To cover basic needs and live in Prescott, AZ, a single adult with no children needs to earn $21.35 per hour. This figure represents the hourly income required to meet essential expenses in the area without relying on public or private assistance.
Understanding the Living Wage in Prescott, AZ
The concept of a "living wage" goes beyond the minimum wage, aiming to provide an income that allows individuals or families to afford basic necessities such as housing, food, transportation, childcare, and healthcare. For Prescott Valley-Prescott, AZ, the required hourly wage varies significantly depending on the household composition.
Hourly Wage Requirements
The following table outlines the hourly wages necessary for different household types to meet their basic living expenses, alongside the poverty wage and current minimum wage for comparison.
| Household Type | Children | Living Wage (Hourly) | Poverty Wage (Hourly) | Minimum Wage (Hourly) |
|---|---|---|---|---|
| 1 Adult | 0 | $21.35 | $7.24 | $14.35 |
| 2 Adults (1 Working) | 2 | $42.49 | $15.00 | $14.35 |
Annual Income Equivalents
To better understand these figures in terms of yearly earnings, here's what the living wage translates to for a full-time worker (assuming 40 hours per week, 52 weeks per year):
- For a single adult with no children:
- $21.35/hour 40 hours/week 52 weeks/year = $44,408 per year
- For a household with two adults (one working) and two children:
- $42.49/hour 40 hours/week 52 weeks/year = $88,379.20 per year
What These Figures Mean
The distinction between the living wage, poverty wage, and minimum wage is crucial for understanding the financial realities of living in Prescott, AZ:
- Living Wage: This is the income considered necessary to cover basic expenses and achieve a modest, yet adequate, standard of living. It reflects the true cost of living in the area.
- Poverty Wage: This income level signifies a household's earning capacity below the federal poverty threshold, indicating a significant struggle to meet basic needs.
- Minimum Wage: This is the lowest hourly wage an employer can legally pay. In Prescott, the minimum wage is considerably lower than the living wage for both single adults and families, highlighting a potential gap between legally mandated pay and the actual cost of living. This means that earning only the minimum wage may not be sufficient to cover all essential expenses without additional support.
Factors Influencing Cost of Living
While the living wage provides a baseline, individual expenses can vary based on personal choices and circumstances. Key factors that influence the overall cost of living include:
- Housing: Rent or mortgage costs are often the largest single expense.
- Transportation: Commuting distance, vehicle ownership, and fuel costs play a significant role.
- Personal Spending: Discretionary spending, entertainment, and personal care items also contribute to the overall budget.
