste. I’m the designated garbage disposal for the kids’ leftovers,” Marman explained. “At the end of most months, we’re struggling to find extra cash to enjoy a day out with the kids. We’re very lucky to receive the benefit for school, but life is just still very tough.”
The family has a range of expenses: they pay $6,400 a month for their home mortgage; $2,200 for two car payments, car insurance, and gas; $300 for Cell service and Wi-Fi; and $150 each week on groceries. Each month, they also put money toward life insurance, their kids’ college accounts, and retirement.
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Marman told the outlet that to live a decent middle-class life in the northern California city, he predicts a family needs to earn close to $500,000 a year, calling it “absolutely ridiculous.”
The city’s mayor, Daniel Lurie, seemingly corroborated Marman’s prediction, admitting to The New York Times, “Yes, it is an incredibly, extraordinarily expensive city to live in and to work in and to thrive. That’s why 50 percent off at $325,000 is so essential.”
“We don’t want them leaving for the suburbs or for other states,” Lurie, 49, said of middle-class families. “We want them here in San Francisco, and that’s what it takes, so that’s what we’re doing.”
Despite the high cost of living in San Francisco, Marman told the publication, “We love this city. We believe in this city. This is home.”
This story San Francisco Offering Government Aid to Families Bringing in as Much as $325K a Year first appeared on First for Money. Follow First for Money on Yahoo so you don’t miss what’s coming next.