I was recently inspired to come up with a list of normal household expenses, including the types of insurance a "financially responsible"person might consider. This isn't exactly a scientific (some data came from as far back as 2012- I pulled the most recent numbers I could find) or all-inclusive list, but I did research yearly income and costs for an average American family of 4. Here's the results...
Item Amount Balance Average Income $75,845 $75,845 Health Insurance ($5,430) $70,415 Out-of-Pocket Medical ($4,565) $65,850 Dental Insurance ($1,800) $64,050 Out-of-Pocket Dental ($873) $63,177 Vision ($429) $62,748 Short-Term Disability (one employee) ($50) $62,698 Long-Term Disability (one employee) ($106) $62,592 Term-Life ($240) $62,352 long-term care ($1,000) $61,352 Home Owners Insurance ($823) $60,529 Out-of-Pocket Prescription ($700) $59,829 Average Mortgage Yearly ($12,732) $47,097 Average Electric Bill ($1,287) $45,810 Average food cost- family of 4 ($15,028) $30,782 Federal taxes ($5,484) $25,298 State Tax ($1,972) $23,326 Water ($335) $22,991 Flood Insurance ($650) $22,341 Natural Gas ($1,140) $21,201 Mortage Insurance ($1,000) $20,201 Property Tax ($1,180) $19,021 Cost of Maintaining a Home ($1,520) $17,501 Total Funds Left for Discretional Spending $17,501 "Optional" Spending Average yearly daycare costs ($16,236) $1,265 Transportation (no vehicle owned) ($5,520) ($4,255) Cost of Owning a Sedan ($9,122) …
Most American families own 2 cars, but I guess this one is going to have to walk, because they're already in debt. They're naked (no clothing allowance) and also can't read this because they have no internet, computer, phones, TVs, cable, nor any retirement or emergency savings. Ooh, and they don't leave the house or have any entertainment because they're broke.
(Short-term/ Long-term disability based on a healthy man in his 30's, Term-life based on a 30 year term w/ a healthy man in his 30's, Long-term care based on a couple. Also note, that if one adult stays home, there would be no child care expense, but in the event of that spouse becoming unable to perform duties, there is no insurance to cover the costs involved in outsourcing his/her work at home.)
