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This Map Reveals The True Value Of $100 In Each State

Your purchasing power can swing by 30% from state to state.

Image by Tax Foundation.

Map represents the value of 100 dollars.

As the cost of living in large cities continues to rise, more and more people are realizing that the value of a dollar in the United States is a very relative concept. For decades, cost of living indices have sought to address and benchmark the inconsistencies in what money will buy, but they are often so specific as to prevent a holistic picture or the ability to "browse" the data based on geographic location.

The Tax Foundation addressed many of these shortcomings using the most recent (2015) Bureau of Economic Analysis data to provide a familiar map of the United States overlaid with the relative value of what $100 is "worth" in each state. Granted, going state-by-state still introduces a fair amount of "smoothing" into the process — $100 will go farther in Los Angeles than in Fresno, for instance — but it does provide insight into where the value lies.

The map may not subvert one's intuitive assumptions, but it nonetheless quantities and presents the cost of living by geography in a brilliantly simple way. For instance, if you're looking for a beach lifestyle but don't want to pay California prices, try Florida, which is about as close to "average" — in terms of purchasing power, anyway — as any state in the Union. If you happen to find yourself in a "Brewster's Millions"-type situation, head to Hawaii, D.C., or New York. You'll burn through your money in no time.

income, money, economics, national average

The Relative Value of $100 in a state.

Image by Tax Foundation.

If you're quite fond of your cash and would prefer to keep it, get to Mississippi, which boasts a 16.1% premium on your cash from the national average.

The Tax Foundation notes that if you're using this map for a practical purpose, bear in mind that incomes also tend to rise in similar fashion, so one could safely assume that wages in these states are roughly inverse to the purchasing power $100 represents.

This article originally appeared on 08.17.17

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money

Pop Culture

How much money do you need to make to be considered 'middle class' in the U.S.?

The income thresholds vary widely, but it still feels like these figures just can't be right.

Photo by Pixabay (via Pexels)

For many, the American middle class doesn't feel like it used to.

The U.S. middle class has long been a symbol of American prosperity, a promise that freedom, opportunity and hard work will provide your family a reasonably comfortable life, even if you don't strike it rich. In the past, an average middle class family could presumably afford to buy a modest home and take the family on fun-but-not-extravagant vacations. Not living luxuriously, but easily affording the basics, building up some savings and enjoying a little wiggle room in the budget for occasional extras. A nice, secure life.

But the reality of the middle class has shifted over the decades. Not only is the middle class shrinking, according to government statistics analyzed by Pew Research, but many people who fall into the middle class income-wise aren't feeling any sense of financial security. Approximately half of Americans are classified as middle class, down from 61 percent in 1971, and those who fall within middle class income thresholds can often feel like they're barely making ends meet.

When a TikTok user asked middle class families to share how much money they have in savings, the responses were eye-opening. Many middle class Americans say they have nothing in savings, and not for lack of trying. There's always some expense that comes up. Especially for those on the lower end of the spectrum of middle-class incomes, it can feel like living one emergency away from financial doom.

So how much money do you need to actually make to be considered middle class in the U.S.?

To compare middle class household income ranges by state, SmartAsset analyzed U.S. Census Bureau data using Pew Research's definition of middle class, which defines the middle class salary range as two-thirds to double the median U.S. salary. New Jersey came in at the highest range at $64,224 to $192,692 and Mississippi came in the lowest at $35,142 to $105,438.

Here are the rankings in order:

There are even bigger variations between cities. The highest middle class income range in SmartAsset's list of 345 cities is Sunnyvale, California (near San Jose) at $113,176 to $339,562 and the lowest range is Detroit, Michigan at $24,300 to $72,906.

Cost of living varies a lot, as we all know, so it's understandable that middle class income in the Silicon Valley wouldn't be the same as middle class income in the Midwest.

But the differences from place to place are arguably easier to digest than the differences within the ranges themselves. There's an ocean of difference between a household income of $50,000 and a household income of $150,000, no matter where you live. For most families I know, the low end of the income range in my state would be a huge stretch to even live on while the upper end would mean complete financial security. How can the entire range be considered middle class?

Interestingly, the past decade or so has seen middle class income ranges rise dramatically. According to GoBankingRates' analysis of U.S. Census Bureau data, the household income required to be considered middle class increased by 41.67% overall from 2012 to 2022, with Oregon, Washington and Colorado each seeing an increase of over 50% during that time frame. People are making more money, but people also feel like their dollar isn't going as far.

Is that true, though? According to Investopedia, Americans overall are making more money than ever and are wealthier than every by nearly ever measure, even accounting for inflation. But at the same time, more Americans feel poorer. There are several possible reasons for that. One is the surge in housing prices increasing homeowners' net worth without adding actual, spendable dollars to their bank accounts. Another, as Investopedia points out, is that broad averages mask greater disparities between people's wealth—in other words, the rich are getting richer at higher rates than the average American. People also may still feel shaken by the pandemic's economic fallout. That sense of insecurity from an unprecedented global event may still linger in people's minds, making them feel financially unstable even if that's not their actual reality on paper.

And then there's the lens of partisan politics that can color people's perceptions. Half the country tends to see the economy negatively when one party is in power and the other half sees it negatively when the other party is in power. We also shouldn't discount the role that aspirational social media plays, with feeds pushing plush vacations and perfectly curated luxury homes, altering people's expectations of what life should look like.

Of course, some middle class folks really are financially struggling, and again, those lower income thresholds do feel incredibly low for most households. Perhaps it's time to shift the definition of "middle class" to be more reflective of how those incomes are experienced by real families rather than simply a percentage calculation that feels way off from reality.

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Education

Real estate broker breaks down why middle class millennials and Gen Z can't afford housing

"It's fine...we just have to stop getting our fancy coffees and we can afford it."

Photo credit: Canva

Real estate broker explains why Millennials can't buy houses

There's a housing crisis in America. It's not that there aren't houses available. Thousands of houses and apartments sit empty across the country, but the price for housing has reached levels that seem unsustainable for the middle class and those classified as working poor. Some might argue that middle class is now the working poor, though their yearly salary says they should be able to fair just fine.

Unfortunately, what used to be considered a decent salary for a middle class family to live comfortably is now barely enough to scrape by given the cost of housing. But some people from the boomer generation still struggle to understand why millennials and Gen Z can't afford housing.

Freddie Smith, a real estate broker, took to social media to explain why younger generations are struggling to purchase a home when their parents didn't. The real estate finance lesson was prompted when a baby boomer pointed out, "Don't forget we had 13% interest rates in the 80s."

A 13% interest rate seems like insanity upon first glance, but after Smith breaks it down, it doesn't look so bad. "I wish we had 13% interest rates if we had your home prices," the broker says before breaking things down.

Smith quickly starts speaking in numbers, revealing that in 1980 even with their yearly salary being only $22K with the 13% interest rate, their monthly payment only equaled to 26% of their monthly income. If millennials had the same circumstances, their median yearly salary would be $80k, their median price of a home $170K, and with a 13% interest rate the monthly payment would be $1,790–only 26% of their monthly income.

But that's not the reality that Millennials and Gen Z live in. While the median salary is $80k, the median price of a home is $419K, and while the interest rate in 2024 is 7%, with the housing price so high it would make the monthly payment 42% of their monthly income.

Smith wraps up the video saying, "And here's the kicker. Someone making $80K in most cases can't even qualify for this."

@fmsmith319 1980 vs 2024 home prices and interest rates
♬ original sound - Freddie Smith

That certainly put things in perspective for people. The video was flooded with comments from exhausted and frustrated millennials.

"Oh and the wives got to stay home and care for the kids now we pay another $1600 a month for daycare for us both to work," one person laments.

"Imagine if we had 140K homes with 13% rates. The gaslighting from them is WILD. I’d take 14% rates if the average home was only 140K," another says.

"It’s fine.. we just have to stop getting our fancy coffees and we can afford it," someone writes.

"We’re facing a 5K payment with 10% down on the average home. Same house cost 3K a month in rent. So we’re renting indefinitely at the moment," a commenter shares.

But this isn't just an issue in America. There were people outside of the U.S. sharing their astronomical cost of an average family home.

"Same here in Oslo, Norway. By dad bought his house for $22,500 in 1972. He’s selling it now for $1.75 million. And of course he says just this. 'You just have to spend less and work more.' Lol," someone shares.

"It’s worse in Australia. Average salary $80k average house price $1m," another writes.

While Smith doesn't offer a solution, his breakdown may help older generations understand why their children and grandchildren aren't buying homes. One can only hope housing prices go down or wages significantly increase so the middle class can afford a little more than their basic needs on top of being able to buy a home.

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Democracy

15 million Americans have medical debt crushing their credit scores but that's about to end

This is great news for the millions of us with outstanding medical bills.

Photo by Mikhail Nilov/Pexels

Millions of American families are trying to pay off medical bills that put them into debt.

A new proposed rule from the Biden administration could spell some relief for people with outstanding medical bills.

According to data collected by the Consumer Financial Protection Bureau (CFPB), 15 million Americans are carrying $49 billion in medical debt that shows up on their credit report, potentially having a negative impact on their credit score. A new rule banning medical debt from credit reports would change that.

In the U.S., people's ability to get approved for a car loan or a mortgage to purchase a house depends heavily on their credit score or FICO score. People with a strong credit history, who make payments on time and don't carry too much debt, will usually have a good credit score and an easier time being approved for loans with the best interest rates. A low credit score makes getting a loan more difficult or more expensive.

Unfortunately, circumstances out of people's control, like medical care that puts them thousands of dollars in debt, can negatively impact their credit score.

"Medical debt makes it more difficult for millions of Americans to be approved for a car loan, a home loan or small business loan, all of which in turn makes it more difficult to just get by, much less get ahead. And that is simply not fair," Vice President Kamala Harris told reporters via teleconference.

— (@)

CFPB Director Rohit Chopra also shared that having medical debt is not a fair indicator of someone's true credit habits.

"Medical debt on a consumer credit report is a very different type of debt than a mortgage, an auto loan, or a credit card," Chopra explained. "Sometimes, as is the case with a visit to the emergency room, the debt is taken on unexpectedly and in a time of crisis. Medical bills are also frequently subject to coding errors, charity care mistakes, or complexities with insurance. A decade ago, the CFPB found that medical debts were overly penalizing consumer credit scores, and we have consistently found that medical billing data on a credit report is less predictive of future repayment than other debts."

Chopra also called out the predatory practices that have influenced credit reporting systems when it comes to medical debt, providing an unfair disadvantage to consumers.

"Some have seized on medical debts as a major moneymaking enterprise," he said. "These entities purchase medical debt, sometimes for pennies on the dollar, and they can cash out big by getting consumers to pay up on those debts. And one of the easiest ways they can do so is by threatening to park that medical debt on the credit report, where it might impede a consumer’s ability to get approved for a loan. In this way, the credit reporting system more closely resembles a weapon for debt collectors rather than a tool for lenders to assess someone’s likelihood to repay a loan."

Chopra also pointed out that the three big credit reporting agencies——Equifax, Experian, and TransUnion—voluntarily removed some medical debt from credit reports, only certain kinds. CFPB research found that although the number of Americans with medical debts on their credit report had decreased, the numbers were still substantial and disproportionately impact low-income Americans. Additionally, the average medical debt on credit reports had increased from $2,000 to over $3,100.

Vice President Harris said that this change would result in millions of Americans seeing a 20-point increase in their credit score on average, allowing for 22,000 more approved mortgages to buy a home. She also called on states, cities and hospitals to join the Biden administration in forgiving medical debt.

According to ABC News, the rule has been in the works since September and could go into effect early next year.

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Education

Finance expert explains how much money Jeff Bezos has using a giant sack of rice

That rice could feed a lot of families.

via HumphreyTalks/TikTok

What a billion dollars looks like in grains of rice.

The high percentage of wealth concentrated in a tiny fraction of hands in America is a big concern for many people. The top 1 percent of wealthiest Americans owned 32.3% of the nation’s total wealth at the end of 2021, while the share of wealth held by the bottom 90% was just 30.2%.

It can be hard to comprehend how much money billionaires have when discussing tycoons such as Warren Buffett, Elon Musk, or Jeff Bezos. So, finance educator Humphrey Yang created a TikTok video to give people a good idea of how much money Jeff Bezos has.

In his first video, he provided some perspective on how large a billion is by juxtaposing one grain of rice ($100,000) with 10,000 grains of rice ($1 billion). The bonkers part of the experiment is that he counted out the 10,000 grains by hand, which took him over 12 hours.

@humphreytalks
This took me hours don’t let it flop #billion #money #personalfinance #rice #xyzbca

To take things a step further and show how much money Amazon founder Jeff Bezos has, he went to Target and bought a digital food scale, then hit up Costco to purchase some large restaurant-size bags of rice. After measuring out $122 billion, it reached 58 pounds of rice.

@humphreytalks
Rice. Part 2: Jeff Bezos net worth. #rice #billion #billions #amazon #jeffbezos #money #personalfinance #xyzcba

One must note that this video was created in February of 2022, and since then, Bezos' wealth has grown to over $150 billion.

The video was eye-opening for a lot of Yang’s followers. "This visualization really puts everything into perspective. Great job!" M_o_n_t_a_n_a wrote. "How do people watch this and not go blind with rage at the inequity of this situation?" Sarah Robinson added. "Imagine owning just one grain of rice. Can’t relate," LeeExplored added.

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money

Pop Culture

People share 'weird' ways they make extra money that are surprisingly easy and lucrative

Some side hustles make an extra $400 to $500 a pop.

Canva

We could all use a little extra cash.

Living is expensive, as we are all very, very aware. And for many of us, one job's wages aren't going to cut it, forcing us to get creative when it comes to making a little extra money.

In some ways, necessity really is the mother of invention. Nearly every niche talent, interest and/or skill set can be turned into a profitable business. Have a knack for finding cool, unique things at Goodwill? Sell them online. Willing to do simple chores that others can't be bothered to complete? Offer those services. The world is your capitalist oyster.

In other ways, society is a serpent eating its own tail. When people are all but forced to squeeze a penny out of every moment just to make ends meet or dare to try to make life better for themselves, then suddenly the only value registered is monetary value. That causes potential soul-nourishing hobbies to be drained of their magic by constantly trying to turn them into a "brand," never pursuing certain hobbies in the first place for fear that they won't make money, chasing get-rich-quick schemes out of desperation, following less-than-virtuous business practices…the list goes on.

But let's focus on the former for today.

Recently, u/bigdope-smallgirl asked folks on Reddit to share the 'weirdest' ways they make money. In a world where it seemed like we've seen every side hustle in existence, the answers were quite unexpected, not to mention lucrative, with some gigs raking in an extra $400 to $500+ a month. Perhaps most surprising of all—only one person seemed to mention selling pictures of their feet.

Here's what they had to say:

"I had a plumbing backup and needed someone with a snake to clear the line. I looked on Craigslist, and everyone was charging $99 for the snaking. This one guy advertised for $69. I called him, he came, and he had my line clear in 20 minutes. We got to talking. He and his family had just come in from Ohio a couple of weeks before because their 8-year-old daughter needed medical treatment that was only available in Tampa. Before he left Ohio, he had bought a used electrical plumbing snake for $400. Upon arrival, he was instantly busy with snake jobs because his price was the lowest on all of Craigslist. According to him, he was making about $400 per day, and he was working it seven days a week. Good money in it once the initial investment is made, but of course, it is not a glamorous job."

via GIPHY

—u/georgepana

"I host trivia. It’s a few nights a week for two and a half hours a night. It’s $50 each night plus the different venues hook you up with deals on food and drinks. Like, one place you get a free meal, which you can use for these giant pizzas that are normally $25. Or at another place, I get free drinks. It’s pretty chill, and I make about $500 a month. It helps." —u/hothouseflowers

"Once a month, on a Friday night, I host a parents' night out and babysit overnight. I still have a swing set, a tree swing, and such so kids come to my home. I charge around $50 a child and I serve dinner and dessert, we play outside until dusk, come in and get cleaned up/put pjs on, and then watch a movie. Depending on weather and age of kids, we may use our blowup movie screen and projector and watch the movie outside along with popcorn and juice boxes. Afterwards, it’s brushing teeth and getting settled down in sleeping bags. We set up camp in the family room, and kids fall asleep quickly. I’m up by 8 a.m. making breakfast to feed the little people, and parents pick up around 9:15. I usually watch 8 to 10 kids, and it’s an easy $500. Kids LOVE the night, and I have more demand than space available."

—u/furryfreeloader

"I bake fruitcakes from scratch, using pecans instead of walnuts, and cream sherry in lieu of harsher liquors. I use 1/2 pound loaf pans, so no one is stuck with a lot of leftovers. Baking begins in September, through October, so the cakes have time to soak up the sherry. Business is pretty good, I can do a few hundred dollars or more easily, and still have folks clamoring for more."

via GIPHY

u/Cuyler_32087

"I do clinical studies. I was on an antibody one where the total pay is like $6k. I got $300-700 a month for the first few months for a blood draw and 1 infusion. And once I complete it next month I get a $1,500 “bonus” for completing the whole thing."

—u/mystictofuoctopi

"I have a flea market booth. The most lucrative part about it is freeze dried candy I buy from a local business. I buy in bulk and have 100% markup and still sell a crapload of candy! It helps that the local mall has pretty much the same stuff for three times the price. People want to try it but don't want to pay those prices, so they get excited when they see mine and buy three for the price of one mall candy. It's silly, but I'm happy with it."

—u/greenonioncrusader

"I watch for class action lawsuits and join when I qualify. I’ve made a few hundred the past couple of years, but my main motivation is how tickled my husband gets when a random check arrives. Am always looking for ways to impress him, LOL."

—u/vavamama

"I 'teach English' online, basically just chat with people. One of them is a kid where we do a 50/50 reading and watching Pokémon or Godzilla. So I get paid minimum wage to watch Pokémon and old Godzilla movies."

—u/the_polar_bear__

"I crochet and sell dolls."

Aren't these adorable?

preview.redd.it

—u/blackcatspat

"I had an Etsy shop reselling vintage and antique cast iron cookware that I would find in rusty condition and restore to be collected or used again. Just recently shut the shop down due to time constraints, but it was a great little side gig at the time, and I enjoyed it."

—u/tannergd1

"I DJ weddings and provide light shows for bands coming through town. It started off just as a hobby, and it spread through word of mouth. People pay so much money for DJs and bands for weddings that it makes my charge of $100 an hour look really cheap."

—u/hottytoddypotty

"I watch local Facebook groups and find odd jobs there quite a bit. People are always looking for random help. Last weekend, I made $25 by going to a lady's house and clipping her cat's toenails!"

—u/prinessbeca

"One thing I did was a mock jury I found on Craigslist. Went to a law firm where they catered food, drinks, and snacks. We got to listen to a case and deliberate like an actual jury would, and the whole thing was recorded. Got paid $200 plus travel fees for about three and a half hours worth of work."

—u/caughtyoulookinn

"I worked as a victim for a military training drill. It was $100 per day, paid in cash. If you did all three days of this exercise, you got an extra $25. They are coming back to my area in two months."

—u/wagonhitchiker

"I met a dude once who sold feeder roaches to Petco, PetSmart, etc. He was making, like, $200k off his garage."

via GIPHY

—u/the_dumb_engineer

"Back in college, I put together furniture — 80% of the time for older folks who ordered flat pack furniture and couldn’t put it together themselves. I enjoyed the puzzle of putting together IKEA furniture, and I usually had an interesting conversation or two with the older generation."

—u/selkie_queen

"I sharpen knives and tools to supplement my income. Startup costs are pretty low, and if you go to a farmers market in a wealthier part of town, you can usually get a decent amount of business. Kitchen and pocket knives are usually the standard, but if you can sharpen tools like lawn mower blades, shears, chisels, etc., you can get a decent amount of consistent return business. Anywhere from a couple hundred to about $1k a month depending on how much I am working at it."

—u/os_jytz

"Not that weird, but I model for art classes. I have a full-time job, but I usually do classes a month and get paid in cash, which is nice."

—u/7hecavalry

"I sell plant cuttings and seedlings! Spring time I just sell my extra peppers and tomatoes, and then have some well-loved houseplants that need a haircut every so often. I just root the cuttings in water and eventually pot and sell. It's not a ton of cash or anything, but it's a nice way for my hobby to pay for itself over time. Also, I've been growing pomegranates from seed because where I live, they are an uncommon houseplant. The local garden center sold small trees for $129+! I had no problem growing the little guys for a few months and selling for $20; whereas, the seed packs were $5 for a bunch."

via GIPHY

—u/induceddaftfan

And last but not least…

"Not a job or a real way to make money but, in Washington State, every time at the grocery store I would snag the tossed losing lottery tickets in the lotto garbage cans. Scan them into the 360 app and get points, 1700 points was equal to $25 on gift cards. I made about $825 in one year just by doing that, $125 of that $825 was from winning thrown away lottery tickets. People just tossing winners in the garbage can. Once I found a completely unused scratched ticket, also got a few free tickets in bonus rounds that people just tossed."

—u/runninginpollution

From Your Site Articles

creative finances

Pop Culture

Realtor breaks down how outrageously house prices have risen against income in just four years

Is buying a home still part of the American Dream?

Photo by Tierra Mallorca on Unsplash, Freddie Smith/TikTok

Realtor Freddie Smith shows the math of why millennials can't afford a house.

Does this conversation sound familiar?

Millennial: "Housing costs are ridiculous. And now mortgage rates are double what they were a few years ago. How am I supposed to afford to buy a house?"

Boomer: "You know what the interest rate was on my first house? Over 16%. I'd have loved to have a 7% interest mortgage!"

Millennial: "But you could raise a family on a single middle-class income when you were my age. That's just not possible now."

Boomer: "Well, maybe if you stopped buying avocado toast and Starbucks, you could afford a house."

Millennial: [blank stare]

Generational battles over economics aren't new, but some eras provide more fodder for such exchanges than others. Right now, it's the cost of housing that has younger people feeling stuck while older folks (or people who were lucky enough to land a house several years ago) are sitting pretty on the equity they've gained since the pandemic started.

Those of us who already own a house and aren't thinking of selling any time soon may not be fully aware of how drastically things have changed for those in the homebuying market. One realtor on TikTok shared a breakdown of the numbers, and it is eye-opening.

Watch this explainer from Freddie Smith:

@fmsmith319
Housing cost from 1995 vs 2019 vs 2023

Umm, yeah. It would take a truckload of avocado toast to even come close to making up for that increase. And these numbers are assuming you could even afford an $84,000 down payment. First-time homebuyers can often qualify for a 3% down loan, which makes it easier to get into the house but increases the monthly payment.

People in the comments commiserated, and many people asked what they were supposed to do in light of this reality. Some suggested buying land and putting a cheap mini-home on it until they had enough saved up to build a house. Others said to wait it out because the current market isn't sustainable and we may see a housing crash. (Though, as one commenter pointed out, "[In] 2019 we were told everything would crash but instead everything went up in record numbers.")

Some blamed the current administration, completely ignoring the global pandemic of the past three years that resulted in economic upheaval and ongoing fallout everywhere. The immediate housing market has always been somewhat unpredictable, and it's a crapshoot as to whether or not it's the best time to buy.

But when you can't even come close to affording it, it's a moot question anyway. Surely, something's got to give, but the question is what, when and how.

Smith has many, many videos showing the math behind the housing market. Follow him on TikTok for more.

From Your Site Articles

finance

finance

This Map Reveals The True Value Of $100 In Each State

Your purchasing power can swing by 30% from state to state.

How much money do you need to make to be considered 'middle class' in the U.S.?

The income thresholds vary widely, but it still feels like these figures just can't be right.

Real estate broker breaks down why middle class millennials and Gen Z can't afford housing

"It's fine...we just have to stop getting our fancy coffees and we can afford it."

15 million Americans have medical debt crushing their credit scores but that's about to end

This is great news for the millions of us with outstanding medical bills.

Finance expert explains how much money Jeff Bezos has using a giant sack of rice

That rice could feed a lot of families.

People share 'weird' ways they make extra money that are surprisingly easy and lucrative

Some side hustles make an extra $400 to $500 a pop.

Realtor breaks down how outrageously house prices have risen against income in just four years

Is buying a home still part of the American Dream?

The one sign that someone is highly intelligent, according to literary genius Leo Tolstoy

Gen Zer asks Gen X how they got around without GPS and the answers are perfectly accurate

See what researchers found when they tested a bottle of Fiji Water against a glass of tap water.

14 of the funniest photos from the 2023 Comedy Wildlife Photography Awards

Non-Americans share weird things about the U.S. that Americans don't realize are weird