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6 states where the minimum wage and cost of living offer the best bang for your buck

The highest state minimum wage in the U.S. is now $16.28 per hour, but some cities are even higher.

map of u.s. showing minimum wage by state

Map via Wikimedia Commons (multiple creators)

State minimum wages range from $7.25/hr to $17.00/hr in 2024.

Public discourse about minimum wage and living wages has been ongoing for years, with people debating whether the government should mandate a minimum hourly pay for workers. President Franklin D. Roosevelt signed the first federal minimum wage law in 1938, setting the lowest wage a worker could be paid at 25 cents per hour. Nearly a century later, the federal minimum wage is $7.25/hr, holding steady since 2009, with people lobbying to raise it to at least $15/hr for over a decade.

However, in addition to federal law, each state has its own laws, a handful of which establish a state minimum wage higher than $15, a handful of which don't have a set minimum wage at all and everything in between. Cost of living has also been a hot topic as inflation has squeezed everyone's wallets and certain cities and states have become utterly unaffordable, especially for people in low-wage jobs or who who are just starting out in their careers. So how do minimum wage and cost of living correlate state-by-state? Are there any sweet spots with a high(er) minimum wage and low(er) cost of living?

While there’s no perfect storm of super low cost of living and super high minimum wage—for instance, Washington, D.C. has the highest state minimum wage at $17/hr, but housing costs 140% more than the national average—there are some states where the ratio is far more favorable than others. According to Insider Monkey, here are the top six states where you can get the most bang for your minimum wage buck.

6. New Mexico

The Land of Enchantment offers a relatively decent living for its $12/hr minimum wage thanks to the state's below average cost of living. According to Rent Cafe, housing in New Mexico is 8% lower than the national average, monthly utilities are 9% lower, food is 4% lower, transportation is 3% lower and healthcare, goods and services are 2% lower.

According to Smart Asset, Albuquerque, New Mexico ranks as No. 10 in U.S. cities where minimum wage goes the furthest.

5. New Jersey

The Garden State's relatively higher-than-average cost of living is counteracted by relatively solid minimum wage of $14.13/hr. Most of the cost of living in New Jersey is wrapped up in housing, which is 30% higher than the national average, according to Rent Cafe, and utilities, which are 12% higher. Goods and services are 5% higher, but healthcare is 2% lower than the national average. Food and transportation are 1% and 2% higher, respectively.

4. Connecticut

With both a cost of living and minimum wage slightly higher than New Jersey, Connecticut rolls in at No. 4 with a $15/hr minimum wage. Where the Constitution State hits hardest is in utilities, which Rent Cafe places at 30% higher than the national average, and housing, which is 24% higher. Healthcare and goods and services are both 9% higher, while transportation and food are just 1% and 2% above average.

3. Missouri

The Show-Me State says, "Show me the money!" with its somewhat respectable $12/hr minimum wage, which goes pretty far with its relatively low cost of living. Housing is the biggest cost benefit Missouri offers at 18% lower than the national average. But utilities, food, healthcare, and goods and services are also all below average, with only transportation landing right at the national average.

Additionally, St. Louis clocked in at No. 5 for a minimum wage real-world value of $13.68 when adjusting for the city's lower-than-average cost of living.

2. Washington

With the highest state minimum wage in the nation (unless you count Washington, D.C.), Washington's $16.48/hr puts it in second place when accounting for cost of living. Make no mistake, Washington isn't cheap overall, with a cost of living 15% higher than the national average. Housing and transportation hit hard at 29% and 27% higher than the national average, respectively. Healthcare is pricey as well at 20% higher than average. Food costs 12% more, but utilities clock in at 7% less than the national average.

Two cities in Washington hit the top 15 for highest real minimum wage value, though, with Seattle at No. 13 and Spokane at No. 2.

map of united states with these states highlighted in green: Washington, New Mexico, Missouri, Illinois, New Jersey and Connecticut

These six states offer the best minimum wage to cost of living ratio.

Created with mapchart.net

1. Illinois

If you want the best bang for your minimum wage buck, head to the Prairie State with its $13/hr minimum wage and 8% lower than average cost of living. Housing in Illinois is 22% lower than average and utilities are 10% lower. The only expense that comes in higher than average for Illinois is transportation at 3% above average, which isn't enough to keep it out of the top spot.

However, there are some minimum wage sweet spots in certain U.S. cities that aren't reflected in these state rankings. According to Smart Asset, Denver, CO, is the city where minimum wage goes the farthest in the nation. Colorado comes in at a respectable 7th place in state minimum-wage-to-cost-of-living ratio, but Denver has its own mandatory minimum wage of $18.29/hr.

A citywide minimum wage is part of what puts Seattle at the No. 13 spot on that same list. Seattle is one of the most expensive cities in the U.S., but its $19.97 minimum wage for most workers changes the ratio in its favor.

Other cities in the top 10 include Buffalo, NY; Minneapolis, MN; Tucson, AZ; St. Paul, MN; Phoenix, AZ and Stockton, CA.

The minimum wage conversation may vary widely across the U.S., with different costs of living and different state laws on the books. But if you're looking to move someplace where your wage will go the furthest, these six states will likely be your best bet to check out first.

This article originally appeared last year.

From Your Site Articles

economy

Democracy

Millennial says boomers have it backward when they talk about wasting money on 'luxuries'

Things couldn't have been more different.

via Canva

A young couple can't handle high prices and their dad says to save money.

One of the big talking points in the great American millennials versus baby boomers debate is whether the younger generation has knee-capped itself by its lavish spending habits that have prevented them from owning homes. If millennials stopped buying $14 avocado toast and $1,000 iPhones, would they be able to save enough for a down payment on a modest home?

Freddie Smith, 36, of Orlando, Florida, recently went viral on TikTok for a video in which he challenged the boomer argument with statistics from the Bureau of Labor, Federal Reserve, and the U.S. Census Bureau. Smith believes that the older generations misunderstand millennial finances because their concept of luxury is based on 1980s economics. Smith says that for baby boomers, essentials such as rent and child care were much more affordable, but items considered luxuries (TVs, CD players, computers) were much more expensive.

View this post on Instagram
A post shared by Freddie Smith (@fmsmith319)

How is the economy different for millennials than it was for baby boomers?

"The main shift is that core essentials—housing, education, healthcare, and even food—have become more expensive," Smith said. "Housing and rent, for instance, now outpace wage growth, making homeownership feel unattainable for many. The cost of childcare has also skyrocketed, and food prices have increased.”

"As a result, I think older generations have a different perspective on luxury versus necessity,” Smith continued. “They grew up in a time when hard work typically led to financial stability, whereas today, even with hard work, many people struggle with the high costs of housing, rent and medical expenses. Basic survival used to be far more affordable, allowing people more financial room to build a stable life."

Smith’s numbers don’t lie. For a person in the '80s to own three TVs, a CD player, a cellphone, a microwave, and a computer, it would cost them 3.5 years of rent or a 20% downpayment on the average home. So, it was irresponsible for someone in that period to purchase all of what was known then as luxuries. However, these days, for a Millennial to have the average apartment and the equivalent amount of "luxuries" would only cost a little over one month's rent.

1980s, boomers, millennials A 1980s computer and television. via Canva

"But if you skip that daily $6 Starbucks drink, you’ll have enough for the downpayment in 29.22 years," Yokahana joked in the comments. "I hate that housing and transportation have become luxuries," Molly added. "Imagine spending 3x your rent on a microwave," Donutdisaster wrote.

Why are luxury goods more affordable now than they were in the '80s?

The price of manufactured goods has steadily fallen over the last few decades due to technological improvements and trade policies that have allowed the U.S. to import goods from places where labor costs are cheaper. "International, global competition lowers prices directly from lower-cost imported goods, and indirectly by forcing U.S. manufacturers to behave more competitively, with lower prices, higher quality, better service, et cetera," Sociologist Joseph Cohen of Queens University said, according to Providence Journal.

Why are housing prices so high?

Housing prices in the US have soared due to the low inventory caused by the Great Recession, mortgage rates, and zoning laws that make building more challenging. Rents have increased considerably since the pandemic due to low inventory, inflation, barriers to home ownership, and the fact that more people want to live alone than with a roommate or romantic partner.

Smith’s breakdown of the economic changes over the past two generations makes a strong case for the idea that millennial financial troubles have more to do with systemic problems than spending habits. The boomers got a bad deal regarding luxury items, and the millennials with necessities. Wouldn’t living in a world where both were affordable in the same era be great?

From Your Site Articles

millennials

Science

The longest — and probably largest — proof of our current climate catastrophe ever caught on camera.

It was the largest such event ever filmed.

Exposure Labs

All GIFs and images via Exposure Labs.

Photographer James Balog and his crew were hanging out near a glacier when their camera captured something extraordinary. They were in Greenland, gathering footage from the time-lapse they'd positioned all around the Arctic Circle for the last several years.

They were also there to shoot scenes for a documentary. And while they were hoping to capture some cool moments on camera, no one expected a huge chunk of a glacier to snap clean off and slide into the ocean right in front of their eyes.

A glacier falls into the sea.

assets.rebelmouse.io

ocean swells, sea level, erosion, going green

Massive swells created by large chunks of glacier falling away.

assets.rebelmouse.io

It was the largest such event ever filmed.

For nearly an hour and 15 minutes, Balog and his crew stood by and watched as a piece of ice the size of lower Manhattan — but with ice-equivalent buildings that were two to three times taller than that — simply melted away.

geological catastrophe, earth, glacier melt

A representation demonstrating the massive size of ice that broke off into the sea.

assets.rebelmouse.io

As far as anyone knows, this was an unprecedented geological catastrophe and they caught the entire thing on tape. It won't be the last time something like this happens either.

But once upon a time, Balog was openly skeptical about that "global warming" thing.

Balog had a reputation since the early 1980s as a conservationist and environmental photographer. And for nearly 20 years, he'd scoffed at the climate change heralds shouting, "The sky is falling! The sky is falling!"

"I didn't think that humans were capable of changing the basic physics and chemistry of this entire, huge planet. It didn't seem probable, it didn't seem possible," he explained in the 2012 documentary film "Chasing Ice."

There was too much margin of error in the computer simulations, too many other pressing problems to address about our beautiful planet. As far as he was concerned, these melodramatic doomsayers were distracting from the real issues.

That was then.

The glacier ice continues to erode away.

assets.rebelmouse.io

In fact, it wasn't until 2005 that Balog became a believer.

He was sent on a photo expedition of the Arctic by National Geographic, and that first northern trip was more than enough to see the damage for himself.

"It was about actual tangible physical evidence that was preserved in the ice cores of Greenland and Antarctica," he said in a 2012 interview with ThinkProgress. "That was really the smoking gun showing how far outside normal, natural variation the world has become. And that's when I started to really get the message that this was something consequential and serious and needed to be dealt with."

Some of that evidence may have been the fact that more Arctic landmass has melted away in the last 20 years than the previous 10,000 years.

Watch the video of the event of the glacier calving below:

This article originally appeared 10 years ago.

From Your Site Articles

Pop Culture

Mom leaves a 'heartbreaking' gift to flight passengers sitting next to her baby

"That's a mom trying so hard."

@callmebelly/TikTok

An excellent reminder to show kindness and patience.

Listening to a baby cry during a flight might be aggravating, but it’s nothing compared to the moans, groans, and eyerolls that the baby's parents must endure from other passengers when it happens. No matter what tips and tricks are used to try to soothe a little one’s temperament while 30,000 miles in the air, crying is almost inevitable. So, while having to ease their own child’s anxiety, moms and dads also must suffer being the pariah of the trip. What a nightmare.

Recently, one mom was apparently trying so hard to avoid upsetting her fellow flight members that she went above and beyond to essentially apologize ahead of time if her baby began to cry on its first flight. It was a gesture that, while thoughtful, had folks really feeling for how stressed that poor mom must be.

In a clip posted to his TikTok, one of the passengers—Elliot—explained that the mom handed out small care packages to those nearby.

“She’s already so busy and took the time to make these bags for everyone,” Elliot said, before panning the camera to reveal a Ziplock bag full of candy, along with a note that made him “want to cry.”

The note read: “It’s my first flight. I made a deal to be on my best behaviour—but I can’t make any guarantees. I might cry if I get scared or if my ears start to hurt. Here are some treats to make your flight enjoyable. Thank you for being patient with us. Have a great flight.”

@callmebelly ♬ BIRDS OF A FEATHER - Billie Eilish

Like Elliot, those who watched the video felt some ambivalence at the well intentioned act. Many felt remorse that she would feel the need to appease people in this way.

“This is so sweet but also … kind of breaks my heart that we live in a world in which parents feel the need to do that.”

“Because jerk people have shamed parents into believing that they need to apologize for their kids' absolutely normal behavior. What a gem of a mom.”

“You know that sweet mom worried about this trip so much.”

“That poor mom probably spent nights awake … nervous about that flight, thinking of ways to keep strangers happy.”

"That's a mom trying so hard."

Many rallied behind the mom, arguing that making others feel more comfortable with her child being on board was in no way her responsibility.

“No mom should be apologizing. Adults can control their emotions … babies not …. Hugging this mom from a distance.”

“Dear new parents: no you don’t have to do this. Your babies have the right to exist. We all know babies cry. We know you try your best.”

Luckily, there are just as many stories of fellow passengers being completely compassionate towards parents with small children—from simply choosing to throw on their headphones during a tantrum (instead of throwing one themselves) to going out of their way to comfort a baby (and taking the load of a parent in the process). These little acts of kindness make more of an impact than we probably realize. Perhaps if we incorporated more of this “it takes a village” mindset, flying could be a little bit more pleasant for everyone involved.

From Your Site Articles

6 states where the minimum wage and cost of living offer the best bang for your buck

The highest state minimum wage in the U.S. is now $16.28 per hour, but some cities are even higher.

6. New Mexico

5. New Jersey

4. Connecticut

3. Missouri

2. Washington

1. Illinois

Things couldn't have been more different.

How is the economy different for millennials than it was for baby boomers?

Why are luxury goods more affordable now than they were in the '80s?

Why are housing prices so high?

It was the largest such event ever filmed.

It was the largest such event ever filmed.

But once upon a time, Balog was openly skeptical about that "global warming" thing.

In fact, it wasn't until 2005 that Balog became a believer.

Watch the video of the event of the glacier calving below:

"That's a mom trying so hard."

They're funny because they're true.

Gordon shared 15 of his oh-so-real comics with us. They're all funny 'cause they're true.

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I love Gordon's comics so much because they're just about the reality of parenting — and they capture it perfectly.

Forget the Matrix. This theory is next level.