The Living Wage: Are We Getting Closer?
In the first sub-article, the data showed that self-sufficiency was not self-sufficient. Individuals and families fell short of a balanced budget, and critical expenses such as healthcare were missing. How does a Living Wage stack up? Let’s take a look.
MIT defines living wage as “employment earnings that a full-time worker requires to cover or support the costs of their family’s basic needs where they live.” The TWC and MIT definitions share a similar intent, and both aim to identify the wage at which a household can meet basic needs without public assistance. The difference lies in their cost modeling. MIT’s living wage averages $21.35 per hour across our ten counties, while TWC’s self-sufficiency wage averages $17.55 per hour. There is a gap of $3.80 per hour that reflects different assumptions about what basic needs actually cost.
Exploring the Living Wage?
When exploring Living Wages, Literacy Coalition continued to use the expense categories and cost estimates from the self-sufficiency article. The living wage budget expands the question beyond basic needs to ask what economic living actually requires. Living wage includes all the basic needs expenses plus the cost of healthcare and savings.
Health insurance and savings are not extras. A single unexpected medical bill without insurance can erase months of careful budgeting. A household with no savings has no buffer, and one crisis becomes a catastrophe. A wage that cannot cover your health or your future is not a living wage. It is a slower version of survival.
The MIT Living Wage Calculator assumes both adults in a household earn the full living wage simultaneously. This is a scenario that, while theoretically possible, does not reflect the reality of most two-income families in central Texas. For the family budget analysis, Literacy Coalition used the U.S. Census Bureau median household income by county, which more accurately reflects what two working adults actually bring home together across Central Texas.
Data Exploration: Build the Foundation
Before we delve into the data abyss again, it is important first to build the foundation so we’re working with the same terms and numbers. In the main article, the average living wage for a single adult in Central Texas is $21.35. Furthermore, using the MIT Living Wage calculator for an individual household and the U.S. Census Bureau to estimate family living wages across the Central Texas counties:
| County | Individual Living Wage Yearly | Individual Living Wage Hourly | Combined Living Yearly Household Income | Combined Living Hourly Household Income | Hours Worked per Year |
|---|---|---|---|---|---|
| Bastrop | $47,050 | $22.62 | $86,861 | $41.76 | 2,080 |
| Blanco | $41,413 | $19.91 | $93,101 | $44.76 | 2,080 |
| Burnet | $42,952 | $20.65 | $79,123 | $38.04 | 2,080 |
| Caldwell | $43,534 | $20.93 | $70,325 | $33.81 | 2,080 |
| Fayette | $39,915 | $19.19 | $76,190 | $36.63 | 2,080 |
| Hays | $46,987 | $22.59 | $89,294 | $42.93 | 2,080 |
| Lee | $42,474 | $20.42 | $76,960 | $37.00 | 2,080 |
| Llano | $39,291 | $18.89 | $68,266 | $32.82 | 2,080 |
| Travis | $49,275 | $23.69 | $100,942 | $48.53 | 2,080 |
| Williamson | $51,106 | $24.57 | $113,797 | $54.71 | 2,080 |
| Total | $443,997 | $213.46 | $854,859 | $411.00 | |
| 10-County Average | $44,400 | $21.35 | $85,486 | $41.10 |
The family living wage reflects the county’s average family profile rather than a fixed family type. Additionally, the model structure may vary depending on the household structure. As a result, the calculation changes based on household structure. For example, a household with two working parents and two children will have a different cost of basic needs than a single-parent household with children.
In the budget shown above, the Household Living Wage is calculated for two working adults with two children: one school-aged and the other above infant age but not school-age.
Data Exploration: Time to Budget
Grab your gear, and let’s dive once more into the data abyss. So, how does the living wage reflect in a real-world budget? To answer this, let’s take a look.
First, the budget categories are based on basic needs, living wage expectations, and real-world expenses. They include essential things a person needs to live and function with stability, such as food, rent, transportation, utilities, childcare, household expenses, personal expenses, healthcare, and a modest savings account.
Individual Living Wage Budget by County
Family Living Wage Budget by County
Budget Notes
- Rounded to the nearest whole number.
- Budgets reflect a single household model for comparison purposes.
- Taxes: Individual Table is based on single filer with no dependents; Family Table is based on married filing jointly with two dependents.
- Health Insurance: The health insurance deduction is based on an employer-sponsored health plan at the following rates: Individual is $350 deductible per month; Family is $500 deductible per month.
- Rent: Individual Table is based on a one-bedroom apartment; Family Table is based on a two-bedroom apartment. The rent amount is based on listings researched on Apartments.com in July 2026.
- Food: Based on a moderate diet with more fresh produce, fruit, dairy, eggs, and meat, while still keeping some processed or budget foods in the mix. Moderate is not “all healthy all the time,” and it usually does not mean organic or premium-only shopping. Cost estimates based on: Average Grocery Cost per Month: The 2026 Breakdown.
- Car Payment: Individual Table is estimated with a compact car at $350 per month; Family Table is estimated with a SUV Compact at $540 per month. Car expenses were added due to the limited public transportation in Central Texas and the expectation that a vehicle is needed in this region.
- Car Maintenance: Based on three oil changes per year at $55 each.
- Gas: Averaged price at $3.50 per gallon. The Individual Table is calculated with a 10-gallon car and 6 fill-ups per month; the Family Table is calculated with a 15-gallon car and 6 fill-ups per month.
- Childcare: Childcare estimates are based on the family having 2 children. One child requires non-infant all-day childcare, with estimated rates of $1,008, $750, or $588 per month. The second child is calculated at $366, $196, and $140 per month for after-school costs. The amounts vary by county. The monthly calculation does include any childcare subsidy from Workforce Solutions Capital and Rural Capital Area. There is no guarantee of childcare assistance, and participation depends on eligibility, provider participation, and available space.
- Household Supplies: This budget line item groups items needed for clean clothes and home cleanliness. This line item is $97 per month for individuals and $224 per month for families. Included in this line are expenses for: Laundry Supplies ($25 I, $45 F), paper goods ($25 I, $45 F), cleaning supplies ($32 I, $74 F), and linens ($15 I, $60 F). This budget assumes there is a washer and dryer in the unit and does not factor in laundromat or dry cleaning expenses.
- Personal Items: This line is $67 per month for individuals and $283 per month for families. This line includes expenses for personal cleanliness (toothpaste, deodorant, body wash, shampoo, etc.) and clothes, including shoes.
- Health Visits/Medication: The Individual budget is based on $35 per month for a doctor’s visit or medication subscription. The family budget is based on $90 per month for a family of four for doctor’s visit or medication subscription.
- Savings: The savings budget line is calculated at 5% of yearly salary.
Living Wages Don’t Always Close the Budget Gap
At the MIT living wage, a single adult comes closer to covering basic needs than at the self-sufficiency wage, but closer is not enough. The annual shortfalls range from ($553) in Williamson County to ($3,750) in Llano County, where lower wages and higher costs create the widest gap. Travis County, despite having the highest individual living wage in the region, still shows a ($1,360) annual shortfall. Even the highest-paying county in Central Texas cannot get a single adult to break even at the living wage.
For families, the picture is similar. With only two counties that support Living Wages, Blanco and Williamson, the remaining eight still struggle to balance the budget, even with two working adults. The reason is not wages alone. It is childcare, and in Travis, Hays, Bastrop, Burnet, Caldwell, and Williamson counties, it is what drives up living wage expenses.
What does an annual shortfall look like in real life? It means adults and families are forced to choose. A game of financial Russian roulette ensues. Do they pay the electric bill or buy groceries? Fill the prescription or make the car payment? Put something in savings or keep the lights on? Many families and adults are still living in survival mode on living wages.
Closing the Gap
The numbers show that at the living wage, most Central Texas adults and families are still surviving rather than living. While closer, it is still not enough. Closing that gap requires more than a benchmark. City and state leaders who align funding, policy, and opportunity with wages need to truly understand the cost of living in Central Texas. Also, employers need to invest in workforce development rather than waiting for a fully trained workforce to appear.
Closing the living wage gap requires robust, accessible literacy and job training programs that equip adults with the skills to earn a wage that supports themselves and their families. The living wage is a step in the right direction, but the adults and families in our ten counties deserve leaders bold enough to take the next one.
