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Brandon Thibodeaux for msnbc.com
Samuel and Megan Moss stand in their kitchen with their 10-month-old daughter, Mary Margaret, at their apartment in Plano, Texas.
With careful budgeting, Sam and Megan Moss are able to get by on their combined salaries of about $50,000 a year.
But the couple is weighed down by around $110,000 in student loan debt that Sam, now 28, accrued while they were students at University of Mississippi.
Megan, 25, says they don’t want their 10-month-old daughter, Mary Margaret, to be burdened by such high debt when she goes to college. That’s one reason the Plano, Texas, couple is unsure whether they will have more children.
“I would love for her to have siblings … but I don’t see us being able to afford it,” Megan said.
Megan works full-time in sales for a hotel company, while Sam is in the mortgage industry.
What's it like to live on around $50,000 a year?
It is a challenge. It definitely takes planning and budgeting to make everything work.
How has the weak economy affected your finances?
We have been affected simply through the rising cost of living. Everything is more expensive, from gas to groceries to utilities.
Do you worry about money?
I'm not worried about the everyday, for example not being able to put food on the table or buy diapers or gas, but I worry about emergencies. I worry that our cars, which are both older models, might give out on us and we don't have the extra cash flow to fix (them). I worry about something happening to one of us that makes us unable to work, or in some way negatively affects our job situation.
What are your biggest expenses?
Our biggest expenses are rent, student loan payments and daycare. We pay about $550 a month on Sam’s student loan payments. Our daycare bill every month is close to $800; it is a mortgage payment for some people.
We could probably find a cheaper apartment to live in, but it is worth it to us to pay a little bit more and not have to worry about the neighborhood we live in, or commute too far to work. We both drive less than three miles to work every day.
What do you splurge on?
We splurge on our cable, because it is our entertainment. And occasionally we will go to a movie or out with friends if my parents are available and willing to watch the baby for us. We also splurge on stuff for the baby.
Brandon Thibodeaux for msnbc.com
The Moss family
What kind of debt do you have, and do you find it hard to pay off your loans or other debts?
Sam has student loan debt, quite a bit of it. It averages out to about a $500+ monthly payment.
I am lucky enough to have a grandfather who is generous enough to pay for my education (as well as my three brothers and my cousins). It was (and still is) the best gift I have ever been given, other than my daughter. I don't know if I will ever be able to fully thank him or show him enough gratitude for what he has done for me.
We also have (around $2500 of) credit card debt that we got into while I was on maternity leave for three months. We pay minimum monthly payments for those every month, and plan to use our tax refund to pay those down completely.
Are you able to save money for the future?
Right now, unfortunately, we are not able to. We have plans though to put the money that has been going to credit card payments into a savings account when we pay those off.
What are you most proud of in terms of your financial situation?
We own both of our cars. We have steady jobs, with growth potential in the near future.
Are there any financial mistakes you think you've made?
I’d say our biggest mistake is not saving the money we had to spare before the baby was born. We didn’t plan as well as we would have liked, financially, before her birth. Hindsight is always 20/20, though.
Over the next few years, do you expect things to get better or worse for you financially?
I hope things will get better for us. We both have the potential for growth in our careers, and we are lucky enough to work in companies that offer those opportunities.
Right now, I would say we are on the right path for success. However, Sam’s loans are on an adjustable rate, and when rates go back up it could really make things more difficult.
Click here to see previous stories in our "We are the median" series. We’re also sharing our thoughts — and yours — on Twitter (hashtag #median), Facebook and Google Plus. We invite you to comment on our posts — but keep it civil and on topic, please!
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How in the world does someone have that much in student loan debt unless he has a master's they aren't telling us about. My master's alone cost $40,000 and I only owed $17,000 after 5 years of undergrad. Even with the credit card use over the years I don't have even close to 6 figures of debt from 7 years of school.
I agree that the baby should have waited. They spend $9600 a year on daycare, so why doesn't one of them stay home? If they each make $25,000 and you subtract for gas, lunches and work clothes, after daycare, how much are they making? Not much at all. And I can't believe they each earn the same amount. She probably makes more and he won't man up and be a stay at home dad.
This sounds like poor planning and whining on their part. Don't have children until you can AFFORD them! I don't understand why everyone whines about their student loan repayments. I paid all of mine off by working at menial jobs. I worked a while full time and then went back to school, etc, etc. They can do the same. It seems like most students expect their parents to incur their student debt. My kids are paying their own, just like I did, and they don't whine about it. They know it's part of the process of bettering oneself and maturing. Have the money BEFORE you enroll or work some and then return to school. You don't have to have these enormous student loans that students party on, buy food, and other items. They rack up enormous bills by living off student loans. They want everything the easy way. LIfe isn't easy.
How long ago did you go to school? I think you'll find that the tuition has gone up significantly since then. With the rising cost of tuition it is not really realistic to save up all of the money before going to school. Also, most students do not take out student loans to live off of. There are restrictions on what you can take out in loans based on your tuition costs.
It is so easy to find fault and so many do. I posted an article on Cnn after the housing bubble broke, I had a stroke, our family was in financial turmoil over medical bills and expenses etc. I told how I was selling all of my prized possessions (family violins) since I was a violinist and had some good ones to sell thank God. You should have seen the vile hatred and filth thrown around. Some comments were so stupid they were laughable. People accused us of living too high, having too many kids (3) being lazy because we didn't save for emergencies, and an assortment of other nonsense. I had over 170,000 views on the article and hundreds of negative, and positive comments. We fought on, but it made me realize that there are lots of scum bags out there who just sit around and make it their mission to say dumb things to make themselves feel good, doesn't matter what the circumstances are either.
We made it and are still struggling, but doing better. One more bad accident or medical problem and we will be in bankruptcy though, despite having two full time jobs, thousands in savings, and insurance. Our 8 year old broke his arm, and now we have another 1400 in medical bills to cover, it never ends. The health care crisis will bury the middle class if we don't follow in the footsteps of other nations and make it public and taxpayer supported, by the wealthy!!
Those that are too young to be sick, too cool to be in debt, too good to have problems, too rich to worry, or grew up in a time that afforded them a good education without going into debt should thank their lucky stars and shut the hell up. They haven't got a clue what middle class families in their child rearing years are facing today
Glad you are doing sooooo well!! It is so easy to find fault and so many do. I posted an article on Cnn after the housing bubble broke, I had a stroke, our family was in financial turmoil over medical bills and expenses etc. I told how I was selling all of my prized possessions (family violins) since I was a violinist and had some good ones to sell thank God. You should have seen the vile hatred and filth thrown around. Some comments were so stupid they were laughable. People accused us of living too high, having too many kids (3) being lazy because we didn't save for emergencies, and an assortment of other nonsense. I had over 170,000 views on the article and hundreds of negative, and positive comments. We fought on, but it made me realize that there are lots of scum bags out there who just sit around and make it their mission to say dumb things to make themselves feel good, doesn't matter what the circumstances are either.
We made it and are still struggling, but doing better. One more bad accident or medical problem and we will be in bankruptcy though, despite having two full time jobs, thousands in savings, and insurance. Our 8 year old broke his arm, and now we have another 1400 in medical bills to cover, it never ends. The health care crisis will bury the middle class if we don't follow in the footsteps of other nations and make it public and taxpayer supported, by the wealthy!!
Those that are too young to be sick, too cool to be in debt, too good to have problems, too rich to worry, or grew up in a time that afforded them a good education without going into debt should thank their lucky stars and shut the hell up. They haven't got a clue what middle class families in their child rearing years are facing today
I've read this entire series, and all I've got to say is there is a boatload of people out there who seem to have nothing better to do than beat other people over the head with their perceived moral superiority. You'd think they'd find that exhausting, but I guess some people thrive on it. Sure, there have been people who legitimately question the expenses of some of these people or the choices they've made, and others who offer helpful suggestions, but the common theme in comments is "I am SO much smarter then they are!" Well...I've got a news flash for you people. More then likely, you're just luckier...so far. Made a great career choice? Good for you! Until your industry tanks, or the CEO makes some bad choices and the company folds. Waited until you could "afford" to have kids? Good for you! Until one of them gets sick. I have a co-worker who's two week old infant would up in pedi intensive care for a week with a mystery infection and fever, and our insurance company is telling him his share of the bill is more then he grosses in a year. You drive an old, paid for car? Good for you! Until the transmission goes on the way to work one morning, and your employer fires you for an "unexcused absence"...it happens where I work. Or you're older, you've saved for retirement, your mortgage is paid, and everything is coming up roses, until that day when you get the cancer diagnosis. The vast majority of us out here are working our butts off to get by, hoping we've made the right choices in careers, housing, insurance, savings, etc., but life has a way of kicking you in the butt when you least expect it, and I don't have an ounce of sympathy to spare on anyone who goes around constantly denigrating everyone around him. Your turn in the barrel will come, and when it does, I hope you're prepared to tough it out alone.
Very good points. It is so easy to find fault and so many do. I posted an article on Cnn after the housing bubble broke, I had a stroke, our family was in financial turmoil over medical bills and expenses etc. I told how I was selling all of my prized possessions (family violins) since I was a violinist and had some good ones to sell thank God. You should have seen the vile hatred and filth thrown around. Some comments were so stupid they were laughable. People accused us of living too high, having too many kids (3) being lazy because we didn't save for emergencies, and an assortment of other nonsense. I had over 170,000 views on the article and hundreds of negative, and positive comments. We fought on, but it made me realize that there are lots of scum bags out there who just sit around and make it their mission to say dumb things to make themselves feel good, doesn't matter what the circumstances are either.
We made it and are still struggling, but doing better. One more bad accident or medical problem and we will be in bankruptcy though, despite having two full time jobs, thousands in savings, and insurance. Our 8 year old broke his arm, and now we have another 1400 in medical bills to cover, it never ends. The health care crisis will bury the middle class if we don't follow in the footsteps of other nations and make it public and taxpayer supported, by the wealthy!!
Those that are too young to be sick, too cool to be in debt, too good to have problems, too rich to worry, or grew up in a time that afforded them a good education without going into debt should thank their lucky stars and shut the hell up. They haven't got a clue what middle class families in their child rearing years are facing today.
Well if they both drive less than 3 miles to work it would seem that having two cars doesn't make much sense with the cost of insurance alone. I'd sell one of the cars and bank the money. Then I'd use the insurance savings to pay down the student loan debt.
They chose to incur the student debt. I managed a baccalaureate and a law degree with only $7,500 in borrowing but I worked constantly. The idea of having that kind of student loan debt never entered my mind but back then in California it would have been difficult to spend that much money on a couple of college educations.
Get the government out of subsidizing student loans, giving schools the idea they can raise their tuition every year. Having over 100000 in student loan debt makes 50000 a year impossible to live on.
We have loans too, some credit cards, one new car and one old (paid off old one) but having a 500/month student loan payment and 800/month on childcare would cripple us. Our children all had daycare, spaced out of course because our children are several years apart, but that amount for childcare is excessive and they should get a sitter.
As others do, we have to budget tightly on 50k to make it and save maybe 100/ month for emergencies, but it can be done. Look for ways to make some side income too, doing something you are good at. Put together a family cookbook and market it on ebay. One year we made over 800$ just selling that tiny recipe book on ebay. Diversify and branch out to get ahead and don't depend on the income from your day job to do it all for you.
Many do not understand student loan debt at all or how it happens. If you do not have enough money for college, which most do not, then you will have to enter the financial aid system. This means you are limited by their rules in how many hours you can work. That means in almost every case student loans will be necessary. You will be in debt for a large portion of you life. My advise is: If you want to be educated make sure you at least take enough technical, or business related courses to increase your life long earning potential. If you are interested in something like literature, double major in computer science, or business for example. Try to limit the amount of loans you take out as much as possible and avoid forbearance, if possible, after you graduate. Finally: learn the student loan system and laws! You cannot get rid of the debt by not paying it. It never goes away and you have zero consumer protection or legal recourse. You will be an indentured servant until the debt is paid.
I do not exactly get the point of these "they make 50K/yr and this is how they live" stories... I mean it all depends on where the person lives, the kind of debt they have, and the family dynamic. If you try to live on Manhattan with 50K/yr, you are going to be worse off than trying to live in the hills of Arkansas. If you foolishly got one of those mortgages where your payment has tripled, you are also going to be worse off. If you had to get a loan or credit card debt to get through one of life's tribulations, you are going to be worse off. If you have any kids, once again, worse off than being single. I think these stories kind of fall under the "duh" catagory
Before any of you complain. How about getting by on $24, 000 a year and still paying off you student loan. Occupation, teacher. That is why I find it funny when I hear politician and others(republicans) who are alright taking away benefits from us. Oh by the way, I work at a private Christian school. We do not have any benefits. So not only is our salary low, student loans, but let us add no health insurance. So when I hear people complain about teacher salaries, and how much of our benefits should get cut I laught in disgust.
That IS a low salary, but the government has nothing to do with how much you are paid. The private school dictates your pay. Public education teachers salaries are what is getting cut. My niece is a principal in a grade school. She makes $150,000 a year! Way to much!!!!!!! Sorry niece but that really is way to much for a public paid job.
It is very easy to accrue student loans of 110,000 in four years of college. Mine are that high and half of my school was paid for through scholarships which I worked really hard for. It is also not just as easy as if you get a job you can pay for school while you are there. I worked for all four years and I needed that money for living expenses. The typical college student does not earn very much money. The cost of an education has gone up and it is not as easy as just going to community college for the first two years for everyone. There are issues with credits transferring and classes counting towards a major. Not all schools are created equally and yes for some people that is a valid option but for others it isn't.
Two mistakes that they are making right now that could really help them.
First, change your deductables so that you are not giving the government an interest free loan. You should have to pay them a bit at the end of the year. If you are getting $2500 back, enough to pay off the credit card, that is over $200 per month!!
Second, apply the extra money to pay your student loans down, not put it in a savings account. The interest rate on a savings account these days, if you are lucky is about 1.5%. Paying down the student loan, which is at 3-6%, will net you a lot more money as you are cutting down further interest payments on that extra principle that you are paying down. If you put that $200 per month on the Student loans you would save yourself over $$20,000 in interest payments over the life of the student loan.
Also, if you have multiple loans with different organizations, figure out which are the highest interest rate loans and apply all the extra money to the loans.
This could save them a LOT of money but it seems that they are too stupid to try and figure out what to do to help themselves. They just want to whine and hope that Obama bails them out.
$110k loans for a $50k per year job working at a hotel is nuts!
I guess Newt could do better right?
Actually, the really need to get an emergency fund going. Without it they will forever be in debt. They CAN NOT keep relying on credit cards to bail them out of emergencies.
$800 a month on childcare works out to $5 an hour/40 hrs per week. Don't know they can cut there. It's so easy to criticize other's decisions. Wish them well and hope they can improve their work situations instead of just slamming them. It's not like he's trying to get out of paying his debt.
Your college education is a financial burden you regret? Get real! That is one thing that you have that will never be taken from you. You should be grateful instead of regretful.
That lilttle piece of sheepskin can open doors for you that a lot of other people WISH could be open to them.
$800 day care? Something is just not right... they need to get off their high-horse and just have another child :D Maybe the grandma will finally move in, as that might have been her only wish.
Sorry, I think many americans get by on less than that, student loans and all.
Just read another article where a couple lives on $20,000 a year. Also a family of three. Do I feel for the above family? No. Do I feel for the other family? Absolutely! They aren't out charging up credit cards or have cell phones or unnecessary expenses.
You do what you have to do to survive. The above couple won't ever be happy with the amount of money they make & will always complain!!
I support my wife and 3 kids on 80k a year. I feel that my student debt was worth it at 50k. The state paid off about 20k of it because I am a SPED teacher. However, I think that I would have stopped if my school was costing in the 100k range. I don't understand why someone would get so deep in that kind of debt, unless the job you were training for was a doctor, lawyer, or Wall Street Bandit. I am telling my kids that they need to choose a college they can afford and stay out of debt. The money you get is not free money. I will try to help them as much as I can (I have a college fund set up for each kid). However, I know it will not pay the whole college bill. My kids already know that they will have to get loans to finance college. I would suggest to the couple featured in the story to stop at one kid!!
Instead of piling on people, like some other posters seem fit to do, stories like this just make me thankful I have no student debt, a good job, and a good career outlook. Some have more, some have less, but at the end of the day, my head is above water, so I'm thankful.
Smart people. They know AHEAD OF TIME that they can not afford another child and make good decisions.
So tired of people reading these and thinking people are complaining. They're simply sharing their personal situation--I didn't hear them complain. They seem to recognize where they made mistakes and are dealing with them. That's a good thing. Stop judging.
This series is simply a survey of some people at the median. And why do some people always post, "Why is this news?" It's news because news is and has always been about informing the general public about the world around them. Stop reading human interest stories if you don't like them. Oh wait, you can't because you have an unhealthy need to see your comment posted.
"Getting by" on $50,000?? I'd feel rich if I made that in a year. I don't have college debt, but I have credit card debt up to my eyeballs, I make significantly less than $50,000 while working two jobs, hell, I make under $20,000 a year and I can survive just fine.