Rising costs can make saving and investing feel out of reach. We examine the financial steps that often come first—and what working Montanans face after paying for housing, transportation, childcare and other necessities.
Rising costs can make saving and investing feel out of reach. We examine the financial steps that often come first—and what working Montanans face after paying for housing, transportation, childcare and other necessities.
MONTANA — I (Kendall Hudson) looked at why investing can be several steps away for many workers, especially when rent, child care and keeping a car running take most of what they earn.
Investing is often talked about as the first step to building wealth. But a basic financial roadmap starts earlier: covering essential expenses, building emergency savings, paying down high-interest debt and using an employer retirement match if one is available.
Only after that does long-term investing become the next step. For some Montanans, getting there can be the hardest part.
Montana’s minimum wage is $10.85 an hour, or about $22,568 a year for full-time work before taxes. The MIT Living Wage Calculator estimated a single adult in Montana needed more than $24 an hour to cover basic needs.
I also spoke with two young people in Missoula who are already thinking about money and their future, even though they are starting from different places.
“I hope to, build my money more. And then when I have to start worrying about it, when I move out of the house and stuff, that'll have, like, something set up for my future,” said Lucy DeLuca, a Missoula resident.
“Right now, I'm just working over the summer with the Parks & Rec Summer Camp as a counselor. This is like one of my first real jobs. With my money, I try to save most of it that I get from work just because, I think that if I save it, I'll be able to spend it on more important things later on in life,” said Sophie Switalski, a Missoula resident.
The picture gets tougher as a household grows. For two working adults with two children, MIT estimated housing, transportation and child care alone totaled more than $60,708 a year.
That included $18,409 for housing, $16,477 for transportation and $25,822 for child care. Transportation also covered the cost of buying, insuring, fueling and maintaining the vehicles many Montanans need to get to work.
I also heard from Rose Bender with the Montana Budget and Policy Center, who said families in that position usually know exactly where their money is going.
“I think the reality is, when you're working paycheck to paycheck and you're trying to afford housing for your kids, childcare for your kids, trying to keep your job and your car running so you can get there, you really just often don't have the luxury of savings,” said Rose Bender, director of research for the Montana Budget & Policy Center.
The Consumer Financial Protection Bureau reported that even a small emergency fund could help keep an unexpected car repair or medical bill from turning into long-term debt.
What someone can save, and when investing makes sense, depends on their own expenses, debt and access to workplace benefits.
What stood out in Missoula was that financial awareness is not only about knowing where to invest. For many working Montanans, the biggest barrier is what is left after the bills are paid.
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PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
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Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.