Average incomes

[flabbergastedfinances]

Found out that the average family income is around £30,000 a year and I can not believe it. I don't know a single family on anywhere near this low, lowest is possibly 70k mark between two teachers but majority have two earners pulling in 40+ each or one higher earner on 80/90k+

How on earth is 30,000 even possible in light of minimum wage and benefits/tax credits etc? What is even more shocking is that I used the where do you fit in calculator and we are apparently in top 98% of families in the uk. No chance, absolutely no chance.

We might have a high ish mortgage (still only £1000 so not outrageous) and have slipped into bad spending habits (Uber's, eating lunch out every day, new clothes now and then) but we are hardly excessive. We can't afford to run two cars, can't afford foreign holidays, can't afford the posher shops like Boden or northface new and yet this chart tells me we have it better than nearly everyone else in the country?! What am I missing?!

We have a child in childcare a few days a week, so that and mortgage are biggest expenses but combined that's only £1500 and I see everyone else buying £300 coats, spending 1000s on holidays, children in private schools and I am utterly stumped.

How can the average family income be £30,000? Which families are surviving on that? None I know that's for sure and I just refuse to believe that's an actual reality

Anyone remember that Harry Enfield sketch with the character spouting "I've got considerably more money than you" ?

That’s wrong.

The 50th centile for a family of 2 parents and 2 children is a bit over 3k after tax and after income tax.
30k pre tax would put you amongst some of the poorest households.

You're also assuming that households are made up of two adults OP, there are many single adult households with and without children in those calculations.

It's 'median household' you're talking about, not 'average family'.

We're on 27k and have more money than a lot around here, normal nice neighbourhood. You live in a bubble.

I'm sorry, I'm not trying to be goady or gloat or a simpleton. I'm just honestly stunned that the average for a whole family can be that amount.

I know you tend to have friends similar to yourself but I have a varied bunch that's the point I was making and none of them are on that. I have friends who are a builder and receptionist on joint 70, another couple where one is a nurse and the other is an office manager and that's still over 70 when combined. That's my confusion, even 'low level' jobs would bring in much more so how can the average be set so low?

Thank you @JoJoSM2 that's very interesting x

OP, you and your family are middle class, with a middle class income and lifestyle. Your friends and acquaintances have middle class incomes, too.

Millions of people do work in minimum wage jobs, therefore their income is a fraction of yours, and their lives are much less comfortable than yours.

I believe the phrase is : ‘check your privilege’.

So..you are in the top 98% of the population, well everyone is apart from 2% who are not..
Never bought a clothing worth £300 and never will although extremely lucky to earn well above average income.

I don't know what my friends earn, never thought of asking them as it's a bit rude

Median household income is about 30k - remember that huge numbers of "households" are single income.

Wow.

I agree you live in a bubble. I meet a lot of people who would dream of a 30k household income.

National minimum wage in the UK brings in less than 16k a year, working full-time.

Wow. Unbelievable shortsighted and naive of you to use the kind of language that you did in your OP. I hope it is because you are genuinely naive and not just hugely insensitive and ignorant. Do some googling.

What an absurd post! So ignorant to the millions in the UK on nothing near this

I dint know what makes up a household - but many households are one income or a couple of state pensions.
I live in an incredibly expensive bit of the southeast but u still know plenty of people with that as their 'household income'

I genuinely haven't the faintest what any of my friends earn. It's only on MN that subjects such as "how much are your mortgage repayments?" as well as "what's your weight and clothing size?" are considered reasonable topics of conversation. I've always been a one income family, so huge variations depending on contract, in London or locally, part or full time over the last 30 years.

For example the average number of legs per person is less than two.

That's because lots of people have no or 1 leg. Like lots earn less than 30k per family unit.

Are you actually serious? This is so unbelievable insensitive. I'm assuming you're in the London bubble surrounded by finance and marketing types and yummy mummys with their husband who works in the city but it's not like that everywhere love.

I kind of get you OP, I think I live in a bubble too. We're in the top 5% or something and that's with me as SAHM. The thing is I guess we just don't really know what's going on in people's lives, I don't think I know anyone, especially a two parent family, that have such a low household income but I guess I wouldn't really know if they did.

Now you know this, how will it change you?

And NMW over 40 hours a week is about £17,076 I think - much less for under 25s.

I feel like I phrased it all wrong and I apologise. I'm confused by means and medians and what is actually average etc. I think a lot of the lower end salaries would hopefully get a top up from benefits or something and it seems like rents can be much cheaper than £1000 which is good so it's possibly more a relative thing than anything else?

How on earth is 30,000 even possible in light of minimum wage and benefits/tax credits etc? What is even more shocking is that I used the where do you fit in calculator and we are apparently in top 98% of families in the uk. No chance, absolutely no chance.

£25,000 income, wages and tax credits/child benefit. That's higher hourly rate than nmw and 40 hours a week. Single parent, so one income.

You can refuse to believe it all you like, that doesn't stop it happening.

Thank you @Peanutbutteryogurt I didn't realise I was in a bubble I just don't understand

What planet do you live on OP? I would love to go there where it seems everyone is on 70k a year.