Tell any parent it’s expensive to raise a family in today’s economy, and they won’t laugh at you, because they’re too tired. But believe me, they already know.
One survey shows that to raise a family of four in 2025, you’ll need a six-figure income in more than half the states in the U.S. And last year’s six figures won’t be the same as this year’s six figures — another studydetermined a family of that size will need an additional $9,360 this year just to keep up with their standard of living from last year. Raising a family in the U.S. is just plain expensive, and it’s only getting more so.
But what if you just… didn’t? What if, instead of scrambling to keep up with the standard of living in their current U.S. town, a family of four lived in Coimbra, Portugal, instead?
Meet the Joneses of Macomb, Illinois.
Meet the Jones family of Macomb, Illinois. Parents Michael and Jennifer both work from home. Daughter Isabella, 15, is in high school, and son Aiden, 18, is living at home to save money during his first year at Western Illinois University.
Combined annual income: $100,000
With help from the Economic Policy Institute, we can assume their expenses look something like this:
Housing: $1,100/month for a three-bedroom, two-bathroom apartment
Groceries: $1,300/month
Healthcare: $2,000/month
Taxes: $1,700/month
College: $6,600/semester
Without including other expenses — car payments, Netflix, Isabella’s soccer fees, Michael’s addiction to high-end sneakers — their total annual expenses as outlined above come to $86,400.
If they live in Illinois.
Meet the Joneses of Coimbra, Portugal.
When Michael, Jennifer, Aiden, and Isabella move to Coimbra, what might their expenses look like?
Housing: $850/month
Their three-bed, two-bath apartment in Coimbra will run them €725/month.
Groceries: $586/month
The Joneses are bringing home a dozen eggs for €2.50, a round of beef for €5.50, a pound of potatoes for €0.75, and a decent bottle of wine for €5 – about €500/month for groceries for the four of them.
Healthcare: $47/month
Under the Portuguese healthcare system, they might be paying €40 or so for doctor’s fees, tests, or trips to the ER, or dentistry (which isn’t covered under the national health service).
Taxes: $3,058/month
Not everything in Portugal can be cheap. Michael and Jennifer will be paying about €2,451/month on their combined $100,000 (€85,313) income.
College: $8,200/year
As a new resident of Portugal, Aiden will have to pay the international student rate of €7,000/year at the University of Coimbra. When he’s lived in Portugal for two years (and for Isabella when she decides to join him at the University of Coimbra) he’ll be eligible for the national student rate of €697, or about $817, per year.
Total: $62,692
In their first year in Portugal, the Jones family will save $23,708 over their Macomb, Illinois, lifestyle. Once Aiden becomes eligible for the national student rate, their savings will climb to $31,091 per year.
How do their savings add up over time?
Year 1, when the family moves: $23,708
Year 3, when Aiden is eligible for free tuition: $78,507
Year 4, when Isabella starts college: $121,981
Year 5, when Aiden graduates and moves out: $145,068
Year 9, when Isabella moves out and the nest empties: $217,029
Year 20, the platinum anniversary of the Joneses’ move to Portugal: $246,729
With nearly a quarter of a million in amassed savings over time, the Joneses don’t regret their move to Portugal. That’s enough for a satisfying lifestyle, a relaxing retirement, and a lot of high-end sneakers.
