What Can You Afford on Minimum Wage?

Based on a Living Wage study by the Massachusetts Institute of Technology (MIT), the average American spends the following amount on expenses each year:

• Food: $3,237
• Housing: $7,821
• Transportation: $4,059
• Clothing and misc. supplies: $2,551

Total Average Annual Expenses: $17,368

Even at the average national minimum wage — let alone the federal minimum wage annual salary of $13,920 — you would still have to cut a chunk out of your budget to make ends meet. Even worse, this assumes that medical coverage is included along with minimum wage. If it's not, the situation becomes even more of a struggle.

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