The cost of goods and services needed to maintain a household plays a significant role in determining a family’s quality of life. These costs include food, housing, clothing, education, health care, and child care. If a family cannot afford these items, the physical and mental health, social well-being, and financial security of the family may deteriorate.

Increases in these costs can impact a family’s ability to support a modest standard of living. If costs rise faster than household income, low- and modest-income families are at greater risk of poverty. Those already living in poverty fall even further behind.

The greater the number of families who are unable to maintain a modest standard of living, the greater the costs to the government in terms of providing services and income supports.