Study Reveals How Much Money You Need to ‘Thrive’ in Today’s Economy

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Study Reveals How Much Money You Need to 'Thrive' in Today’s Economy By: Adam Hardy Adam Hardy Lead data journalist | Joined October 2021 Adam Hardy is a lead data journalist at Money, where he frequently reports on financial barriers that affect low-income Americans. Adam’s work has also appeared in Business Insider, Forbes, Nasdaq, The Penny Hoarder, Yahoo! Finance and many other outlets. Has also written: Some Student Loan Borrowers Are Getting $2,000 'Surprise Checks' From an Old Navient Lawsuit How Buying a Home Before You Turn 30 Is a ‘Wealth Multiplier’ The 2027 Social Security COLA Is on Track to Look a Lot Like This Year’s The 7-Year Quest to Rescue My Retirement Money That Was Stuck in Korea Here's How to Track Your Tax Refund This Year See full bio Editor: Katherine Peach Katherine Peach Associate Editor | Joined January 2025 Katherine Peach is an associate editor with a focus on news and email at Money. Her writing and editing work has been featured in Investing Daily, Clever, Investor Junkie, The Palm Beach Letter, Truth & Plenty, Independence Monthly, NICHE, AmericanStyle, AntiqueWeek, Millennial Money, Money Done Right, TheStreet, Sure Dividend and many others. Has also written: Stamp Prices Won't Rise This Month, but These USPS Shipping Costs Will Debit Card Fraud Is on the Rise. Here's What I Did When It Happened to Me New Bill Aims to 'Actually' End Taxes on Social Security Inflation's Silver Lining: The Social Security COLA Estimate for 2026 Is Up Social Security Recipients Are on Track for a 2.5% Raise Next Year See full bio Published: Mar 19, 2026 2:43 p.m. EDT 4 min read Money; Getty Images Thriving — in this economy? For most families, new research finds, it requires a six-figure income. In order to fully participate in today’s economy and be “primed to thrive,” families need to earn between $96,000 and $150,000 per year, depending on the number and age of the family members living at home. For singles without children, it’s about $64,000. The findings are part of a study released Monday by the Urban Institute, an economic policy think tank. The group created a measure to gauge what it costs for families to “thrive, not just survive.” Ads by Money. We may be compensated if you click this ad.AdDebt holding you back?If you owe over $20,000, learn how Freedom Debt Relief can help you reduce or eliminate it. Select your state and act now!HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexasVisit Site “Conventional economic measures like the poverty rate or unemployment rate don’t really speak to the struggles millions of families are facing,” Mary Cunningham, senior vice president of research at Urban Institute, said during a webinar about the study on Tuesday. To account for this, the study considered a holistic group of factors in its analysis, such as expenses for food, health care, child care, clothing and saving for retirement, as well as income from employment, benefits, cash transfers, tax credits and more. The measure was designed to reflect a realistic picture of earnings and expenses for a typical family. Whether Americans meet this new measure of financial stability is a coin toss.

The Urban Institute says 49% of Americans earn less than the amount needed for economic security based on their family's composition. By contrast, the latest data from the Census Bureau shows that the typical household earns about $84,000 — far below Urban’s lowest threshold — and only 10.6% meet the official definition of poverty. Parents are in survival mode The picture is especially bleak for parents. Urban’s findings suggest most families with children are simply treading water. It takes $144,700 for a two-parent family with children to be considered financially stable, but median earnings for those households are $133,400. Overall, 56% of parents don’t meet Urban’s threshold. Single parents are faring much worse. A single parent with one child needs an income of $84,100 to achieve stability, but typical earnings are just $56,700. The gap widens the more children the single parent has. Almost 90% of single parents earn less than Urban’s threshold. The study adds to a swelling body of research about the financial difficulties of raising children in the U.S. In the latest American Family Survey, an annual study run by Brigham Young University, more than 7 in 10 Americans now say that raising kids is unaffordable, a major jump from 58% the prior year. Of course, affordability is a universal concern right now, not just among parents. “Americans are worried about paying their bills,” Cunningham said. “At best, many are just getting by when they really want to be getting ahead.” Ads by Money. We may be compensated if you click this ad.AdDon't overpay for Car Insurance. Compare rates today!Save up to $793 a yearGet Started More from Money: How to Save Money on Gas Right Now More Americans Than Ever Are Relying on Personal Loans. Here's What You Need to Know How Buying a Home Before You Turn 30 Is a ‘Wealth Multiplier’ SHOWHIDEAds by Money. We may be compensated if you click this ad.AdIf you owe over $20,000 or more, Freedom Debt Relief can help you get back on your feet!Get Started