Expert Says Any Family Making Less Than This Amount Each Year ‘Should Be Considered Poor’ & Research Agrees
Krakenimages.com / ShutterstockWhat it means to be "poor" in the modern day doesn't always match what official numbers say. With everyday essentials becoming more pricey than ever, families who seem fine on paper may secretly be having a hard time staying afloat.
Now, research is starting to reflect this reality, claiming that families who make under a certain income should be considered "poor," and the number is much higher than you might expect.
A new study found that American families need an annual income of around $145,000 to be financially secure.
The Urban Institute's updated financial report reveals some surprising truths, ones that might be hard to hear. It estimated the true cost of economic security (TCES) for families with children in the United States to be approximately $145,000 annually.
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This means that about half of Americans don't earn enough each year to cover all of their basic needs, with 49% making less than that. U.S. Census data from 2024 puts the median household income for married couples at $128,700. Even households making over six figures aren't always able to keep up with the rising costs of necessities.
The analysis determined the TCES by factoring in the costs of housing, adequate food, clothing, health care, child care, transportation, and more. Of course, costs can vary widely depending on each situation, so certain families may require an even higher income to survive.
Many Americans are unable to get ahead with their finances, leaving them stuck on a "hamster wheel."
While this number doesn't necessarily signal poverty, it demonstrates that even people with stable, high-paying jobs may still be struggling. Economist Gregory Acs, vice president of Urban's tax and income supports division and a co-author of the report, told CBS News, "That is consistent with the experiences that we're hearing from people — that they might not be destitute, but some of them are skipping bills — and some of them are making their bills on a regular basis, but they're not getting ahead."
According to the analysis, getting above the $145,000 annual income threshold could help families escape this continuous loop and finally become financially secure. "If you have more people feeling that their efforts are rewarded, that they have a stronger sense of autonomy, they are able to devote more time to their own communities, to their own families," Acs adds. "Parents can invest more in their kids — time, energy, money."
Americans don't have high hopes for the economy improving in the future.
Gallup conducted a survey in early 2026 to find out exactly how Americans view the current economic conditions and where they see things going in the near future. Nearly 2 in 5 (39%) say the state of the economy is "poor," while only 25% believe it's "good."
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When asked if they believed conditions would eventually improve, a majority 62% claimed they see things getting worse. They cited things like high cost of living (29%), lack of money (12%), and health care costs (7%) as being the biggest financial problems they're facing at the moment, without any relief in sight.
For many, being "poor" isn't defined by a simple number. Traditional poverty measures don't acknowledge the subtle hardships that millions of Americans are facing, and earning a significant amount doesn't guarantee financial stability.
Kayla Asbach is a writer currently working on her bachelor's degree at the University of Central Florida. She covers relationships, psychology, self-help, pop culture, and human interest topics.
